KARACHI: Food import bill plunged by 10 per cent in the first eight months (July-February) of this fiscal year (FY14) on the back of reduced prices of some items in world markets and rise in local crop production.

Total imports of food items declined to $2.7 billion during the eight months from $3.03bn in the same period of last fiscal (FY13).

Major fall of 27pc came in tea imports to $193 million (87,389 tonnes) compared to $263m (87,280 tonnes).

However, imports of dry fruits and nuts, spices, milk, cream and milk food for infants and sugar recorded increase.

According to import figures released by the Pakistan Bureau of Statistics (PBS), import of pulses fell by 22.5pc to $186m (295,503 tonnes) compared to $240m (338,870 tonnes).

Soya bean and palm oil imports suffered 20pc and 13pc drop, falling to $37m (35,623 tonnes) and $1.22bn (1.5m tonnes) this year from $46m (36,508 tonnes) and $1.4m tonnes (1.5m tonnes) in the year-ago period.

All other food items imports also plummeted by 14.4pc to $750m from $876m. The PBS data did not mention the quantity of other food items.

Among the gainers was sugar whose imports rose by 33.5pc to $4.2m (8,005 tonnes) from $3.1m (4,281 tonnes). Imports of spices went up by 16.5pc to $53.6m (67,705 tonnes) compared to $46m (67,995 tonnes).

Karachi Wholesalers Grocers Group (KWGG) Chairman Anis Majeed said pulses imports have been falling thanks to around 1m-tonne local crop of gram pulse last year whose carryover stocks of 250,000-300,000 tonnes are still in the local markets. He ruled out the possibility of higher imports of gram pulse this year, too.

Annual consumption of all the pulses in Pakistan is around 1.2m tonnes in which about 600,000 tonnes is imported depending on the local crop and demand and supply situation.

On higher sugar imports, Mr Majeed said, “I think it’s a special kind of sugar being used in medicine manufacturing and special juices.” There is no need for sugar imports now due to production by local mills while sugar exports were still going at normal pace, he added.

Pakistan Tea Association (PTA) Chairman Mohsin Saifee linked the drop in tea import bill to fall in African tea prices by 50-70 cents per kg in the last eight months whose impact was visible in dollar value while the import quantities almost remained the same.

He said tea packers had sharply reduced prices three months ago. As the Kenyan crop is good and prices may remain stable followed by the rupee’s appreciation against the dollar, consumers may further see price cut in tea prices, he hoped.

Importer and exporter of food items Haroon Agar said the quantity-wise imports of spices remained the same during the period, but higher international cost and freight (C&F) prices of cardamom, black pepper, cumin seed, coriander seed, kassia, etc in world markets kept the import bill high in dollar terms.

Cardamom C&F price is $5,000 per tonne in world markets, followed by black pepper at $2,100 per tonne and coriander seed $400 per tonne, he added.