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Indian curbs to propel Pakistan's rice exports towards record high

31 January 2024

The record exports are helping to alleviate tight supplies following the restrictions imposed last year by India, the world's biggest exporter, and will bolster Pakistan's depleted foreign exchange reserves, which are crucial for financing imports.

Pakistan's rice exports are likely to jump to a record high in the year ending in June as rival India's decision to curb its own shipments forces buyers to purchase more from Islamabad, which is offering the grain at nearly 16 year-high prices.

The record exports are helping to alleviate tight supplies following the restrictions imposed last year by India, the world's biggest exporter, and will bolster Pakistan's depleted foreign exchange reserves, which are crucial for financing imports.

"We've seen a solid demand for rice in the last few months, mainly because India stopped exporting," Chela Ram Kewlani, chairman of Rice Exporters Association of Pakistan (REAP) told Reuters.

India, which ordinarily ships nearly 40% of globally traded rice, banned exports of non-basmati white rice in a surprise move last year and also imposed export duty on parboiled rice.

Pakistan's exports could jump to 5 million metric tons in 2023/24 financial year, up from the last year's 3.7 million tons, Kewlani said.

Source : moneycontrol

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