Pakistan rice exports slump 40% as India’s return hits pricing power

A photograph taken on June 7, 2023 shows large bags of rice displayed for sale in Sonali Supermarket in the 'Balti Triangle' area of Birmingham, central England. (AFP/ file)
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Updated 24 February 2026
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Pakistan rice exports slump 40% as India’s return hits pricing power

  • Statistics show non-Basmati shipments have fallen over 50 percent in July-January period
  • Government offers 9 percent tax drawback on premium Basmati exports to support sector

ISLAMABAD: Pakistan’s rice exports fell 40.5 percent to $1.31 billion in the first seven months of the fiscal year, official data showed on Tuesday, as India’s return to the global market squeezed Islamabad’s market share and pricing power.

According to the Pakistan Bureau of Statistics (PBS), non-Basmati exports dropped 50.8 percent to $827.8 million, with volumes falling to 2.0 million tons from 3.15 million tons a year ago. Basmati exports declined 6.62 percent to $477.7 million, with volumes easing to 436,484 tons from 487,278 tons.

The Ministry of National Food Security told a parliamentary committee in two separate meetings in December and January that India’s re-entry into the global rice market was a key factor behind the decline, saying increased Indian supplies had made Pakistani rice less competitive.

Officials told lawmakers that India benefits from free trade agreements and provides substantial support to its rice sector, putting additional pressure on Pakistani exporters.

In response, the Ministry of Commerce last month issued a notification under the “Drawback of Local Taxes and Levies for Rice Order, 2026,” allowing a rebate of 9 percent of the free-on-board (FOB) value for Basmati exports priced above $750 per metric ton.

The government said the measure, announced on January 23, aims to ease liquidity pressures on exporters and improve competitiveness.

While PBS data for July-January shows a 40.5 percent decline, figures from the Federal Board of Revenue (FBR) for July-December show an even steeper 47 percent drop to $973 million from $1.82 billion in the same period last year, reflecting a deficit of over $800 million.

Industry representatives say they are now focusing on market diversification to counter the slowdown.

“Currently Basmati is mainly exported to Middle East and EU. Non-Basmati is exported to Philippines, Indonesia, Malaysia and African countries,” Malik Faisal Jahangir, chairman of the Pakistan Rice Exporters Association, told Arab News last week.

“For the new markets for our non-basmati rice exports, we are looking to increase our volumes to China, Philippines, Indonesia and Bangladesh,” he added.


Peace can only prevail if Afghanistan renounces support for ‘terrorism’— Pakistan defense chief

Updated 04 March 2026
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Peace can only prevail if Afghanistan renounces support for ‘terrorism’— Pakistan defense chief

  • Pakistan’s chief of defense forces visits South Waziristan district bordering Afghanistan
  • Pakistan says has killed 481 Afghan Taliban operatives since clashes began last Thursday

ISLAMABAD: Pakistan’s Chief of Defense Forces Field Marshal Syed Asim Munir said on Wednesday that peace with Afghanistan can only prevail if Kabul renounces support for “terrorism” and “terrorist” organizations, the military’s media wing said as the two countries remain locked in conflict. 

Fighting between the two neighbors, the worst in decades, broke out last Thursday night after Afghan forces attacked Pakistan’s military installations along their shared border. Afghanistan said its attacks were in response to earlier airstrikes by Pakistan against alleged militant hideouts in its country. 

Pakistan accuses Afghanistan of sheltering militant outfits such as the Tehreek-e-Taliban Pakistan (TTP) on its soil who have launched attacks against Pakistani civilians and security forces in recent years. Kabul denies the allegations. 

Munir visited Wana town in Pakistan’s South Waziristan district to review the security situation and troops’ operational preparedness at the Afghan border, the Pakistani military’s media wing said in a statement. 

“The Field Marshal reiterated that peace could only prevail between both sides if the Afghan Taliban renounced their support for terrorism and terrorist organizations,” the Inter-Services Public Relations (ISPR) said. 

The military chief said the use of Afghan soil by militant outfits to launch attacks against Pakistan was unacceptable, vowing that “all necessary measures” would be taken to neutralize cross-border threats. 

During the visit, Munir was briefed by military commanders about ongoing intelligence-based operations and measures being taken by the military to manage the border with Afghanistan.

He was also briefed about “Operation Ghazab Lil Haq” or “Wrath for the Truth,” the name Pakistan has given to its military operation against Afghan forces, the ISPR said. 

The Pakistani military chief spoke to troops deployed in the area, praising their vigilance, professional conduct and high morale, the ISPR said. 

Pakistan’s Information Minister Attaullah Tarar said on Wednesday that the military has killed 481 Taliban operatives, injured more than 690 and destroyed 226 Afghan checkposts since clashes began. 

Arab News has been unable to verify claims by both sides about the damages they claim to have inflicted on each other.

Afghanistan has signaled it is open for dialogue but Pakistan rejected the offer, saying it would continue its military operations till its objectives were achieved. 

Since the conflict began, diplomatic efforts have intensified with several countries, including global bodies such as the European Union and United Nations, urging restraint and calling for talks.

Turkish President Recep Tayyip Erdogan told Pakistani Prime Minister Shehbaz Sharif that ⁠Ankara would help ⁠reinstate a ceasefire, the Turkish Presidency said on Tuesday, as other countries that had offered to mediate have since been hit by the conflict in the Gulf.