Pakistan reduces rice prices as India allows global supply

Pakistan has decided to export rice at a lower price in order to maintain its trend to overseas markets after India resumed exporting non-basmati white rice.

Pakistan eliminated the minimum export price (MEP) policy after the world’s biggest rice exporter gave a go-ahead to its exporters on Saturday for inter-country trading of non-basmati white rice.

The Ministry of Commerce working under Minister Jam Kamal announced the immediate removal of the minimum export price on rice on Sunday, which was introduced in 2023, following a formal request from the Rice Exporters Association of Pakistan (REAP).

However, during the last year, Pakistan’s own MEP for rice was $1300 per metric tonne and did not decline to $900, despite repeated requests from the REAP.

The biggest rice shipment with the softened international prices forced other major exporters such as Pakistan, Thailand, and Vietnam to reduce their rates.

“New Dehli set a floor price for non-basmati white rice exports of $490 per metric tonne,” Reuters quoted an Indian government official.

However, the Indian government’s decision would appear as an obstacle to achieving the estimated target of rice exports, which was set on September 17.

The newly elected chairman had expressed hope to bring the exports to $5 billion in the next fiscal year from 3.9 billion in FY2023.