Pakistan's 9% duty drawback threatens India's Basmati pricing power in West Asia
Islamabad's plan to extend its 9% export drawback past June anchors a $750/tonne benchmark, undercutting Indian exporters who realised $920/tonne in April 2026. India shipped 474,091 tonnes worth $436.01M in April; FY26 run-rate sits at 6.52mt and $5.67bn. Pakistan's 1mt base now squeezes margins as Hormuz trade normalises.
What happened
Indian Basmati Exporters · Pakistan plans to extend its 9% duty drawback for Basmati exporters beyond June, setting a $750/tonne benchmark that pressures Indian
Key facts
- 9% drawback
- $750/tonne benchmark
- $920/tonne April 2026 realisation
- 474,091 tonnes April exports
- $436.01 million
- 6.52 mt FY26
- $5.67 billion
- 1 mt Pakistan exports
Why this matters
Scout bolt-on acquisitions of premium basmati brands or West Asia distribution assets to insulate pricing power from Pakistan's subsidy-driven commodity undercut.