Food Exports Exhibit Impressive 35% Surge in February
Published on: March 17, 2024.
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ISLAMABAD: The export of raw food products witnessed a significant increase of 35.38% in February, reaching $702.46 million compared to $518.87 million during the same month last year. This surge in exports has resulted in higher prices for local consumers.
Despite the highest food inflation in the country’s history, the export of raw food products has continued to grow for the seventh consecutive month in the current fiscal year, according to data compiled by the Pakistan Bureau of Statistics.
This unchecked growth in exports has led to a staggering food inflation rate of 20.2% in February, causing prices of essential goods like wheat flour, rice, onions, sugar, meat, and vegetables to rise. Consequently, consumers with limited finances are facing challenges in accessing these key items.
As the month of Ramazan begins, prices of vegetables such as onions, potatoes, and tomatoes, as well as fruits like bananas, apples, and guava, have reached new heights.
Continuous Growth in Raw Food Exports
The new fiscal year started with a negative growth of 7.56% in the export of raw food products. However, it improved to a positive growth of 4.07% in August. September witnessed a further increase of 60.89%, followed by 59.90% in October, 60.65% in November, 111.63% in December, and 105.29% in January.
During the first eight months of FY24, food exports have grown significantly by 54.05%, amounting to $4.96 billion compared to $3.22 billion in the corresponding period last year.
Impact on Domestic Prices
With the scarcity and rising exports, the prices of onions and bananas have experienced a substantial increase. The price of onions from Sindh has seen the highest rise, surpassing Rs300 per kg. In response to this situation, the caretaker government has imposed a ban on the export of onions and bananas. Commerce Minister Jam Kamal has assured that the ban will be lifted after Ramazan to ensure an adequate domestic supply of these essential commodities during the holy month.
Unprecedented Rupee Depreciation
The surge in food exports can be attributed to the unprecedented depreciation of the Pakistani rupee. Additionally, disruptions in the supply chain and higher prices in the international market have led to an increased demand for food products.
Rice exports from the country have witnessed a significant rise of 85.83% in July-February FY24. The surge in basmati rice exports can be attributed to India’s decision to ban rice exports, resulting in enhanced demand for Pakistani basmati rice.
During July-February FY24, the export of basmati rice has surged by 39.43% to $539.42 million, compared to $386.88 million in the same period last year. Non-basmati rice exports have also increased by 104.37% to $1.97 billion from $967.87 million in the corresponding period last year.
Growth in Meat Exports
Pakistan has experienced a notable growth of 30.16% in meat exports, reaching $333.85 million in 8MFY24 compared to $256.28 million during the same period last year. This growth can be attributed to the introduction of new markets like Jordan, Egypt, the United Arab Emirates, Saudi Arabia, Gulf nations, Malaysia, Uzbekistan. Furthermore, one meat exporting company has gained market access for shipments of heat-treated meat to China.
Price Surge in Domestic Market
Over the past few years, the domestic market has witnessed an unprecedented surge in meat prices. The average price of buffalo meat has increased from Rs700 per kg to Rs1,250 per kg in just two and a half years. The price of chicken has also reached its highest level in the last two years.
Export of Other Food Products
The export of all other food products has increased by 23.27% to $792.14 million in 8MFY24 from $642.62 million in the corresponding months last year. Vegetable exports reached $277.06 million, representing a growth of 39.23%, while fruit exports saw a growth of 13.89% to $246.46 million.
Imports and Rising Prices
In February, Pakistan imported 778,112 tonnes of wheat, marking a significant increase of 194% compared to the same month last year. Similarly, the import of sugar increased by 28.07% to 315 tonnes during February FY24. The average price of sugar in the country is around Rs160 per kg. Additionally, the import bill for tea reached $43,667 million in 8MFY24, up 10.13% from the same period last year.
Source: Dawn
