Overview
Rice is a staple food item for more than half of the world’s population. It is a major agricultural export and a daily necessity for millions of people across the world. It is popular after wheat and plays an important role in raising the economy. However, prices remain unstable due to many factors like unpredictable weather, international orders impacting consumers, farmers, and exporters.
In this post, we’ll explore price trends, reasons, and all other relevant information about rice that every farmer and consumer must know if connected to the rice sector.
The Importance of Rice in Pakistan’s Agriculture
Rice is 2nd most important food staple in the agricultural sector of Pakistan, following wheat, and is an important cash crop that generates foreign exchange earnings. Rice generates a financial source or earnings for millions of rural families and contributes significantly to the agriculture sector.
Economic Significance
- Foreign Exchange: Pakistan is a leading rice exporter, so through rice product earning billions of dollars in foreign exchange.
- Contribution to GDP: The contribution of rice production adds value in the agricultural sector.
- Income for Farmers: It is a significant source of income for many growers and farmers so reducing poverty and helping in economic development.
Food Security & Employment
- Staple Food: Fulfills both domestic and international demands- serves as the second most important staple food of the nation.
- Rural Employment: Its cultivation or fundamental process generates many job opportunities for rural people, supports their financial life.
Industrial Uses
- Byproducts for Industry: rice straw is used as a feed item for dairy animals, so rice crop offers industrial applications (used in the agricultural and pulp industry).
Pakistan’s Position in the Rice Market
- Supreme-Quality Producer: Pakistan is the leading rice producer and exports high-quality rice – known for its superb quality rice.
- Global Trade: Plays a prominent role in exporting high-quality rice to the Middle East, China, and the UK.
Current Rice Price Trends in Pakistan
Rice prices vary according to varieties; however, 20k/100 kg in 2025 & 30k in some other regions of Pakistan. In 2025, prices are expected to fluctuate in 1st half of the year due to export demands, especially from China. NDRC (National Development and Reform Commission of China) has boosted minimum purchasing prices for some rice varieties to strengthen agricultural production.
For example, 1121 Basmati and super basmati prices also fulfill the global demands. In such case, prices directly affect their food budget, especially for low-budget families. For traders, prices are increased by 15% (40kg bag of rice) in some regions, depending on the variety. The rates for export-quality basmati rice are higher compared to other varieties.
Factors Influencing Rice Prices
Let’s start with some factors that are directly linked to price.
1- International Orders or Demand in bulk
Pakistan fulfills both its domestic and international rice needs, with over 60% of its production available for export, especially demand from China, African, Middle Eastern, and European markets.
2- Production Costs
Consumer gets higher prices naturally because of the high cost of seeds, labour, water, and fertilizers has also increased- farmers complain about these higher rates as they can’t earn well from the crop. The cost of seeds, fertilizers, water, and labor has been increasing steadily. Farmers complain that high input costs eat away much of their profit. Naturally, these costs get transferred to consumers in the form of higher prices.
3- Climate and Weather
There are different natural disasters, such as heavy rains, rising temperatures, and floods affect rice yield. In 2024-2025, heavy floods have damaged crops, so as a result, rates are higher and will be higher for the long term.
4- Government Policies
Polices, subsidies, export restrictions, and prices also impact the rice trend. In case of government permission for open exports, the buyer can compete more efficiently. The imposition of government on exports will be a loss for local farmers as the domestic price decreases.
5- Inflation and Currency Value
General inflation and the depreciation of the Pakistani rupee make imported fertilizers and machinery costlier. At the same time, exporters benefit because rice becomes cheaper for foreign buyers, increasing demand abroad but putting pressure on local consumers.
Impact on Farmers, consumers, and exporters
- It depends on the level of business. Small-scale farmers can’t manage the price shock & face problems. They are struggling with their limited resources. Large-scale farmers manage the higher prices in case of any emergency. They are also afraid of an increase in the cost of diesel, fertilizers, water, and pesticides.
- For local customers, especially for lower- or middle-class families, feel direct pressure of an increase in prices. The lower class cannot manage, and rice is a daily meal for middle class families. An increase in rates can affect their budget.
- Exporter plays a dynamic role in providing rice in the form of a product to the buyer. An increase in demand of rise from the international market can provide them opportunity to increase foreign exchange earnings.
New direction in Agriculture of Pakistan- Rice Crop
According to Experts, Pakistan can invest more amount in:
- Latest Techniques of Farming -improve yield per acre
- Best Water system -deal with shortages and floods.
- Storage facilities – Prevent post-harvest losses.
- Export conditions – Reduce dependency on a few markets.