Global Rice News

Export of Raw Food Products Soars, Leading to Higher Prices for Domestic Consumers

The export of raw food products from Pakistan has seen a significant increase, resulting in a surge in prices for domestic consumers. In October alone, food inflation reached a staggering 29%, impacting the accessibility of essential commodities such as wheat flour, rice, sugar, meat, and vegetables. The Pakistan Bureau of Statistics (PBS) reports that food exports grew by 30.29% in the first four months of the fiscal year 2023-24, amounting to $1.944 billion compared to $1.492 billion in the corresponding period last year.

Various factors have contributed to this surge in food exports. The unprecedented depreciation of the rupee, along with disruptions in the supply chain and higher international prices, has created a soaring demand for food products. Rice exports, in particular, have witnessed a significant growth of 30.12% in July-October FY24, driven by the demand for basmati rice. Basmati rice exports have experienced a notable surge of 23.13%, reaching $225.56 million compared to $183.18 million in the same period last year.

One key factor behind the surge in basmati rice exports is India’s decision to impose a ban on rice exports. As a result, Pakistan has become a major exporter of the prized grain. According to PBS data, the export of non-basmati rice has also increased by 33.64% to $485.22 million in July-October 2023-24.

Meat exports have also seen significant growth, with a rise of 18.77% in 4MFY24. This increase can be attributed to the opening of new markets like Jordan, Egypt, and Uzbekistan. Several new enterprises have also registered to export meat to the United Arab Emirates, Saudi Arabia, and other Gulf nations. Malaysia has approved three additional slaughterhouses for export and processing, and one meat exporting company has been granted market access for shipments to China.

The prices of meat in the domestic market have witnessed an unprecedented surge in recent years. Buffalo meat, in particular, has seen an increase from Rs700 per kg to Rs1,200 per kg in just two years. Chicken prices have also reached their highest level in the last two years.

Sugar exports have experienced a significant increase, with figures reaching 248,854 tonnes from February to August. However, the Economic Coordination Committee imposed an export ban from August 10 due to the skyrocketing retail price of sugar, reaching an all-time high of Rs200 per kilogram.

The export of fruits has also seen a growth of 13.53% in the first four months of FY24, and the export of other food products has increased by 13.88%.

Pakistan continues to be a major player in the global food export market, benefiting from the depreciation of the rupee and increased demand. However, the surge in exports has led to higher prices for domestic consumers. As the government and stakeholders work to address these challenges, it is essential to find a balance that ensures both export growth and affordability for the local population.

Source: Dawn