Pakistan buying 1 lakh tonnes rice to supply Bangladesh
Pakistan has moved to supply a significant volume of rice to Bangladesh as the Trading Corporation of Pakistan (TCP) issued an international tender to purchase 100,000 tonnes of long-grain white rice (IRRI-6), marking another step in the recent thaw in Dhaka-Islamabad relations.
The tender, dated November 20 and disclosed on Monday, invites separate sealed bids from eligible companies, partnerships and sole proprietors. Bids must be submitted by 11:30am on November 28, with price offers valid for 21 working days.
Key tender conditions
According to the document seen by the Dawn newspaper, the procurement will involve:
Long-grain white rice (IRRI-6) for export to Bangladesh as break-bulk cargo via Karachi ports.
Minimum bid quantity of 25,000 tonnes, in multiples thereof, up to the full 100,000 tonnes, with a permissible ±5% variance.
Rice must be sourced from the latest Pakistani crop, free from odour, mould, insect infestation and other impurities.
Shipment must be possible within 45 days of contract award.
Industry insiders say Pakistan’s move may align with Bangladesh’s increasing appetite for imported rice as Dhaka attempts to stabilise local markets. Bangladesh floated another rice tender today, extending a series of import rounds announced in recent weeks to cool domestic prices.
The development follows a significant improvement in bilateral ties after the political transition in Bangladesh in August 2024. The two countries launched direct government-to-government rice trade in February, starting with a 50,000-tonne shipment.
At the 9th Joint Economic Commission (JEC) meeting last month, Pakistan also offered Bangladesh access to the Karachi Port Trust as a potential trade gateway to China and the Central Asian republics — a notable proposal in broader regional connectivity efforts.
The tender also comes at a time when Pakistan’s rice sector is grappling with a 28% drop in exports during the first quarter of FY26. Exporters have blamed policy bottlenecks and renewed competition from India, which resumed rice shipments in 2024, removed its basmati minimum export price and restored zero-rating on exports.
Despite early concerns, Pakistan maintained stability in high-end markets through late 2024 and early 2025. Meanwhile, a 50% US tariff on Indian goods, imposed in August, has provided Pakistani exporters an unexpected opening in the American market. Data from Volza’s Global Trade platform shows the US accounted for 24% of Pakistan’s basmati exports between November 2023 and October 2024.
Analysts say the TCP tender could help diversify Bangladesh’s import sources and reduce dependence on regional suppliers. Traders told Reuters they believe some of Bangladesh’s recent purchases may ultimately rely on Indian-origin rice, but Pakistan’s latest tender suggests Islamabad is keen to expand its role in Dhaka’s food security pipeline.
With Bangladesh continuing to issue tenders to stabilise prices and Pakistan seeking to revive its export momentum, the latest procurement initiative may become a pivotal step in reshaping rice trade dynamics in South Asia.
Source: Dawn