Rising food exports drive prices up for local consumers

ISLAMABAD: Pakistan’s exports of raw food items have surged by 21.73 per cent in first four months of FY25, reaching $2.36 billion, up from $1.94 billion during the same period last year, according to data from the Pakistan Bureau of Statistics.

Over the course of FY24, raw food exports climbed to $8 billion, a notable increase from $5.8 billion in fiscal year 2023.

This rapid growth in exports has exacerbated the issue of rising food prices across the country, with demand outstripping supply. Despite the ongoing inflation crisis, raw food exports have continued to rise for 15 consecutive months.

Sugar exports showed a remarkable increase during July to October, rising by 413.46 per cent. A total of 187,247 tonnes were exported compared to 33,101 tonnes in same period last year with Afghanistan being the primary destination.

Rice exports have also contributed significantly to the overall boost in food exports, increasing by 52.53 per cent year-on-year to $1.08 billion during the first four months of the ongoing financial year.

Within this, basmati rice exports rose by 47 per cent in quantity and 66 per cent in value, while non-basmati rice saw a 47.78 per cent increase in quantity and a 55.11 per cent rise in value.

This growth was driven by strong demand from regions like EU, Africa, ASEAN and the GCC along with improved export pricing and adherence to international sanitary standards.

However, the rising export figures have come at a cost for locals as price of basmati rice in Pakistan almost tripled over last two years after jumping from Rs150 to Rs400 per kg, making it less affordable for many households.

Meat exports also experienced moderate growth, rising by 4.67 per cent in the first four months of FY25, supported by the expansion of markets, new companies joining the export sector and the approval of additional slaughterhouses for export.

Meanwhile, local meat prices have seen unprecedented hikes, with buffalo meat prices doubling from Rs700 per kg to Rs1,400 over the past three years, and chicken prices also hitting record highs.

The export of vegetables, particularly onions, grew by 36.74 per cent in July-October FY25 compared to the same period last year, while fruit exports rose by 7.02 per cent.

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