ISLAMABAD: The Ministry of Commerce has offered rebates under a duty drawback scheme, including 3 percent for coarse rice and 9 percent for basmati, with approximately Rs15 billion allocated to cover local taxes and levies.
However, exporters say these measures have failed to make Pakistani rice competitive internationally, as domestic prices rose sharply.
Official data from the Pakistan Bureau of Statistics showed basmati rice exports fell 19.21 percent in value and 27.98 percent in quantity, while coarse rice exports dropped 42.50 percent in value and 32.94 percent in quantity.
Exporters blamed high domestic prices and widespread hoarding for the decline, noting that most rice exporters focus on meeting export refinance facility targets rather than developing efficient supply chains or value-added products. Items like rice flour, rice snacks, rice glucose, and byproducts remain underdeveloped, limiting growth potential.
A leading exporter said that duty drawback rebates at ports cannot offset weak farm-level production. “Sustainable export growth requires higher agricultural output and lower input costs for farmers, rather than post-harvest financial incentives,” he added.
The sector also highlighted the need for improved seed quality, better irrigation, and reduced costs for fertilizer and energy. Some exporters suggested that ERF support should shift from commodity rice to value-added rice products and byproducts to strengthen Pakistan’s position in global markets.
