The rice export industry in Pakistan suffered a significant blow in fiscal year 2025, with overall export earnings declining by 14.79 per cent to 3.36 billion. The decline was mainly due to a decrease in international prices; the average price of exports decreased by 9.1 per cent compared to the previous year to Rs. 291.6 per kilogram.
Sharp Decline in Rice Export Revenue for FY25
The FY25 export volume declined by 3.7 per cent to 5.8 million metric tons, primarily due to a lack of demand and increased competition in the global market. The decline in income has been a matter of concern to farmers, exporters and policy makers because rice is the major source of foreign exchange to Pakistan.
International Price Drop Impacts Pakistan’s Earnings
The report reveals that a sharp decline was recorded in non-basmati rice, which forms up to 85 per cent or more of the nation’s rice exports. The decrease in globally traded prices for non-basmati varieties is causing negative price pressure both in volume and value. Basmati rice, which can be regarded as a high-value export, stood its ground in terms of quantity, whereas in terms of earnings, it was challenged.
Performance Breakdown: Basmati vs. Non-Basmati Rice
In FY25, Basmati rice exports rose slightly by 3 per cent to 797,000 tons. However, their export earnings decreased by 5.2 per cent to $ 832 million, representing a decline from $ 877 million last year. Regular exports were the most affected, with a 4.7 per cent decrease in volume and a substantial 17.4 per cent decline in value, amounting to 2.52 billion, compared to 3.05 billion in FY24.
Falling Prices and Monthly Export Trends
These are even more impressive compared to monthly values. During June 2025 alone, rice exports in Pakistan fell by 40.6 per cent month-on-month and 37.1 per cent year-on-year, and monthly sales of rice exports in Pakistan fell by more than 50 per cent to 150 million dollars. These numbers highlight continual fluctuations and vulnerability to the dynamics of the global market.
Rice’s Shrinking Share in National Exports
The percentage of total exports in Pakistan was also affected, as it decreased to 10.5 per cent in FY25 after rising to 12.8 per cent in FY24, primarily due to the decline in rice exports. The pattern highlights the need to implement diversification and resilience strategies across the country’s overall export line. With the global market dynamic continuously changing, value addition, branding, and exploring new markets could be a priority for Pakistani rice exporters to keep pace in the upcoming years.
