Pakistan’s rice exports fell 35.38% in February from a year earlier, official data showed, despite government subsidies aimed at supporting shipments, with exporters saying the incentives have pushed up domestic prices and hurt competitiveness.
The government introduced duty drawbacks on local taxes and levies, offering 3% on coarse rice and 9% on basmati, allocating about Rs15 billion ($54 million) under the scheme to boost exports.
Exporters, however, said the incentives have contributed to higher domestic prices, making Pakistani rice less attractive in international markets where buyers are sensitive to costs.
Also read: Flour Prices Increase Despite Reduction in Wheat Issue Price
Data from the Pakistan Bureau of Statistics showed basmati rice exports fell 19.21% in value and 27.98% in quantity in February. Exports of coarse rice declined 42.50% in value and 32.94% in volume.
Industry participants attributed the drop to a combination of higher local prices and hoarding, which they said reduced supply available for export and weakened Pakistan’s position against competitors.
They added that incentives at the export stage cannot offset broader challenges, including weak agricultural output and rising input costs faced by farmers.
Analysts and exporters said improving productivity—through better seed quality, more efficient irrigation and lower costs for fertiliser and energy—would be key to sustaining export growth, warning that subsidies alone are unlikely to reverse the decline.
