Broken rice prices in the domestic market have witnessed a sharp increase, primarily driven by active buying from feed millers. The shift in demand primarily arises from the limited availability of corn in the market. Earlier this year, heavy flooding severely impacted the corn crop, causing prices to rise steeply from around PKR 2,400 per maund to PKR 4,000 per maund. To offset this, feed manufacturers initially substituted a portion of corn with wheat in their formulations.
However, with the government’s ban on wheat usage in animal feed because of disruption in wheat supplies, millers have now turned to broken rice as a key replacement. This surge in demand from the feed sector has pushed broken rice prices from PKR 79 to PKR 84 per kg, significantly narrowing the margin for exporters.
On the export front, international demand for broken rice remains steady around USD 300 per ton (FOB). Yet, with domestic prices now trading above export parity, exporters are facing severe cost pressure, effectively losing about USD 14 per ton compared to international parity levels.
Looking ahead, as India’s main rice harvest peaks during November, additional global supply is expected to enter the market, which may further ease FOB prices. This additional supply could affect the Pakistani exports further. Unless domestic feed demand stabilizes or global prices rebound, the export competitiveness of Pakistani broken rice may remain under pressure.
