One of Pakistan’s most prizes basmati rice crop has suffered a significant blow, as disastrous floods have decimated approximately 20 percent of the output in Punjab. World prices of basmati have already increased by approximately $50 a ton and the losses are huge to both the Middle East and the U.S. since Pakistan and India are the largest producers of basmati rice globally.
Traders caution that the prices may soar higher due to the tightening of supply, and recovery may depend on how the next harvest stabilizes. The failure poses a risk to the livelihoods and export earnings of farmers in Punjab, who face a time when the aromatic grain is in high demand.
