Rice, the staple diet for over half the world's population, is a critical global commodity, with over half a billion metric tonnes consumed annually, as reported by Al Jazeera.
And in the wake of India's recent suspension of non-Basmati white rice exports, the spotlight shifts to other key players like Thailand, Vietnam, and notably Pakistan, which is emerging as a formidable contender in the rice export arena.
With Pakistan exporting approximately 5 million metric tons of rice in the 2023/2024 period, as stated by Statista, and agriculture driving significant economic growth, as noted by the United Nations Food and Agriculture Organization—marked by a 6.25% increase largely due to a 16.82% rise in key crops, including rice—the country's impact on global rice trade is both vital and expanding.
However, for businesses in Pakistan looking to tap into this lucrative export market, understanding the nuances of the industry is crucial. So, how do you navigate this competitive sector effectively?
Overview of Pakistan's rice industry
Pakistan stands as a pivotal player in the global rice market, consistently ranking among the top ten rice producers worldwide. Notably, while it is the ninth-largest rice producer, Pakistan secures the fourth position in global rice exports, trailing only behind India, Vietnam, and Thailand, according to DAWN.
Types of rice exported from Pakistan
Cultivating a diverse array of rice types, Pakistan also manages to cater to various culinary tastes and export demands. These include the aromatic Basmati, the high-yield IRRI, and the cold-tolerant varieties known for their bold and short grains, as detailed by the Trade Development Authority of Pakistan. And Kainat Basmati, the primary Basmati variety exported, holds a significant share in the international markets.
In contrast, non-Basmati rice also forms a substantial portion of the exports, with shipments reaching 463,035 metric tonnes valued at over a quarter of a million in April 2024 alone, according to the Tribune. This diversity not only underscores Pakistan's versatility in rice production but also highlights its critical role in bolstering global food security and driving economic growth within the country.
Which countries import rice from Pakistan?
Pakistan's rice also finds its way across the globe, with significant export markets in Africa, the Far East, and more, according to S&P Global.
The United Kingdom, Belgium, Italy, the Netherlands, and Spain are also prominent importers of Pakistan’s brown rice, while nations like China, Kenya, Mozambique, Somalia, and Benin are key markets for Pakistani IRRI varieties.
Furthermore, Pakistan’s aromatic Basmati rice is highly sought after in the UAE, Kazakhstan, Saudi Arabia, Oman, Kenya, and Somalia, highlighting the global demand for this staple, as reported by the Trade Development Authority of Pakistan.
How to export rice to other countries from Pakistan
Navigating the export landscape for Pakistani rice involves a detailed understanding of various regulatory and operational steps.
Here’s a concise overview to get you started.
Regulatory landscape for rice export
Exporting rice from Pakistan is governed by a series of legal requirements, each aimed at standardizing operations and ensuring compliance with both local and international standards:
- Company Registration: The first step involves registering your business, which is crucial for any commercial activity.
- Tax Registration: Obtain a National Tax Number (NTN) and Sales Tax Registration Number (STRN) from the Federal Board of Revenue (FBR), essential for tax purposes.
- Chamber of Commerce Membership: Membership is required for networking and legitimacy.
- WEBOC Registration: Essential since 2011, WEBOC (Web Based One Customs) registration is necessary for managing exports and imports documentation and clearances.
- SECP Registration: Registering with the Securities and Exchange Commission of Pakistan (SECP) solidifies your business's credibility.
- REX System: For exports to the European Union, registration in the REX system is required to facilitate trade under preferential tariff schemes.
Beyond these initial steps of registering your business, you will also have to comply with the required export procedures and provide the necessary documentation to facilitate a smooth export of rice from Pakistan.
Here's a breakdown of the documents you'll need for seamless customs clearance of your goods:
- Country-specific certificates: Different certificates of origin are required depending on the destination. Pakistan's trade agreements might necessitate compliance with specific trade protocols to benefit from reduced or zero duty rates. This includes both generic and country-specific certificates.
- Bill of Lading: This is a crucial document in international shipping, including inland, ocean, and air bills of lading. It serves as a contract of carriage and, in some cases, a document of title detailing the terms under which the goods are transported.
- Inland Bill of Lading: Acts as a receipt for the goods picked up for shipment.
- Ocean Bill of Lading: Can be either 'straight' (non-negotiable) or 'negotiable,' affecting how possession of the goods is transferred.
- Airway Bill: Used for air shipments, non-negotiable, and acts as a contract of carriage.
- Documents for clearing agents: Once the goods are ready for export, you'll need to provide several documents to your clearing agent to facilitate customs clearance:
- Packing list: Details the contents of the shipment, which is used by freight forwarders, banks, and customs officials.
- Commercial invoice: Lists the goods being exported along with pricing.
- Goods Declaration (GD): This is a detailed customs declaration filled out via Pakistan's WEBOC system.
- Letter of Credit (L/C): Often required by banks to facilitate payment.
- Certificate of Origin: Issued by the Chamber of Commerce to verify the origin of the goods. An electronic Certificate of Origin (eCO) is recommended for efficiency and credibility.
Customs officials use the Goods Declaration and Packing List to verify and inspect shipments, making sure that all documentation aligns with the physical goods exported.
Quality assurance and testing
Ensuring the quality of exported rice is paramount for maintaining market reputation and compliance with international standards.
This is especially so with increasing scrutiny from regions like the European Union, the United Kingdom, and the United States concerning food safety. This makes rigorous quality checks more crucial than ever in preventing shipment rejections due to non-compliance with the destination countries' sanitary and phytosanitary standards.
Here's how quality is managed and assured:
- Certification protocols: Obtaining certification from the Pakistan Standards and Quality Control Authority (PSQCA) is essential for exporters. This certification not only asserts compliance with international quality benchmarks but also significantly boosts the rice's acceptability across global markets. The PSQCA certification process involves detailed testing and stringent quality assurance measures to ensure that the rice exported from Pakistan meets or exceeds international standards.
- Third-party inspections: Companies like HAS Rice Pakistan engage independent third-party services, such as SGS and Bureau Veritas, to perform inspections. These inspections help verify the quality and quantity of rice, providing a layer of trust and transparency for international buyers.
- Regulatory compliance: The Rice Exporters Association of Pakistan (REAP) plays a crucial role in interfacing with government bodies like the Ministry of Commerce and the Ministry of Food, Agriculture, and Livestock to ensure that all exports comply with both local and international phytosanitary regulations.
- Packaging and safety measures: Once the quality checks are cleared, the rice is carefully packed using methods like palletization or crating to safeguard the cargo during transportation. This step ensures that the rice remains secure and intact from the warehouse to its final destination.
Packaging, labeling, and shipping
Effective packaging and shipping are key for a successful international rice export process, ensuring product integrity from farm to table.
Choosing the right packaging materials:
- Jute bags: Ideal for traditional packaging, jute bags are breathable and cost-effective, making them suitable for shorter transit times.
- Polypropylene bags: These are preferred for their strength and moisture resistance, which are crucial for maintaining the quality of rice during longer shipments.
Labeling requirements:
- Proper labeling is crucial for compliance with international shipping regulations. Labels must include net weight, country of origin, quality grade, and any handling instructions to ensure the rice remains intact throughout its journey.
Shipping options:
- Bulk shipping: Often used for large shipments, bulk shipping is cost-effective but may require additional logistics for loading and unloading.
- Containerized shipping: Offers better protection for the rice and is suitable for high-quality or premium varieties. Containers are available in several types, such as:
- Standard containers: Most common, used for a majority of shipments.
- High cube containers: Provide extra volume, suitable for lighter, bulkier shipments.
- Open top and flat rack: For cargo that needs loading from the top or sides.
- Each container must be inspected before use to ensure it is free from damage and suitable for protecting the rice during transport.
Compliance and coordination:
- It is crucial to ensure that the packaging complies with the import regulations of the destination country. Engaging with the buyer to finalize packaging details can help tailor the approach to meet specific market needs.
- The weight listed on the packing list and bill of lading should match the actual weight to avoid discrepancies during customs clearance.
Partnering with DHL Express for efficient rice export
When it comes to exporting rice from Pakistan, aligning with a logistics partner that understands the intricacies of food product shipping is crucial.
DHL Express stands out as a premier choice for rice exporters, offering robust services tailored to the agricultural sector. With extensive experience in handling perishable goods, DHL Express ensures that rice shipments are managed with the utmost care and expertise.
Key benefits of shipping internationally with DHL Express:
- Temperature-controlled solutions: DHL Express provides state-of-the-art temperature-controlled logistics to maintain the quality of rice during transit. This is essential for preserving the sensory and nutritional qualities of rice, especially when shipped to distant markets.
- Global network: Leveraging a vast global network, DHL Express facilitates rice exports to a wide range of international markets efficiently.
- Fast Transit Times: Speed is of the essence in the export business, and DHL Express excels in delivering shipments faster than conventional shipping methods.
By partnering with DHL Express, rice exporters in Pakistan can enhance their operational efficiencies, ensuring their products arrive on time and in optimal condition. This collaboration not only supports maintaining export quality but also bolsters Pakistan's reputation as a leading rice supplier in the global market.
