Global Rice News

ISLAMABAD: The export of raw food products has been steadily increasing for the sixth consecutive month in the current fiscal year, resulting in higher prices for local consumers. According to data compiled by the Pakistan Bureau of Statistics, the value of food exports more than doubled to $787.36 million in January 2024, a significant increase of 105.29% compared to the same month last year.

The new fiscal year started with a negative growth rate of 7.56%, but it improved to a positive growth rate of 4.07% in August. Since then, export proceeds have continued to grow, increasing by 60.89% in September, 59.90% in October, 60.65% in November, and a staggering 111.63% in December.

However, the surge in exports has led to unchecked food inflation, which reached a startling 27.4% in January. This has resulted in higher prices and limited access to essential goods such as wheat flour, rice, sugar, meat, and vegetables. Food inflation in Pakistan has averaged 29% since October 2023.

The proceeds from food exports have jumped 58% to $4.29 billion in the first seven months of the current fiscal year (July-January). This significant increase can be attributed to the unprecedented depreciation of the Pakistani rupee. Additionally, disruptions in the global supply chain and higher international prices have further fueled the demand for food products.

The data from the Pakistan Bureau of Statistics reveals that rice exports from the country have surged by 95.26% in the current fiscal year. Basmati rice, which had been experiencing a decline in exports, saw a notable increase of 35.59% compared to the previous year. The export of basmati rice reached $456.94 million in the July-January period of the current fiscal year, compared to $337 million in the same period last year. The ban on rice exports imposed by India has played a crucial role in driving up the export of basmati rice from Pakistan.

Furthermore, the export of non-basmati rice has increased by 122.21% to $1.65 billion in the July-January period of 2023-24, compared to $746.43 million in the same period last year. The sustained surge in export figures over the past two years has led to a significant rise in the average price of basmati rice, which has now reached Rs390 per kg. This increase has impacted domestic consumers, limiting their purchasing power.

In addition to rice, Pakistan has also seen a growth in meat exports, which have increased by 27.01% in the current fiscal year. The country exported meat worth $288.14 million in the first seven months, compared to $226.86 million in the previous year. This increase can be attributed to the opening of new markets such as Jordan, Egypt, and Uzbekistan. Pakistan has also gained market access for meat shipments to China, and several new enterprises are registering to export meat to the United Arab Emirates, Saudi Arabia, and other Gulf nations.

The prices of meat in the domestic market have experienced an unprecedented surge in recent years. Buffalo meat prices have risen from Rs700 per kg to Rs1,250 per kg in just two and a half years. Similarly, chicken prices have reached their highest level in the past two years.

The export of other food products has seen a 23% increase in the first seven months of the current fiscal year, reaching $701.35 million compared to $566.29 million in the same period last year. The export of vegetables alone reached $72.947 million, a significant increase from $40.466 million in the corresponding period of the previous year.

On the import side, Pakistan imported 613,147 tonnes of wheat in January, representing a 6.67% increase from the corresponding month of the previous year. This comes despite the government’s claims of having a bumper wheat crop. The import of sugar also experienced a 26.12% increase, with 441 tonnes imported in January 2024 compared to 316 tonnes in the same month last year. The average sugar price in the country is approximately Rs160 per kg.

Source: [Dawn](https://www.dawn.com){: target=”_blank” rel=”nofollow”}