Pakistan’s food exports have seen a growth of 4.17% during the first eight months of the current fiscal year to $5.17 billion from $4.96 billion during the corresponding period of the previous year. The growth is largely because of a steep increase in sugar and rice exports. This has also resulted in increased food prices in the local market.
Sugar Exports and Increasing Prices
The government authorized the export of 150,000 tonnes of sugar in June 2024, subject to the condition that retail prices stayed constant. The exports, however, surpassed the limit, amounting to 757,779 tonnes by February. This has led to a sharp increase in domestic sugar prices, which currently stand at around Rs180 per kg.
From July to February, sugar exports were as follows:
July: 39,158 tonnes
August: 46,990 tonnes
September: 51,452 tonnes
October: 49,643 tonnes
November: 166,283 tonnes
December: 279,273 tonnes
January: 124,793 tonnes
February: 180 tonnes
The government has permitted two sugar exports, which have raised prices. Sugar was Rs136 per kg in May 2023, but by September 2023, it had risen to Rs195 per kg. Prices even touched Rs230 per kg before the onset of the cane-crushing season. The majority of the exported sugar went to Afghanistan.
Rice Exports and Their Impact
Exports of rice fell slightly by 1.13% to $2.48 billion based on fewer non-basmati rice shipments. Nevertheless, exports of basmati rice were up:
Quantity: Up 20.80% to 570,532 tonnes
Value: Up 11.23% to $599.96 million
Exports of non-basmati rice declined by 4.79% in value to $1.88 billion and 3.47% in volume to 3.58 million tonnes. Bangladesh has opened new markets for increased rice exports. This has impacted local consumers, with the basmati rice price increasing from Rs150 per kg to Rs400 per kg in the past two years.
Meat Exports and Price Rise
Meat exports increased by 1.98% because of new markets, increasing numbers of exporting companies, and extra slaughterhouses. Nevertheless, local meat prices have risen through the roof. In the past three and a half years:
Buffalo meat: From Rs700 per kg to Rs1,500 per kg
Chicken: From Rs500 per kg to Rs700 per kg
Fall in Vegetable and Fruit Exports
Exports of vegetables decreased by 17.92% owing to declining exports of onions, potatoes, and tomatoes. Exports of fruits also decreased by 3.78%. Fish and fish product exports improved modestly by 0.75%.
Conclusion
As food exports by Pakistan keep increasing, they are also having the effect of increasing prices for domestic consumers. Higher sugar, rice, and meat prices are boosting the price of basic foodstuffs, eroding household budgets across the country. The government might need to reconcile export policy with home price stability to benefit economic growth and consumer affordability.
