$250–300 Per Ton Gap With India Hurting Pakistan’s Basmati Rice Exports, Says Ali Hussam Asghar

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By Our Correspondent

LAHORE – A sharp price gap of $250 to $300 per ton between Pakistani and Indian basmati rice is severely undermining Pakistan’s export competitiveness, Ali Hussam Asghar, former Chairman of the Rice Exporters Association of Pakistan (REAP) and former Senior Vice President of the Lahore Chamber of Commerce and Industry (LCCI), said on Monday.

Speaking after a significant decline in Pakistan’s rice exports during the first half of the current fiscal year, Asghar said the disparity is largely due to strong policy support extended by the Indian government to its farmers and exporters.

“India has been consistently supporting its rice growers through subsidies, research, and seed development, which allows them to offer basmati at $250 to $300 per ton cheaper than Pakistan,” he said. “We are losing market share not because of quality, but because of structural disadvantages.”

According to official briefings presented before the National Assembly Standing Committee on Commerce, Pakistan’s rice exports declined in both volume and value during the first six months of FY2026. Global rice prices have also dropped sharply—nearly halving—following India’s re-entry into the international market after export restrictions in 2023-24.

The committee was informed that increased global production and India’s resumed exports have created a supply glut, further pressuring prices. While the international rate difference between Pakistani and Indian rice was officially cited at around $20 per unit in some markets, exporters argue that in premium basmati segments the difference is substantially higher per ton.

Asghar stressed that Pakistan’s rice sector is suffering from “zero meaningful research and development” over the past decade. “Our seed varieties are outdated. Yields are stagnant. Without introducing new hybrid and high-yield seed varieties, we cannot compete with India’s productivity,” he said.

He called for urgent government intervention in agricultural research, development of climate-resilient hybrid seeds, and modern farming techniques to enhance per-acre yield and reduce production costs.

Pakistan currently holds rice reserves worth approximately $2 billion, according to the committee briefing. Financial support of PKR 15 billion was disbursed from the Export Development Fund (EDF) to exporters, offering some relief to the sector.

However, Asghar warned that financial assistance alone will not solve structural weaknesses. “Support packages are temporary solutions. What we need is long-term agricultural reform, research institutions working effectively, and public-private collaboration to develop competitive seed technology,” he said.

He also pointed out that competitors are aggressively marketing their rice in traditional Pakistani markets, including the Middle East and Europe, while Pakistan’s branding and market diversification efforts remain weak.

“If we fail to act now, Pakistan’s basmati—once considered the gold standard—will continue to lose ground,” he cautioned.