Cheaper Indian rice hits Pakistan’s export market as Afghan border closure causes $1.1bn losses

Pakistan’s rice exports are facing pressure in international markets as cheaper Indian rice gains ground, the National Assembly Standing Committee on Commerce was informed on Friday.

The committee, chaired by Javed Hanif Khan, was told that Pakistani rice remains superior in quality but is losing market share because of a price disadvantage. Commerce Secretary Jawad Paul informed lawmakers that rice shipments had declined sharply due to increased competition from Indian rice.

Ministry officials said Indian rice was being sold at around $1,100 per tonne, compared with approximately $1,300 per tonne for Pakistani rice, making it difficult for Pakistani exporters to compete in price-sensitive markets.

Officials also told the committee that complaints had been received that Indian traders were rebranding Pakistani rice before selling it abroad. However, they said no evidence had been found to substantiate these claims.

The rice issue was discussed as part of a broader review of Pakistan’s external trade performance and the impact of regional conflicts on exports.

The committee was informed that food sector exports had declined by 25%. Jawad Paul said transit trade and exports had fallen by $1.2 billion during the first nine months of the current fiscal year.

Officials also informed the committee that Pakistan had suffered export losses of $1.1 billion due to the closure of the Afghan border, while the conflict in the Middle East had further reduced overseas shipments by an estimated $2 billion.