Food exports from Pakistan climb 112% in December, fueling domestic price increases

In December, Pakistan witnessed a significant 111.63 percent increase in the export of raw food products, a development that has led to higher domestic prices for consumers.

According to data from the Pakistan Bureau of Statistics (PBS), this rise in exports contributed to a sharp 28.8 percent spike in food inflation in December 2023, impacting the affordability of basic items like wheat flour, rice, sugar, meat, and vegetables.

The export of food products has been on an upward trajectory since October 2023, with a notable 49.84 percent growth in the first half of the fiscal year 2023-24, reaching $3.48 billion, up from $2.32 billion in the same period last year.

This surge is partly attributed to the significant depreciation of the Pakistani rupee and increased international demand due to supply chain disruptions and higher global market prices.

Rice exports have been a major contributor to this trend, showing a 76.53 percent increase in the July-December period of FY24, driven primarily by a rise in basmati rice exports, which jumped 30.03 percent to $367.39 million from $282.53 million in the previous year.

The export of non-basmati rice also saw a substantial increase of 96.88 percent to $1.64 billion. India's recent ban on rice exports is seen as a key factor behind this increase.

Domestically, the surge in exports has led to a significant rise in the price of basmati rice, now at Rs380 per kg, up from Rs150 two years ago, limiting its affordability for local consumers.

Meat exports have also grown by 24.90 percent to $239.71 million in the first half of FY24, with Pakistan exploring new markets like Jordan, Egypt, and Uzbekistan, and gaining new export opportunities to China, Malaysia, the UAE, Saudi Arabia, and other Gulf countries.

This export growth has had a noticeable impact on domestic meat prices. In two years, the price of buffalo meat has escalated from Rs700 per kg to Rs1,250 per kg, with chicken prices also reaching record highs.

Fruit exports increased by 9.31 percent to $171.28 million in the first half of FY24, while the export of all other food products rose by 22.62 percent to $616.81 million.

However, fish and fish product exports experienced a decline of 11.63 percent, totaling $199.02 million in the same period.