Islamabad 12 August: The recent decision by the United States to impose higher tariffs on Indian exports, including basmati rice, has created a significant opportunity for Pakistan to increase its share in the US aromatic rice market.
The tariff dispute stems from US measures linked to India’s trade and energy ties with Russia. While certain sectors were exempt, basmati rice was not, and now faces a 50% US import tariff. Pakistani basmati rice, by comparison, is subject to a 19% tariff, giving it a clear price advantage.
Indian media reports estimate the hike could slash India’s basmati exports to the US by 50–80%, pushing prices close to $1,800 per metric tonne. Pakistani basmati remains priced around $1,450 per tonne, prompting a surge in interest from US importers and retailers.
Pakistan’s basmati rice exports have been steadily rising. According to the Rice Exporters Association of Pakistan (REAP), the country shipped 772,725 tonnes worth $876.9 million in FY24, up from 595,120 tonnes worth $650.4 million in FY23. The average export price increased from $1,092.93 to $1,134.86 per tonne.
Trade data from Volza shows that between November 2023 and October 2024, the US accounted for 24% of Pakistan’s total basmati rice shipments, followed by Italy at 14% and the UK at 11%. Combined, these three markets absorbed nearly half of Pakistan’s basmati exports. Pakistan currently supplies to more than 110 countries, including Australia, Saudi Arabia, the UAE, Canada, the Netherlands, and Germany.
In FY24 alone, basmati exports rose by 35%, with US demand playing a pivotal role.
The US Department of Agriculture (USDA) reports that rice imports have grown from 7% of the domestic market in 1993–94 to over 25% in 2022–23, with more than 60% consisting of aromatic rice from Asia, mainly jasmine from Thailand and basmati from India and Pakistan. The USDA projects continued growth in aromatic rice imports, offering further potential for Pakistan to expand its footprint in the US market.
