One of the world’s major rice exporters is Pakistan. Approximately 3 million MTS rice (processed) per annum are shipped to China, the Middle East, Europe and East Africa (LiveRiceIndex, 2018). There is only one harvest a year in Pakistan. For the significant northern hemisphere white rice harvests, new crop of Pakistan is normally first to the market. As a result, Pakistani exporters are more inclined to sell their stocks at a discount to other markets. Pakistan’s rice prices are generally at their most reduced in pre-winter, when the new harvest arrives, and tend to firm in summer when stocks are drained. Pakistan’s Super Kernel Basmati is home to the Punjab district in the Himalayan foothills. Whereas, Irri-6 and Irri-9 varieties, and other rice crops are produced in Sindh’s southern region that is irrigated by the Indus River.
Pakistan Basmati rice price of export from 2011 to 2016 (in U.S. dollars per metric ton, f.o.b.)
Source: (Statista, 2018)
The above statistic shows Pakistan basmati rice price of export from 2011 to 2016. In 2016, one metric ton of Pakistani conventional basmati rice had an average export price of 795 U.S. dollars.
Latest export prices of Pakistan’s 1121 Basmati and other varieties
According to the report published by Live Rice Index, on 19th January 2018, Pakistani exporters were awarded with 65,000 MTS of white rice by Indonesia’s Bulog. Following the recent hike in price in Vietnam and Thailand, Pakistani rice exporters held on to their stocks in anticipation of higher prices. As a result of reduced domestic exportable supply, rice exporters elevated their offers in January, 2018. Besides, in Asia Pakistan’s 5% broken white rice remained competitive valued up to US $403 PMT FOB. This is a US $17 PMT and US $27 PMT concession to Vietnamese and Thai conventional 5% broken white rice respectively. Besides, alongside the recent price increases Pakistan’s conventional 100% broken white rice was valued up to US $333 PMT FOB. Moreover, Parboiled 5% STX was valued around US $434 PMT FOB in second week of January 2018. On 21st January, Pakistani 1121 Basmati prices increased in anticipation of removal of import ban by the Iranian government
As stated by Rice Exporters Association of Pakistan (REAP), Pakistani rice exports experienced an increase of 29 percent to 1.9 million MTS. In spite of the fact that exports to China have been sinking, China was the second largest importer of Pakistani rice 174,000 MTS. According to local reports citing the Rice Exporters Association of Pakistan, Pakistani basmati rice will be supported once banking channels with Iran are reestablished.