According to a report released by the UN’s Food and Agriculture Organization (FAO) that Pakistan basmati rice export prices have declined for second consecutive month after increasing in August 2015 and this decline is mainly due to an increase in supplies from the current harvest, lack of export demand as well as surging stocks. It has also been indicated that Pakistan rice exporters are holding around 500,000 tons of basmati rice from last season. In this regard, it has been urged to the government to intervene in the export market and support them. However, the exporters are also lobbying for a rice-energy barter trade with Iran and are keen on increasing exports to China as part of efforts to boost their exports.
Further, it has been observed that in October 2015, Pakistan’s basmati rice export prices have declined by about 23% to around $661 per ton from around $855 per ton in September 2015, and further down about 54% from their year-ago levels of around $1,435 per ton. While, in terms of local currency, average Pakistan basmati rice prices in October 2015 declined by about 22% to around PKR 68,744 per ton from around PKR 88,065 per ton in September 2015, and which is down about 52% from around PKR 143,787 per ton in October 2014.
According to the data available, it indicates that on average Pakistan basmati rice prices stood at around $886 per ton in the first ten months of 2015 (January – October), which is down about 36% from around $1,382 per ton recorded during the same period in last year. Meanwhile, the Pakistan basmati growers have also urged the government to provide an adequate support to increase competitiveness of Pakistan’s basmati rice in the global market.