ISLAMABAD: Pakistan’s raw food exports rose 4.17 per cent to $5.17 billion during the first eight months of the current fiscal year compared to $4.96bn in the corresponding period last year, mainly driven by a significant rise in sugar and rice shipments.
The exports have risen for 19 consecutive months despite unprecedented food inflation in the country’s history. Consumers nationwide are paying higher prices for food items, especially sugar, because of supply and demand gaps.
In June 2024, the government announced a policy allowing the export of 150,000 tonnes of sugar, conditional upon maintaining stable retail prices. However, this target was significantly surpassed, with sugar exports reaching 757,779 tonnes by February.
According to data from the Pakistan Bureau of Statistics (PBS), the monthly export figures were as follows: 39,158 tonnes in July, 46,990 tonnes in August, 51,452 tonnes in September, 49,643 tonnes in October, 166,283 tonnes in November, 279,273 tonnes in December, 124,793 tonnes in January, and 180 tonnes in February.
This was the second time the current coalition government allowed sugar exports, which resulted in increased retail prices, further fuelling inflation. The retail price of sugar in the domestic market is hovering around Rs180 per kg.
In FY23, the government led by the PML-N allowed the export of a substantial quantity of 212,896 tonnes of sugar in three months.
Due to large-scale exports, the sugar’s average retail price rose to Rs136 per kg in May 2023 and Rs195 per kg in September 2023. Before the cane-crushing season began, the sweetener price surged to Rs230 per kg in major cities.
Millers have mainly exported sugar to Afghanistan.
Official figures compiled by the Pakistan Bureau of Statistics showed that rice has significantly boosted food exports.
In the first eight months of the current fiscal year, rice shipments slightly declined by 1.13pc year-on-year to $2.48bn in value from $2.52bn last year due to a decline in non-basmati rice exports.
The product-wise details show that the quantity of basmati rice shipments rose by 20.80pc to 570,532 tonnes year-on-year and its value by 11.23pc to $ 599.96 million.
Exports of non-basmati rice dipped 4.79pc in value to $1.88bn and 3.47pc in quantity to 3.58m tonnes in 8MFY25.
New markets like Bangladesh brightened the scope for higher rice shipments, underscoring the sector’s growth potential. The rice sector is a major contributor to Pakistan’s exports, especially in the European Union (EU) and the United Kingdom (UK).
Due to sustained export growth over the past two years, the average price of basmati rice has surged to Rs400 per kg from Rs150, restricting buying from domestic consumers.
Meat exports increased by 1.98pc in 8MFY25 compared to the corresponding period of the previous year. The opening of new markets, participation of new companies in meat exports and approvals for additional slaughterhouses have contributed to this growth.
Meat prices in the domestic market have experienced an unparalleled surge in recent years. In the past three and a half years, the average cost of buffalo meat has jumped from Rs700 per kg to Rs1,500. The price of chicken has also experienced an unprecedented surge (Rs500 to Rs700 per kg), reaching its highest level over the last three years.Exports of vegetables have recorded a negative growth of 17.92pc in 8MFY25 from a year ago, mainly due to a drop in exports of onions, potatoes, and tomatoes. The export of fruits declined by 3.78pc during the months under review. The export of fish and fish products record a paltry growth of 0.75pc during the months under review.
Published in Dawn, March 19th, 2025
