PM Modi shows Shehbaz Sharif its place, Pakistan’s export of THIS commodity plunges 40 percent after India’s return, government issues statement

New Delhi: Bankrupt and debt-ridden Pakistan‘s rice exports have witnessed a massive hit with India‘s return to the global market. Pakistan has reportedly suffered a major setback as its exports fell by 40.5 percent to USD 1.31 billion in the first six months of the current fiscal year. This information was revealed on Tuesday through data presented to the Standing Committee on Commerce of Pakistan’s National Assembly. According to the reports, the primary reason behind the decline is India’s re-entry into the global market, which has reduced Islamabad’s market share and pricing power.

The losses have been even steeper in the non-basmati rice segment.

Here are some of the key details:

According to the Pakistan Bureau of Statistics, non-basmati rice exports dropped to $827.8 million, marking a 50.8 percent decline compared to last year.
Export volume also fell from 3.15 million tons a year earlier to 2 million tons.
Pakistan’s basmati rice exports saw a comparatively smaller decline.
Basmati exports fell by 6.62 percent to USD 477.7 million, while export volume decreased from 487,278 tons to 436,484 tons.

Pakistan Hit by India’s Action

The Shehbaz government has acknowledged that India is behind this massive setback. As per the reports, the Pakistani Ministry of National Food Security has admitted this and informed the parliamentary committee in two separate meetings held in December and January. In its statement, the government has stated that India’s re-entry into the global market was a major reason for the decline.

India’s increased supply has weakened Pakistani rice in the international market.

Impact of India’s Free Trade Agreements

Pakistani officials told lawmakers that credited India’s free trade agreements with several countries and organizations behind this dominance. Through trade deals with nations and blocs around the world, India has established a strong presence in the global market.

In comparison, it has become difficult for Pakistani exporters to compete. As a result, Pakistan’s exporters are now considering diversifying their markets in order to survive.

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