December sees a remarkable 112% surge in food exports
Published on: January 22, 2024.
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Export of Raw Food Products Soars, Leading to Price Surge in Pakistan
ISLAMABAD: The export of raw food products from Pakistan has experienced a significant increase, resulting in a surge in prices for domestic consumers. In December 2023, food inflation reached a staggering 28.8%, impacting the accessibility of essential commodities such as wheat flour, rice, sugar, meat, and vegetables. This rise in prices can be attributed to the unchecked exports and the depreciation of the rupee.
The export of food products grew by 49.84% in the first half of fiscal year 2023-24, reaching $3.48 billion. This surge can be attributed to disruptions in the supply chain, higher international prices, and the depreciation of the rupee. Rice exports have particularly seen significant growth, with basmati rice exports rising by 30.03% to $367.39 million. This surge is due to India’s ban on rice exports, creating an opportunity for Pakistani exporters.
Non-basmati rice exports also experienced a substantial increase of 96.88% to $1.64 billion. The sustained surge in export figures over the past two years has led to a surge in average basmati rice prices, reaching Rs380 per kg from Rs150. This increase in prices has limited the purchasing power of domestic consumers.
Pakistan’s meat exports have also seen significant growth, with a 24.90% increase in the export value. New markets like Jordan, Egypt, and Uzbekistan have contributed to this growth, with more enterprises registering to export meat. The prices of meat in the domestic market have also experienced a surge in the past two years, with buffalo meat prices increasing from Rs700 per kg to Rs1,250 per kg.
The export of fruits has increased by 9.31%, amounting to $171.28 million in the first half of fiscal year 2023-24. Additionally, the export of all other food products has grown by 22.62% to $616.81 million.
Despite the growth in food exports, it is important to address the impact on domestic consumers. The surge in prices for essential commodities has made them less affordable. Efforts should be made to stabilize prices and ensure accessibility for the local population.
Source: Dawn
