Rice Exporters Get Major Relief as Govt Raises Export Incentive

The federal government has increased the Duty and Tax Remission for Exports (DLTL) incentive for non basmati rice exports from 3 percent to 5 percent, providing additional support to exporters amid growing competition in global markets.

The decision was approved during a meeting of the Export Development Fund (EDF) after representations by the Rice Exporters Association of Pakistan (REAP). The government, however, retained the existing 9 percent DLTL incentive for basmati rice exports.

REAP had requested the government to extend the DLTL scheme for both 90 day export periods and increase the non basmati incentive to 9 percent, bringing it in line with basmati rice. While the request was only partially accepted, the association welcomed the increase, saying it would improve the competitiveness of Pakistani rice in international markets.

According to REAP, Pakistani rice exporters have been facing stiff competition from India, where both basmati and non basmati rice are currently available at lower prices. The higher incentive is expected to help exporters secure additional orders and maintain their presence in key export markets.

The association also said stronger exports could encourage higher rice cultivation in the coming season, improve farmers’ incomes, and contribute to Pakistan’s foreign exchange earnings.

Pakistan is among the world’s leading rice exporters, with rice remaining one of the country’s largest agricultural export commodities and an important source of export revenue.