Pakistan is set to export 100,000 metric tons of rice to Bangladesh, continuing the government-to-government (G2G) trade between the two countries. So far, Pakistan has exported 61,000 metric tons of rice in October and with this new order, exports are expected to increase further. Despite this order, Pakistan’s rice exports remain below last year’s levels due to strong competition and ample supply from China and India.
The tender for 100,000 tons of rice includes both IRRI and aromatic rice varieties, which will be shipped in multiple consignments over the coming months. Earlier in February, Pakistan and Bangladesh initiated G2G rice trade, with Pakistan supplying 50,000 tons to Bangladesh. Following the announcement of the new tender, IRRI rice prices in Pakistan have started to rise as suppliers aim to secure more orders.
Pakistan needs to offer rice at the lowest possible prices, since bidding higher could result in losing future contracts. Bangladesh suffered consecutive floods in the last fiscal year, which wiped out more than 1 million tons of domestic rice production. To meet local demand and stabilize prices, the Bangladesh government has set a target to import close to 900,000 metric tons of rice this year.
Bangladesh is diversifying its import sources to ensure consistent supply and avoid overdependence on any single market. This provides Pakistan an opportunity to expand its rice exports while supporting Bangladesh in managing supply shortages caused by natural disasters. With proper pricing and timely delivery, Pakistan can strengthen its position in the international rice market and maintain a competitive edge against other exporters.
