Pakistan’s basmati rice industry is finding new momentum in the United States, thanks in part to steep American tariffs on its biggest competitor India.
Figures from the Rice Exporters Association of Pakistan (REAP) show the country shipped 772,725 tonnes of basmati in the 2023–24 fiscal year, earning $876.9 million. That’s a sharp jump from the 595,120 tonnes worth $650.4 million exported the previous year. Average export prices also ticked up, from $1,092.93 per tonne to $1,134.86.
Between November 2023 and October 2024, the US emerged as Pakistan’s single largest basmati buyer, taking 24% of total exports through 1,519 shipments, according to trade tracking platform Volza. Italy followed with 14% (908 shipments) and the UK with 11% (716 shipments).
Data from the US Department of Agriculture (USDA) highlights a steady rise in rice imports over the past three decades from just 7% of the domestic market in 1993–94 to more than 25% in 2022–23. Today, more than 60% of those imports are aromatic Asian varieties: basmati from India and Pakistan, and jasmine from Thailand.
The current opportunity stems from a broader trade dispute between Washington and New Delhi. US punitive measures targeting India’s energy and trade ties with Russia triggered wide-ranging tariffs on several Indian products, from electronics and pharmaceuticals to basmati rice. While some industries eventually secured exemptions, Indian basmati has remained subject to a full 50% duty. Pakistani basmati, in contrast, faces a significantly lower 19% tariff, giving it a clear price edge in the competitive US market.
