Basmati boom lifts Pakistan to world’s third-largest rice exporter; UAE top destination

Dubai: Pakistan’s rice exports staged a strong rebound in December 2025, rising 14 per cent month-on-month compared to November, driven largely by a more than 50 per cent surge in Basmati shipments, Dawn reported.

The sharp pickup helped Pakistan overtake Vietnam to become the world’s third-largest rice exporter for the month, behind India and Thailand.

Trade data cited by Dawn showed Pakistan exported 489,000 tonnes of rice in December (excluding shipments to Iran), compared with Vietnam’s 387,000 tonnes. This marked Pakistan’s best-ever monthly rice export performance, signalling renewed momentum in the sector.

The UAE remained the top destination, importing 74,897 tonnes, including 16,850 tonnes of Basmati, followed closely by China with 74,685 tonnes. Other major markets included Tanzania (62,900 tonnes), Kenya (60,300 tonnes), Ivory Coast (41,700 tonnes), Guinea-Bissau (31,850 tonnes), Malaysia (23,930 tonnes), Madagascar (17,800 tonnes), Kazakhstan (17,050 tonnes), Saudi Arabia (16,032 tonnes, including 5,350 tonnes of Basmati), and the EU and UK combined (21,100 tonnes, including 15,600 tonnes of Basmati). Smaller volumes were shipped to Oman, the United States and Canada.

A notable development in December was Pakistan’s expanding footprint in Central Asia. Exports to Kazakhstan crossed 17,000 tonnes, including 10,300 tonnes of Basmati, while shipments to Uzbekistan reached 10,382 tonnes. Industry experts cited by Dawn said this reflects a structural shift, with Pakistan now exporting directly to Central Asian states such as Kazakhstan, Uzbekistan, Azerbaijan, Turkmenistan, Tajikistan and Kyrgyzstan, instead of routing shipments through Afghanistan.

Despite the strong December showing, exporters say deep-rooted challenges remain. Pakistan’s rice exports to Iraq, one of the world’s largest importers of Indian Basmati, remain negligible, while shipments to Turkiye, a key transit hub for Iraq and parts of the Middle East and Eastern Europe, are also minimal.

Prime Minister Shehbaz Sharif has directed authorities to formulate a comprehensive strategy to boost rice exports and rein in the trade deficit.

While officials have blamed low-priced Indian rice and phytosanitary rejections for the sector’s struggles, exporters argue that policy missteps are the core problem.

Rice analyst Hamid Malik cited intense global competition, higher global output — particularly in India — weak demand, rising freight and logistics costs, inconsistent fiscal and monetary policies, regulatory distortions, hoarding-driven domestic price inflation and border security disruptions.

Still, Malik pointed to emerging positives. Demand from Bangladesh remains strong, though high freight costs have hurt competitiveness, while Central Asia is shaping up as a promising market since Pakistan’s harvest began in October 2025.

Exporters also say a 50 per cent US tariff on Indian rice has begun to benefit Pakistan, with shipments to the United States picking up. In Iran, foreign exchange shortages have forced importers to use their own funds, a shift that has favoured Pakistan due to proximity, Dawn reported.