Shifting market dynamics, concerns over Basmati heritage pose challenges. ISLAMABAD: In recent years, Pakistan has emerged as one of the leading exporters of coarse rice globally, rebounding from the setbacks of the 2022 floods and benefiting from upward revisions in Minimum Export Prices (MEPs) by the Ministry of Commerce. Achieving another historic milestone, Pakistan exported more rice in the first 10 months of the current fiscal year, shipping out 5.
087 million tonnes valued at $3.283 billion, marking an 80% increase compared to the previous fiscal year (2022-23), which saw exports worth $1.822 billion and 3.
270 million tonnes in quantity. This significant achievement was attained despite the high export refinance rate at 19%, a policy rate at 22%, and a stable rupee against the dollar during the period. The argument presented by economists, suggesting that rupee devaluation and low interest rates are drivers of export growth, appears invalid when considering the rice market, and other essential edible commodities in general.
Despite exporting more rice this year at higher prices compared to last year, both Basmati and non-Basmati rice prices have surprisingly fallen in the domestic market. This anomaly indicates that rice hoarders and stockists were less inclined to hoard due to high interest costs, while tightened border security measures minimised rice smuggling to neighbouring countries like Iran and Afghanistan. Non-Basmati rice shipments, which have traditionally be.