Rice drives raw food exports to $4.6bn

ISLAMABAD: Pakistan’s raw food exports rose 8.17 per cent to $4.62 billion during the first seven months of the current fiscal year compared to $4.26bn in the corresponding period last year, mainly driven by a significant rise in rice shipments.

The exports have risen for 18 consecutive months despite unprecedented food inflation in the country’s history.

As a result, consumers nationwide are paying higher prices for food items because of supply and demand gaps.

Official figures compiled by the Pakistan Bureau of Statistics showed that rice has significantly boosted overall food exports.

In the first seven months of the current fiscal year, rice shipments rose by 3.73pc year-on-year to $2.19bn in value from $2.12bn last year.

Rice shipments rise 3.7pc to $2.19bn in July-Jan

The product-wise details show that the quantity of basmati rice shipments rose by 22.04pc to 487,221 tonnes year-on-year and its value by 11.98pc to $511.59m.

Exports of non-basmati rice increased 1.46pc in value to $1.68bn and 7.72pc in quantity to 3.15m tonnes in the first seven months of the current fiscal year.

New markets, such as Bangladesh, were opening up for Pakistani rice, further 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.

According to the PBS data, in the first seven months, sugar exports reached 757,597 tonnes, compared to 33,101 tonnes in the same months last year, showing an increase of 2188pc.

Millers have mainly exported sugar to Afghanistan. The price of sugar in the domestic market has also seen an unprecedented rise.

Meat exports increased by 2.60pc in 7MFY25 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 Rs1,400. The price of chicken has also experienced an unprecedented surge, reaching its highest level over the last three years.

Exports of vegetables have recorded a negative growth of 18.14pc in July-Jan FY25 from a year ago, mainly due to a drop in exports of onions, potatoes, and tomatoes. The export of fruits declined by 0.24pc during the months under review. The export of fish and fish products record a paltry growth of 1.25pc during the months under review.

Published in Dawn, February 19th, 2025