Unrest in Sindh provice flares up again, adding to the existing shipping woes.

By Subramani Ra Mancombu.

Pakistan rice exports in trouble as the unrest in Sindh has added the problems it is facing in shipping its consignments, after its bilateral relations with India deteriorated. 

In April, Pakistan rice exports declined to a little less than 44,000 tonnes, the lowest during the country’s current fiscal to June, data released by the State Bank of Pakistan showed. 

This month, operations at Pakistan’s Karachi, Qasim and South Asia Terminal were hit after India launched an offensive between May 7 and 11 against Islamabad’s terrorist camps after terrorists gunned down 27 tourists in Kashmir on April 27. 

Operations at Pakistani ports were affected at least for a week from May 7 and as a result, a huge backlog of containers has built up and there is severe congestion at the ports, particularly Qasim. However, mother vessels are not setting sail to any of the Pakistani ports since they are denied transshipment access by Indian ports for security reason.

Iran border closure

Media reports said the export slump in April was primarily linked to the temporary closure of the Iran border, a key route for Basmati rice shipments. 

Logistics disruptions also impacted rice shipments in late April, when protests by Sindh nationalist groups on the Indus Highway over water distribution blocked road traffic, causing backlogs at Karachi Port.

Though the demonstrations ended then, they have flared up afresh this week. On Wednesday, violent protests erupted in Sindh over the controversial canal construction projects on the Indus River. At least two were dead and several were injured in police firing. 

People in the Sindh Province are protesting against the construction of new irrigation canals that many believe will reduce their access to already scarce Indus River water, particularly for drinking.

Rising costs

On the other hand, the shipping problems have led to increased overhead costs in terms of higher insurance, bank guarantees and emergency operational surcharges.

“Containers are not going to Karachi due to Pakistan’s dispute with India. So, the loading of rice is getting affected,” said a trader.

The situation has turned advantageous for India, which does not face any problem. Though the market is currently slack as African and South-East Asian countries hold huge inventories, demand will likely re-emerge in the third quarter.

“It is not just these problems. India’s unilateral ending of the Indus Water Treaty, signed in 1960, will also affect Pakistan, as its rice-growing regions will be deprived of water. Its khareef and rabi paddy crops could be affected,” said New Delhi-based exporter Rajesh Paharia Jain.

Huge stocks, record crop

Pakistan’s export problems have resulted in Basmati prices increasing globally. India is quoting $1,050-1,100 a tonne, while Pakistan is offering at $1,075. In February, prices were ruling around $850.

Trade analyst S Chandrasekaran told businessline a month ago that Pakistan’s cotton and rice production during the kharif season could be affected by India stopping the flow of water into Pakistan. “It is the production of rice that could be affected more badly because of India’s decision,” he said. 

Pakistan produces around 10 million tonnes of rice annually. “Sowing of paddy begins around May 15. States such as Punjab and Sindh require irrigation. These regions are dependent on canal water. Barring big farmers who have borewells, the others could be affected,” said Chandrasekaran.

These developments will likely see buyers shifting to India. According to the US Department of Agriculture, India is estimated to export 24 million tonnes of rice in the new marketing year beginning October as it is flush with stocks.  

As of May 15, India has 38.19 million tonnes (mt) of rice, which is higher than the mandatory buffer norm of 13.54 mt. It has also unmilled paddy, which can yield 21.36 mt of rice.

This comes amidst the Agriculture Ministry estimating rice production at a record 149 mt in the current season to June. 

Published Date: May 24, 2025