Pakistani rice loses edge to India

Federal Minister for Commerce Jam Kamal Khan has said that rice exporters will receive support through the Export Development Fund (EDF) to help address pricing challenges in international markets.

In an exclusive interview with The Express Tribune, Kamal Khan said that effective utilisation of the EDF could potentially generate $1-1.5 billion in foreign exchange for the country. He noted that Pakistani rice is currently priced higher in the global market, which is creating difficulties for exporters.

According to the minister, Indian Basmati rice is being exported at around Rs1,000 per kilogram, while Pakistani Basmati is priced at approximately Rs1,250 per kilogram. In the case of non-Basmati rice, he said there is a price difference of about $20 per tonne, making Pakistani rice less competitive internationally.

He warned that in the absence of government support, around three million tonnes of rice could remain unsold in the domestic market, with farmers bearing the financial impact. He added that this situation could push farmers to shift to alternative crops in the next season.

Kamal Khan said the government has also held discussions with ambassadors from China, Indonesia and the Philippines, and is exploring government-to-government (G2G) export arrangements. He added that if rice exports are conducted under such G2G frameworks, the use of the EDF may not be required.

Separately, the commerce minister met Indonesian Ambassador to Pakistan Chandra Warsenanto Sukotjo, on the directions of Prime Minister Shehbaz Sharif, to review and advance bilateral trade, investment and sector-specific cooperation between Pakistan and Indonesia.

During the meeting, Kamal Khan briefed the ambassador on Pakistan's evolving trade strategy, with a particular focus on rice exports, which he said is a key priority assigned by the prime minister. According to an official statement, he noted that Pakistan remains among the world's leading rice exporters, offering internationally recognised quality, while acknowledging that global price competition, especially following recent market interventions by major producers, has created challenges for exporters.

He said the government is actively working on financial and commercial mechanisms to improve price competitiveness without compromising quality, with the aim of sustaining and expanding Pakistan's share in global rice markets. The minister highlighted Pakistan's proposal to re-engage selected partner countries, including Indonesia, through both open-market and G2G frameworks. He said price, reliability and quality remain key considerations for importing countries and stressed the importance of reviving the Pakistan-Indonesia rice cooperation framework through renewed dialogue.

Officials recalled that a rice memorandum of understanding signed in 2015, which provided for up to 1 million metric tonnes (MMT) of rice procurement annually on a G2G basis, expired in 2019. Pakistan has since shared a revised draft with the Indonesian side and expressed hope for its early finalisation to institutionalise long-term cooperation in the staple commodity.

The commerce minister also raised issues affecting other agricultural exports, particularly kinnow (mandarin). He said Pakistan is awaiting the issuance of import quotas by Indonesia to ensure uninterrupted seasonal exports, warning that delays could result in losses for growers and exporters.

He also expressed concern over the recent increase in food and agricultural testing requirements for Pakistani kinnow, from eight to 24 tests, which adds to costs and processing time. He said Pakistan's Department of Plant Protection is already engaged with Indonesian counterparts to address the issue.

Beyond agriculture, the meeting discussed broader avenues for economic cooperation. Kamal Khan invited Indonesian investors to consider Pakistan as a regional hub for palm oil storage, processing and onward supply to Africa, the Middle East, Central Asia and other markets. He highlighted Pakistan's expanding port and logistics infrastructure and its strategic location as a gateway to regional markets.

The Indonesian ambassador appreciated Pakistan's proposals and the positive momentum generated by recent high-level exchanges between the two countries. He assured that the issues raised, particularly those related to rice cooperation, agricultural market access and trade facilitation, would be conveyed to Jakarta.

Both sides agreed to intensify institutional engagement, including the early convening of the Joint Trade and Development Committee, trade forums and virtual consultations, to maintain momentum and advance bilateral economic cooperation.