Pak agricultural export dips after India lifts rice ban

India’s expanding export of agricultural items like rice and onion has impacted Pakistan’s exports, Pakistan’s commerce minister Jam Kamal Khan has admitted in its National Assembly.

In a written reply, the Pakistani minister said agri-food exports accounted for nearly 22 per cent of the country’s outbound trade in FY 2024-25. However, the sector saw a 3.4 per cent drop compared to the previous fiscal year, largely driven by a fall in international prices after India lifted key export restrictions.

The minister said the “re-entry of Indian agri-products” into the global market has led to oversupply and price depression, directly eroding Pakistan’s competitiveness in major commodities such as rice and onion — two of its biggest farm export earners.

Pakistan’s export figures stood at $32.04 billion in FY 2024-25 — up slightly from $30.68 billion a year earlier — but the government admitted that agri-sector weakness offset gains in textiles and IT services.

The minister’s reply highlight multiple stress points in agriculture exports, including regional insecurity affecting transit through Iran, Afghanistan and Gulf routes.

New Delhi banned shipments of various grades of rice in phases between 2022 and 2023 to curb domestic inflation. But in March 2025, it lifted the prohibition on 100 per cent broken white rice, freeing up supplies and allowing exporters to reclaim lost market share.

Trade watchers in Pakistan fear India’s policy reversal will intensify competition in other staples too, with exporters from Vietnam and Myanmar also lowering prices to stay competitive.

Experts believe that Pakistan’s reliance on a few farm commodities makes it particularly vulnerable when India — the world’s top rice exporter — resumes full-scale trade.