Exporters cite high domestic prices, hoarding, weak farm output as key factors.

By News Desk

Pakistan’s rice exports declined by 35.38% in February despite a government subsidy scheme, raising concerns among exporters about its effectiveness.

Data from the Pakistan Bureau of Statistics shows basmati exports dropped 19.21% in value and 27.98% in quantity during the month. Coarse rice exports also fell, declining 42.50% in value and 32.94% in volume.

The government had introduced a duty drawback scheme offering 3% rebate on local taxes and levies for coarse rice and 9% for basmati exports. Around Rs15 billion was allocated to support exporters under this programme.

Exporters said the subsidy had contributed to higher domestic prices, reducing Pakistan’s competitiveness in international markets. They also pointed to hoarding and supply constraints as factors affecting export volumes.

Market participants noted that the rise in local prices made it difficult for exporters to match global rates, limiting the impact of financial incentives. They said the decline in exports indicates that the subsidy scheme has not achieved its intended outcome.

Industry representatives also highlighted structural issues in the sector, including limited value addition and reliance on commodity trading. They said exporters have largely focused on meeting export refinance facility targets rather than developing processed and higher-value rice products.

Stakeholders added that long-term export growth depends on improving agricultural productivity. They identified better seed quality, efficient irrigation, and lower input costs such as fertiliser and energy as key requirements.

They also suggested revising policy support by shifting incentives away from raw commodity exports toward value-added rice products and byproducts.

Published Date: March 18, 2026