Pakistan is set to hit a new record for rice exports in 2018, up 18 percent from last year, the U.S. Department of Agriculture (USDA) forecast, thanks to supportive factors such as price competitiveness and steady demand from core markets.
In addition, the USDA said, the country is also reaping the benefits of not using a fungicide that other competitors use.
In 2017, the European Union announced a lower Maximum Residue Levels (MRL) for tricyclazole in rice, with full implementation of these tighter restrictions beginning in 2018. Because Pakistani farmers do not have access to this fungicide, which is commonly used in many other countries, Pakistani exports are more easily entering this market.
“So far this year, EU imports from Pakistan have doubled, while imports from India are only one-third of the volume compared to the same period last year. In June 2018, Saudi Arabia announced the same lower MRL for tricyclazole in rice. As a result, Pakistan’s market share has the potential to rise in this market, while India’s share will likely decline,” the USDA said in its latest report on Friday.