Pakistan’s rice exports faced a significant revenue decline in the fiscal year 2024–25 (FY25), primarily due to a sharp drop in international prices, according to data released by Optimus Capital Management on Monday.
The country exported 5.8 million metric tons (MMT) of rice in FY25, a modest 3.7% decrease from the 6 MMT exported in the previous year. However, the revenue impact was far more pronounced, with total export earnings plunging 14.7% year-on-year to $3.36 billion, down from $3.93 billion in FY24.
Non-Basmati Rice Takes the Biggest Hit
The decline was largely driven by falling global prices for non-basmati rice, which accounts for over 85% of Pakistan’s rice exports. Non-basmati rice exports dropped 4.7% in volume and 17.4% in value, earning $2.52 billion in FY25 compared to $3.05 billion in FY24. Intense pricing pressure and weaker demand in key markets further exacerbated the decline.
Basmati Rice: Mixed Results
Basmati rice exports showed a slight 3% increase in volume, reaching 797,000 tons. However, earnings from basmati exports fell 5.2% to$832 million, down from $877 million in FY24. The average price of basmati rice dropped nearly 9.1% year-on-year to Rs291.6 per kilogram in FY25, compared to Rs320.8 per kilogram in the previous fiscal year.
June 2025: A Steep Decline
The monthly data painted an even grimmer picture. In June 2025, rice exports plummeted 40.6% month-on-month and 37.1% compared to June 2024. Export revenues for the month stood at $150 million, marking a year-on-year decline of over 50% and a 37.4% drop from May 2025.
Shrinking Share in Overall Exports
Rice exports’ share in Pakistan’s total exports also declined, falling to 10.5% in FY25 from 12.8% in FY24. This highlights the growing challenges faced by the sector amid global market pressures.
A Vital Sector Under Pressure
Despite the revenue setbacks, Pakistan’s rice sector remains a crucial contributor to the country’s foreign exchange earnings. Efforts to explore new markets, such as the planned export of 0.1 million tons of rice to Malaysia, may help offset some of the losses in the coming months. However, the sector continues to grapple with falling prices and stiff competition in international markets.
