Pakistan, Malaysia step up efforts to strengthen rice trade

• Malaysia shows interest in purchasing 70,000 t of Pakistani rice
• Malaysia imported over 1.69 mnt of rice in 2024

Pakistan and Malaysia are looking to strengthen bilateral rice trade as demand for Pakistani supplies gains attention ahead of the new crop. The latest engagement is focused on improving market access, meeting quality requirements and developing more consistent trade flows between the two countries, with Malaysia emerging as an important destination for Pakistani rice exporters.

Malaysia remains important market for Pakistan

Malaysia imported around 1.695 million tonnes (mnt) of rice in 2024. Pakistan supplied about 382,000 t making Malaysia an important destination for Pakistani rice exports. The proposed additional purchase of 70,000 t ahead of the arrival of Pakistan’s new crop could provide early-season demand for Pakistani exporters. It could also help strengthen Pakistan’s presence in the Malaysian market following weaker export performance last year.

Pakistan seeks regular rice supply arrangements

Pakistan’s focus is not limited to individual shipments. Exporters are looking to establish a more regular and stable supply arrangement with Malaysian buyers, potentially supporting longer-term contracts and more consistent shipments. The proposed purchase comes ahead of the new Pakistani crop and could provide exporters with an additional outlet during the early part of the new season. Further discussions are expected in November on rice trade and market access.

Potential impact on Asian rice trade

The additional 70,000 t could increase Pakistani rice supplies into Malaysia and add competition among major Asian rice exporters. Higher Pakistani availability could increase competitive pressure on Indian non-basmati rice exports in the Malaysian market. However, the extent of the impact will depend on export prices, availability and the relative competitiveness of supplies from India and Pakistan.

Outlook

Malaysia’s proposed 70,000 t rice purchase could support near-term demand for Pakistani rice ahead of the new crop. Further regular purchases and longer-term supply arrangements could strengthen Pakistan’s presence in the Malaysian market, while potentially increasing competition for Indian non-basmati rice exporters.