US tariff boost for Pakistani basmati rice
Pakistan’s rice exporters are set to gain from the U.S.’s new 50% tariff on Indian basmati rice. Pakistan exported 772,725 tonnes worth \$876.9 million in FY2024, with the U.S. taking 24% of shipments. Growing U.S. demand for Asian aromatic rice offers Pakistan a strong market expansion opportunity.
Pakistani rice exporters are likely to benefit from recent U.S. trade measures against India. The United States has imposed a 50% tariff on Indian basmati rice. This move has opened a major opportunity for Pakistan to expand its share in the U.S. rice market.
Pakistan’s basmati rice exports have been rising steadily in recent years. In the fiscal year 2024, Pakistan exported about 772,725 tonnes of basmati rice. The exports earned $876.9 million in foreign exchange. In comparison, the previous fiscal year saw exports of 595,120 tonnes worth $650.4 million. The average price per tonne increased from $1,092 to $1,134.
According to the Rice Exporters Association of Pakistan (REAP), the U.S. is now a key destination. Between November 2023 and October 2024, the U.S. accounted for 24% of Pakistan’s total basmati exports, equal to 1,519 shipments. Italy ranked second with 14% or 908 shipments, followed by the U.K. with 11% or 716 shipments. These three markets together consume nearly half of Pakistan’s basmati exports.
Pakistan exports basmati rice to more than 110 countries. Other major buyers include Australia, Saudi Arabia, the UAE, Canada, the Netherlands, and Germany.
U.S. Department of Agriculture (USDA) data shows a steady increase in rice imports over the last three decades. In 1993/94, imports accounted for 7% of U.S. rice consumption. By 2022/23, this had risen to over 25%. More than 60% of these imports are aromatic varieties from Asia, including Thailand’s jasmine and basmati from India and Pakistan.
Although the U.S. produces some aromatic rice, its taste and aroma differ from Asian varieties. USDA projects that imports of aromatic rice will continue to grow in the coming years.
Retailers in the U.S. are already reporting increased demand for Pakistani rice. Khan Muhammad, a salesman at Super Halal Grocery in Springfield, Virginia, said Pakistani rice is already popular and demand is rising further.
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Source : Minute Mirror
