Global Rice News

Food Exports Double Amidst Rising Inflation: A Wake-Up Call for Policymakers

In a surprising turn of events, food exports in Pakistan have doubled in the last month, painting a picture of stark contrast against the backdrop of crippling inflation. This exponential growth highlights a concerning absence of holistic planning skills among policymakers. What adds more fuel to the fire is the fact that food prices have simultaneously risen by almost 29% during the same period. While the government may attribute this surge in export value to rupee devaluation, the reality is more nuanced.

It is true that the devaluation of the rupee has played a role in boosting export earnings. However, news reports suggest that export quantities have also witnessed a significant increase. This implies that the government consciously allowed local supplies to deplete, leading to a surge in prices within the domestic market. Such a move raises questions about the priorities of the policymakers and the impact on the average citizen.

It is interesting to draw a comparison with India, which chose to halt almost all rice exports after a poor crop last year resulted in reduced supplies and higher domestic prices. Unintentionally, this move by India has created a higher demand for Pakistani rice, leading to a staggering 77% increase in exports during the current fiscal year. On a similar note, meat exports from Pakistan continue to soar, despite a doubling in domestic prices over the past two years. While the government should focus on addressing the rising domestic prices, it seems more concerned with capitalizing on the opportunity created by India’s export restrictions. It is important to mention that India is a major meat exporter itself, but the industry faces obstacles due to pressures from local cow protection activists and vigilantes.

Adding to the complexity of the situation, the United Nations’ Food and Agriculture Organization reports that global food prices have actually decreased by 10% in 2023. This debunks any claims that rising domestic prices are solely a result of international price trends. Instead, flawed policymaking and profiteering are the true culprits. The pursuit of export revenue has led Pakistan down a treacherous path, resulting in the inflationary crisis we witness today. It is high time for policymakers to shift their focus from food exports and prioritize domestic food security and price stability. Valuable lessons can be learned from responsible planners in other countries who have successfully navigated similar challenges.

While exports can be justified during times of surplus to regulate prices, it is essential to ensure that the nation’s food security is not compromised. Using food as a means to earn export revenue is ultimately counterproductive if it undermines the well-being of the local population.

Source: [The Express Tribune](https://tribune.com.pk)