India’s decision to increase its rice exports has disrupted Pakistan’s agricultural exports. Pakistan’s Commerce Minister Kamal Khan admitted in the National Assembly that India’s increased exports of agricultural products like rice and onions from India have had a significant impact on Pakistan’s exports. Trade tensions which are one of the most common words between India and Pakistan deepens wider after this. The Pakistani minister stated that agri exports accounted for approximately 22 percent of the country’s total exports in the 2024-25 fiscal year. However, this sector marked a decline of 3.4 percent compared to the previous fiscal year. He further said that this decline can be mainly attributed to falling international prices after India lifted its export restrictions. Overall, Pakistan believes that India has lifted export restrictions on key products like Indian rice among others leading to softening of product prices in the market.
How Indian Rice Exports Spoiled Pakistan’s Game?
The Pakistani minister blaming India for decline in its agri exports said that the re-entry of Indian agricultural products along with Indian rice and non-basmati rice into the global market led to an oversupply and falling prices. This directly impacted Pakistan’s competitiveness, especially in key products like rice and onions. It should be noted that rice and onions play a significant role in Pakistan’s agricultural exports.
For the unversed, the Indian government had banned the export of various rice varieties between 2022 and 2023 to control domestic inflation. However, in March 2025, India lifted the ban on 100 percent broken white rice, allowing Indian rice to flood the market again and allowing Indian exporters to regain lost market share, which also resulted in India export growth.
Difference Between India Pakistan Trade Policy
The decline in Pakistan’s agri exports is also mainly attributed to the difference between Indian Pakistan Trade policy. While India is not dependent on any single products for exports, Pakistan remains dependent on just few crops. Several Pakistani trade experts said that India’s policy will increase competition in other agricultural products as well, as countries like Vietnam and Myanmar are also reducing prices to remain competitive. Experts believe that Pakistan’s dependence on just a few agricultural commodities is its biggest weakness, especially if India – the world’s top rice exporter – returns to trade with full capacity.
Pakistan’s total exports stood at $32.04 billion in the 2024-25 fiscal year, slightly higher than the previous year’s $30.68 billion. However, the government acknowledged that weakness in the agricultural sector offset gains in textiles and IT services. Regional insecurity also impacted trade through Iran, Afghanistan, and the Gulf.
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