Market Dynamics & Trends in

PAKISTAN'S RICE EXPORT

INDUSTRY
An Avenue for The Expansion of The Export Market

A Comprehensive Study

by
TABLE OF CONTENT
Country Outlook Trade Procedures & Documentation

Introduction Mandatory Requirements

Global Insights Certification Bodies

Country Insights Way Forward

International Rice Events Why Choose Tradeforesight

COUNTRY‘S OUTLOOK
HORIZONS OF THE
ECONOMY
COUNTRY'S OUTLOOK
The nation's financial
KEY DIMENSIONS
climate is unfavorable
due to the lack of Credit
Environment
confidence among
creditors, popular Supply
Environment
opposition to price
increases, political unrest, Market
supply-chain bottlenecks,
Environment

and tense ties with

Political
trading partners. Environment

Source: www.dnbcountryrisk.com
COUNTRY'S OUTLOOK
CREDIT ENVIRONMENT
Currency is devalued due to the current
account deficit. The borrowing costs
Policy rate Steps have been
increased up to taken to stabilize
have risen due to the tightened 500 bps the falling PKR
monetary policy.
Additionally, Flooding from the previous
year has led to food inflation. Lastly,
Remittance inflows have fallen down KEY ISSUES
due to rising living expenses brought on
by the global economic slump.​ Food Inflation​
However, the central bank increased the
policy rate up to 500 bps since Higher borrowing costs
November 2022. Also, steps have been
taken to stabilize the falling PKR (down
Decreased remittance Inflows
30% YTD) and battle escalating
inflationary pressures.
Currency Devaluation

Source: www.dnbcountryrisk.com
COUNTRY'S OUTLOOK
SUPPLY ENVIRONMENT
Due to the sharp rise in input costs, the
persistence of import restrictions, and Phase Two of CPEC opens
the lack of available credit, large-scale positive prospects for Pakistan
manufacturing will continue to
experience contraction. Supply chains
are being hampered by insufficient
infrastructure, energy constraints, and KEY ISSUES
restricted access to funding.
However, The start of Phase Two of the Supply Chains being hampered
China-Pakistan Economic Corridor
(CPEC) opens positive prospects for Contraction of Large-scale
Pakistan, providing chances to stop the
Manufacturing
country's economy from contracting,
handle manufacturing-related issues,
and create jobs.

Source: www.dnbcountryrisk.com
COUNTRY'S OUTLOOK
MARKET ENVIRONMENT
Pakistan's trade prospects face
challenges due to escalating energy Trade in Goods The emergence of
costs, electricity tariffs, heightened Agreement b/w Kazakhstan as a
political uncertainty, and strained Pakistan & Turkey potential market
relations with India.
However, The Trade in Goods
Agreement between Pakistan and KEY ISSUES
Turkey granted Pakistan preferential
access to the Turkish markets. The Electricity Tariffs
emergence of Kazakhstan as a potential
market shows the untapped market Rising Energy costs
cap. Pakistan's Ministry of Commerce
launched the B2B Barter Trade
Hostile relations with trade partners
Mechanism, fostering trade & reducing
reliance on conventional trade practices.

Source: www.dnbcountryrisk.com
COUNTRY'S OUTLOOK
POLITICAL ENVIRONMENT
The Former Prime Minister’s
Massive Increased
incarceration has led to continued Support for a Political
political unrest that is worsening the sacked Prime Awareness
nation's economic situation. To add on, Minister
with an increase in terrorist activity
spearheaded by the Tehreek-e-Taliban
Pakistan (TTP), the security situation has KEY ISSUES
also gotten worse.
However, the support of the general Political Unrest
public with Imran Khan shows their
interest in politics and economy which Increase in Terrorist Activities
is a sign of nation’s progress and is
important for sustainable growth.

Source: www.dnbcountryrisk.com
INTRODUCTION TO
RICE EXPORTS
RICE EXPORTS DRIVE ECONOMIC
GROWTH, EMPOWER LOCAL
FARMERS, AND ELEVATE PAKISTAN'S
GLOBAL STANDING
Rice exports are crucial for the country's economy
and catalyze expansion and international trade.
These exports, promote trade relations,
strengthen foreign exchange earnings, and
provide local farmers more authority.

The rice industry in Pakistan raises the country's

profile globally thanks to its varied offers and
effective supply networks, helping it to grow
economically and gain importance in global
commerce.
THE GLOBAL RICE
TRADE MARKETS
GLOBAL EXPORTS
INDIA CONTRIBUTES AROUND GLOBAL EXPORT
(2022)
33% OF THE GLOBAL RICE
EXPORT MARKET

Since rice is a common staple meal in

many nations, it is widely exported $ 29.88 Billion
around the world. The two biggest
exporters are India and Thailand,
followed by Vietnam.
TOP 3 EXPORTERS
INDIA THAILAND VIETNAM
Due to their aggressive pricing, a wide
variety of rice types, and effective supply
networks, these nations dominate the
international market. $9.75 B $3.96 B $1.70 B
Exports of rice have increased by 8.7%
during the year 2022 as compared to 32.6% 13.3% 5.7%
MARKET SHARE AS A % OF THE GLOBAL EXPORT
2021. Over the last five years, the export
value of rice increased by 5.4%. Source: Trade Foresight
GLOBAL IMPORTS
THE MAJOR DESTINATIONS GLOBAL IMPORT
(2022)
FOR RICE EXPORTERS ARE
THE CHINA, USA, AND
PHILIPPINES

For nations with little local production of $ 30.99 Billion

rice, international imports are essential
for providing food security and
TOP 3 IMPORTERS
stabilizing prices for the millions of
CHINA US PHILIPPINES
people who depend on rice as a staple
diet.
Important importers include those with
rising populations and production $2.62 B $1.41 B $1.27 B
difficulties. Market gyrations, trade laws,
and agreements all influence trade 8.5% 4.6% 4.1%
MARKET SHARE AS A % OF THE GLOBAL EXPORT
dynamics.
Source: Trade Foresight
 TOP 10 GLOBAL IMPORTERS
& THEIR MARKET SHARE
The top 10 global rice importers contribute 52% of total rice
imports
$0.00 Bn worldwide. $1.00 Bn $2.00 Bn

China $2.62 Bn (8.5%)

US $1.41 Bn (4.6%)

Philippines $1.27 Bn (4.1%)

Japan $0.67 Bn (2.2%)

UK $0.60 Bn 1.9%

Canada $0.50 Bn (1.6%)

South Africa $0.48 Bn (1.5%)

Germany $0.46 Bn (1.5%)

Netherlands $0.42 Bn (1.4%)

Mexico $0.40 Bn (1.3%) Year: 2022

Source: Trade Foresight
TOP BUYERS
IN THE KEY IMPORTING COUNTRIES

UNITED KINGDOM UNITED STATES PHILIPPINES

MANUS DEI RESOURCES ENT.INC

NAN STU AGRI TRADERS

LUCKY BUY & SELL

 GLOBAL IMPORT BY TYPE
MILLED RICE BROKEN RICE HUSKED RICE PADDY RICE

HS CODE: 100630 HS CODE: 100640 HS CODE: 100620 HS CODE: 100610

GLOBAL GLOBAL GLOBAL GLOBAL

$23.96 B $3.65 B $2.16 B $1.08 B

USA CHINA UK MEXICO

$1,313 M $294 M $263 M $175 M

PHILIPPINES SENEGAL NETHERLANDS GUATEMALA

$1,009 M $165 M $167 M $61 M

JAPAN BELGIUM SPAIN
PHILIPPINES

$663 M $157 M $138 M $51 M

 GLOBAL IMPORT
MONTHLY TREND
Throughout the year, a steady pattern of worldwide rice
imports can be discerned. March and June are the months
when exports crossed USD 2 billion.

2022
$2.5 B

$2 B

$1.5 B

$1 B

$0.5 B

$0 B
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
PAKISTAN'S RICE
EXPORT MARKETS
PAKISTAN EXPORT MARKETS
THE TOP 3 EXPORT DESTINATIONS
FOR PAKISTAN RECEIVE 35% OF EXPORTS WORLDWIDE
(2022)
THE COUNTRY'S TOTAL EXPORTS
OF RICE.

Pakistan is one of the major rice-

exporting countries in the world. It
produces a variety of rice, including
$ 1.99 Billion
Basmati and non-Basmati rice, which
are in high demand in international TOP 3 MARKETS
CHINA UAE KENYA
markets.

CHINA, UAE, and KENYA are the leading

rice export partners of Pakistan which, $350.23 M $210.18 M $146.79 M
together, account for over 35% of
Pakistan's total rice export. 17.6% 10.6% 7.4%
MARKET SHARE AS A % OF THE GLOBAL EXPORT
Source: Trade Foresight
PAKISTAN EXPORT VALUE BY TYPES
(2022)
MILLED RICE BROKEN RICE HUSKED RICE PADDY RICE

HS CODE: 100630 HS CODE: 100640 HS CODE: 100620 HS CODE: 100610

GLOBAL GLOBAL GLOBAL GLOBAL

$1400 M $325 M $213 M $1.4 M

UAE CHINA UK UAE

$207 M $200 M $48 M $0.7 M

CHINA AFGHANISTAN ITALY KENYA

$151 M $55 M $44 M $0.4 M

KENYA INDONESIA BELGIUM SOMALIA

$146 M $20 M $27 M $0.2 M

PAKISTAN EXPORTS
MONTHLY TREND
A comparable pattern is evident in the years 2021 and 2022,
characterized by a consistent trend during the initial six months,
with the exception of May 2021 when a conspicuous decline is
noted. Subsequently, in the third quarter of both years, there was
a discernible reduction in the export of rice.

2022 2021
$ 300 M

$ 200 M

$ 100 M

$0M
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
GEOGRAPHICAL OVERVIEW
OVER 60% OF PAKISTAN'S
RICE IS PRODUCED IN PUNJAB Production by Provinces

Punjab is the capital of rice KPK

production in Pakistan. 6%

Punjab, being the agrarian

region is suitable for the
production of water-intensive Punjab
63%
crops like rice.
Baluchistan
The second most rice- 2%

producing region in Pakistan Sindh

is Sindh, followed by 29%

Balochistan and KPK.

 SWOT ANALYSIS

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

Varieties of High- Infrastructure Rising Intense
Quality Rice Restrictions (poor Global Competition
(Basmati) trade routes) Demand between
Competitive Insufficient value (Emergence of new sellers ​
Pricing addition​ markets such as Weather
between traders (Low-quality Kazakhstan) hazards
Government packaging) Sustainable Methods​ Volatility of
support (Eco-friendly currency
Challenges
through policies processing & control) exchange
in Quality Control
Strategic Location Trade rates​
(Non-Compliance of
​for a Trader Agreements with
the
Emerging
international
markets such as UK &
standards)
Oman.
 SEIZING OPPORTUNITIES
How India's (Milled) Rice Export Ban
Can Benefit Pakistan's Exporters
Pakistan could be able to negotiate more favorable prices for its rice
Price Advantage exports. Importing nations may be ready to pay more for Pakistani rice
due to the restricted supply from India.

Exporters from Pakistan can take advantage of this chance to

Quality Recognition emphasize the great quality and selection of rice they provide.

Investment & Exporters may be encouraged to investment in technology which

Innovation may result in increased productivity and higher-quality output.

Making the most of the circumstance may enable Pakistani exporters

Improved Trade
to establish closer connections with nations that purchase their
Relations
products

TOP 5 MILLED RICE EXPORT PARTNERS OF INDIA

IRAN SAUDI ARABIA BENIN UAE CÔTE D'IVOIRE
KEY POTENTIAL
MARKETS FOR
PAKISTAN’S TRADER
$1.07 B $0.87 B $0.5 B $0.39 B $0.33 B
INTERNATIONAL RICE EVENTS
International Rice
Congress (IRC)
https://irc2023.irri.org/
Gulf Food
https://www.gulfood.com/
WorldFood Moscow
https://world-food.ru/en/
Asia Food Expo
https://www.asiafoodexpo.ph/
Investigating International Trade
Fairs and Events for Rice Export
This event brings together scientists, researchers,
policymakers, and industry professionals to discuss the
latest advancements in rice research, production, and
PHILLIPINES
trade. It will be held in Philippines in 2023.
A significant food and beverage trade fair called Gulf
Food is hosted in Dubai. It draws a wide variety of
exhibitors and visitors from the international food sector,
DUBAI including rice exporters
One of the biggest international food and drink fairs ever
held in Russia, including rice and other agricultural
RUSSIA products from all over the world.
This trade expo in the Philippines offers a venue for
networking and business prospects while showcasing a
PHILLIPINES range of culinary goods, including rice.
TRADE PROCEDURES AND
DOCUMENTATION
An important organization that represents rice exporters is the Rice
Rice Exporter Exporters Association of Pakistan (REAP). Exporters are often
Registration
required to register with REAP.

Phytosanitary It attests that the rice products are free of dangerous pests and
Certificate illnesses, is required by many nations.

Certificate of To demonstrate that the rice comes from Pakistan, a Certificate of

Origin Origin (CO) may be needed.

An export permit can be required, depending on the import laws of

Export Permit the receiving nation and the kind of rice being shipped out.

Other documentation and compliance standards are needed, such as

Documentation those relating to invoices, packing lists, shipping paperwork, and
and Compliance
currency exchange laws.
MANDATORY REQUIREMENTS
FOR EXPORT TO KEY MARKETS
Commercial Invoice
Packing list
Certificate of Origin
Phytosanitary Certificate

PAK to EU PAK to USA PAK to UAE

Allergen Declaration
Food Safety Certification

Quality Certificate FDA Registration Certificate of Conformity

Health & Sanitary Certificate Food Safety Plan
CERTIFICATION BODIES
Trade Development A government organization that offers exporters,
Authority of Pakistan especially those that deal with rice, information, advice,
(TDAP)
and support. It also plans trade shows and other
https://tdap.gov.pk/
occasions.

Rice Exporters
Association of Pakistan A private sector trade organization which
(REAP) communicates with the government and promotes the
https://reap.com.pk/ interests of the rice export industry.

Pakistan Standards and It oversees establishing and upholding quality standards

Quality Control Authority
for a variety of goods, including rice.
https://www.psqca.com.pk/

Plant Protection It issues phytosanitary certificates and oversees

Department (PPD) preserving plant health in Pakistan.
https://plantprotection.gov.pk/

It plays a part in providing certificates of origin (CO) for

Chambers of Commerce
rice exports locally and internationally
https://fpcci.org.pk/
 WAY FORWARD
GOVERNMENT SUPPORT
A DIVERSIFIED MARKET
AND TRADE AGREEMENTS
There is potential to Utilizing partnerships and trade
investigate new markets in agreements with other nations can
Europe, North America, Africa, result in lowered trade barriers and
and Asia improved market access.

SUSTAINABILITY FOCUS​ BRAND RECOGNITION

Implementing sustainable
farming practices, water
management plans, and
eco-friendly packaging.​​
TECHNOLOGICAL PROGRESS​
It can raise rice yields,
strengthen quality assurance,
and boost all-around
productivity in the rice
industry. ​
Establishing and promoting the
"Pakistan Rice" brand abroad
can give Pakistani rice a
distinctive character while
fostering consumer and
importer trust and loyalty.
INTERNATIONAL
STANDARDS COMPLIANCE
A positive reputation for Pakistani
rice on the international market can
be developed with consistent
quality control procedures.
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