In recent years, Pakistan has steadily increased its exports of basmati rice. The nation sold over 772,725 tonnes of basmati rice in FY24, bringing in $876.9 million, up from 595,120 tonnes valued at $650.4 million in the previous fiscal year, according to the Rice Exporters Association of Pakistan (REAP). Additionally, the mean export price per tonne rose from $1,092.93 to $1,134.86.
Between November 2023 and October 2024, the United States accounted for 24 percent of Pakistan’s total basmati exports through 1,519 shipments, according to data from Volza’s Global Trade platform. With shares of 14% (908 ships) and 11% (716 shipments), respectively, Italy and the UK came next.
The US Department of Agriculture (USDA) reports that over the last three decades, rice imports have increased gradually, rising from 7 percent of the domestic market in 1993–1994 to over 25 percent by 2022–2023. More than 60% of these imports are aromatic Asian types, namely basmati from India and Pakistan and jasmine from Thailand.
Wide-ranging taxes on a number of Indian goods, such as electronics, medicines, and basmati rice, resulted from US punitive actions that targeted India’s energy and trade connections with Russia. Basmati rice was still subject to the entire 50 percent levy, even though several industries were eventually granted exemptions. Pakistani basmati rice, on the other hand, still has a significant price advantage in the US market due to its lower tax of 19 percent.
US Tariff on Indian Rice Opens Market for Pakistan
