Rising Food Exports Drive Up Prices, Burdening Domestic Consumers
Published on: July 3, 2024.
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Rice Exports Surge as Pakistan Confronts Highest-Ever Inflation
The Ministry of Commerce announced on Tuesday that despite record-breaking inflation, raw food exports in Pakistan have risen by 37% in FY24 compared to the previous fiscal year. According to data compiled by the Trade Development Authority of Pakistan (TDAP), the value of raw food exports reached $8 billion in 2023-24, a significant increase from $5.8 billion in the same period last year.
The surge in raw food exports has resulted in higher prices for food items nationwide, as supply and demand gaps continue to affect consumers. Surprisingly, raw food exports have seen growth for 11 consecutive months, despite the exceptionally high food inflation rates.
Rice exports have experienced a substantial increase of 78.26% to $3.8 billion during FY24, compared to $2.17 billion in FY23. This growth can be attributed to Pakistan’s strong performance in the EU, Africa, the ASEAN region, and GACC countries, along with the implementation of a Minimum Export Price and improved compliance with Sanitary and Phytosanitary standards.
One of the key factors behind the surge in basmati rice exports from Pakistan is India’s decision to ban rice exports to protect the interests of its domestic consumers. India also imposed a ban on non-basmati rice exports by the private sector and implemented a 20% export tariff on parboiled rice to combat inflation. As a result, Pakistan’s non-basmati rice exports have significantly benefitted from this situation.
In addition to rice, meat exports have witnessed a 17.66% increase to $507 million in FY24, compared to $431 million in the same period the previous year. This growth can be attributed to the opening of new markets, increased participation of meat exporting companies, and the approval of additional slaughterhouses.
The export of sesame seeds has also seen remarkable growth, reaching $410 million in FY24, compared to $151 million in the corresponding period of the previous year. Increased production in 2023 and a higher demand from countries like China, South Korea, and Japan have contributed to this positive growth.
Other notable increases in export figures include maize (121% surge to $421 million), onions (4,024% surge to $224 million), mangoes (12.74% increase), and spices (7.8% increase).
Zubair Motiwalla, the Chief Executive of TDAP, highlighted the efforts being made to address supply chain issues in the agro sector. Motiwalla also mentioned the opportunities created by the opening of the Chinese market for Pakistani meat exports and the recent approval for the export of inland fisheries (aquaculture). With these advancements, it is believed that Pakistan is on track to achieve its $10 billion target in exports by 2024-25.
Sources: Dawn
