Export of Basmati rice from Pakistan likely to be badly affected

26-May-2025 03:30 PM

Karachi. Pakistani rice exporters are currently facing multiple challenges, and the situation is expected to worsen in the near future. India has closed its sea route for ships traveling to and from Pakistan, and using alternate routes will significantly increase both transportation costs and delivery time. Additionally, Iran has shut its border, which was an important channel for exporting Pakistani rice.

The movement of ships from Karachi port has slowed considerably, making it difficult for exporters to fulfill existing orders. Protests over water distribution in Sindh province have also created a blockade on the Indus Highway, further disrupting logistics.

Shipping companies and insurance providers have hiked their charges. Due to ongoing tensions with India, containers are not reaching Karachi, affecting rice loading operations. Exporters are now required to provide bank guarantees and are being charged emergency operational surcharges.

This difficult situation for Pakistani exporters is benefiting Indian exporters. Indian rice shipments are proceeding smoothly. Although the export of non-Basmati rice has slowed due to large existing stocks in African and Southeast Asian countries, the Basmati rice export business from India remains strong.

Thanks to record rice production in India, there is a large surplus available for export, and market conditions are favorable. The export offer price of Indian Basmati rice has surged from $850 per ton in February to $1050–1100 per ton currently, while Pakistan’s Basmati rice is priced around $1075 per ton.

If India proceeds with its earlier decision to block the flow of the Indus and its tributaries to Pakistan, it could cause a sharp decline in rice and paddy production there.

This could lead to a severe water crisis in the Punjab and Sindh provinces. Paddy sowing begins in Pakistan from mid-May, and this year, farmers may face delays due to water scarcity.