Rice Exports Drop 35% in February Despite Subsidies

Pakistan’s rice exports fell sharply in February, declining by 35.38 percent despite government subsidies aimed at supporting the sector, raising concerns among exporters about the effectiveness of the support programme.

The government had introduced duty drawbacks of 3 percent on local taxes and levies for coarse rice and 9 percent for basmati exports, allocating around Rs. 15 billion for rebates. However, exporters say the incentives have pushed domestic prices higher, making Pakistani rice less competitive in international markets.

According to data from the Pakistan Bureau of Statistics, basmati rice exports dropped 19.21 percent in value and 27.98 percent in quantity during February

Exports of coarse rice declined even more sharply, falling 42.50 percent in value and 32.94 percent in quantity.

Exporters attribute the decline mainly to higher domestic prices and hoarding, which they say have reduced Pakistan’s competitiveness in global markets. Industry stakeholders also argue that subsidies at the export stage cannot offset weak agricultural production and rising input costs faced by farmers.

They stressed that sustainable export growth requires improvements in farm productivity, including better seed quality, efficient irrigation and lower costs for fertiliser, energy and other agricultural inputs. Without addressing these structural issues, exporters say financial incentives alone will have a limited impact on boosting rice exports.