Pakistani rice prices rise on strong Philippine demand, local buying

Pakistani rice prices are rising, supported by strong buying interest from the Philippines and increased local procurement following the Eid holidays, sources told Platts, part of S&P Global Energy, on June 5.

Market participants said the rally accelerated after Eid, as exporters secured fresh business from the Philippines while local buyers increased purchases, tightening available supplies and pushing offers higher.

The recent surge in demand marks a reversal from subdued trading in previous months, when geopolitical uncertainty and competition from India weighed on Pakistani export activity. Sources said fresh inquiries from the Philippines have supported the market at a time when Pakistan is approaching the end of its current crop season and export supplies are becoming more limited.

Market sources in Karachi estimated that about 70,000-75,000 metric tons of rice has been booked for shipment to the Philippines through June, with several vessels currently loading at Karachi port.

Pakistan is also working to fulfill orders from other Southeast Asian buyers, such as Malaysia and China. Some sources said the Philippines is already inquiring about July shipments, though no confirmed trades have been reported yet.

Higher offers

Several exporters from Pakistan observed that although the Philippines typically prefers Vietnamese rice, the current lack of competitive pricing from Vietnam has prompted buyers to seek alternatives from Pakistan and India, leading them to move away from their traditional supplier.

"Even though Indian rice is available at lower prices, the Philippines has shown interest in Pakistani supply," a Pakistani exporter said. "This presents a valuable opportunity for us, especially given the prolonged period of weak international demand."

The exporter said Philippine buyers are seeking a 45-kett level of 5% WR, which commands a premium of $10-$12/mt over standard 5% WR due to the extra milling required to meet quality standards.

"This surge in demand from the Philippines has set Pakistani prices on fire," the Pakistani exporter said.

Platts assessed Pakistani 5% broken white rice at $385/mt FOB June 5, up $31/mt week on week and $40/mt month over month. Despite the recent rally, the grade remained at a $19/mt discount to Vietnamese 5% broken white rice.

Competing origins

Buyers in Manila, however, also said that Vietnam will continue to remain a traditional supplier for the Philippines due to experience and taste preferences.

A Philippines-based rice importer confirmed fresh buying interest in Pakistani rice for June shipments. However, the importer also said that Pakistani rice has yet to build the strong customer loyalty that Vietnamese rice has in the Philippines, and that buyers remain attached to established varieties and brands, limiting the scope for a substantial shift in purchasing patterns.

Vietnam will continue to remain the preferred origin, despite this temporary shift in buying by the Philippines.

"Vietnam remains the preferred origin for many buyers because of taste and more convenient logistics. If prices narrow, demand could shift back from Pakistan to Vietnam," another Philippines-based importer said. "India would be a good choice to buy if the price is significantly lower."

Meanwhile, Indian 5% broken white rice was assessed at $341/mt FOB, placing Pakistani rice at a $44/mt premium to Indian-origin rice.

Exporters believe Pakistani rice prices will remain firm through the remainder of the crop cycles, particularly if the demand from the Philippines continues and local buying remains active. With the current crop nearing its end, the next harvest is not expected until late August or September.

Pakistan is expected to export 4.90 million mt in MY 2026-27 (November-October), about an 11% increase from last year, according to S&P Global Energy CERA analysts.