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.
Pakistan plans to extend its 9% duty drawback for Basmati exporters beyond June, setting a $750/tonne benchmark that pressures Indian exporters' realisations in West Asia just as Strait of Hormuz trade normalises.