The govt reduces the minimum export price of rice to improve competitiveness

Federal Commerce Minister Jam Kamal Khan on Sunday directed for immediate withdrawal of Minimum Export Price (MEP) on rice, put in place since 2023. A statement issued by the Ministry of Commerce was made after it sought a request from the Rice Exporters Association of Pakistan (REAP). MEP was introduced by the Ministry of Commerce last year to override pressures due to an international rise in the rates of rice and India’s full ban on the rice exports.

But with the international rice prices now receding and India lifting its export ban, the MEP has now become a hurdle for Pakistani rice exporting firms to effectively compete in international markets. Abolishing the MEP would facilitate Pakistani exporters to participate in international tenders more effectively and higher-size contracts in their favor. It is expected that rice exports are going to increase drastically in the country. Analysts are of the view that the country’s rice export revenues can touch up to $5 billion in the current financial year.

REAP has welcomed this decision with open arms, saying that the most important task at hand for now will be for Jam Kamal Khan to revive Pakistan’s rice export industry and further improve the country’s stake in the global rice market.