ISLAMABAD: Exports of raw food items continued to increase in the current fiscal year, with a 42.39 per cent gain in the first two months compared to the same period of the previous year.

The value of raw food exports reached $1.01 billion in July-August from $710.65 million over the corresponding months of last year, according to data compiled by the Pakistan Bureau of Statistics.

In FY24, the raw food exports touched $8bn, up from $5.8bn over the preceding year.

As a result, consumers nationwide are paying higher prices for food items because of supply and demand gaps. Raw food exports have climbed for the past 13 consecutive months despite the highest food inflation in history.

The government has allowed sugar export despite an average retail price of Rs160 per kg.

In the first two months, sugar exports reached 86,148 tonnes, compared to 6,146 tonnes in the same months last year, showing an increase of 160.26pc. Millers have mainly exported sugar to Afghanistan.

Rice is a major contributor to the rise in food exports. Rice exports increased by 98.58pc in the first two months of FY25 compared to the previous year. The quantity and value of basmati rice increased by 136.19pc and 103.63pc, respectively.

Exports of rice, other than basmati, increased 95.16pc in value and 64.44pc in quantity in 2MFY25 over the last year.

This surge is attributed to Pakistan’s strong performance in the EU, Africa, the ASEAN region, and GCC countries, coupled with fixing the Minimum Export Price and enhanced compliance with Sanitary and Phytosanitary standards.

Due to a sustained surge in export figures over the past two years, the average price of basmati rice has surged to Rs400 per kg from Rs150, restricting buying from domestic consumers.

Meat exports increased by 2.43pc in 2MFY25 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 years, the average cost of buffalo meat has jumped from Rs700 per kg to Rs1,400. This increase has caught the attention of market observers and stakeholders alike. The price of chicken has also experienced an unprecedented surge, reaching its highest level over the last three years.

Exports of vegetables, especially onions, have recorded growth of 56.73pc in July-Aug FY25 from a year ago. The export of fruits increased by 11.20pc during the months under review.

Exports of fish and its products declined by 10.90pc, followed by a decline of 9.63pc in spices, 15.27pc in oil seeds and nuts, 100pc in the export of leguminous vegetables during the period under review.

Contrary to this, the import of food products declined 18.15pc to $1.06bn in 2MFY25 from $1.30bn over the corresponding months thanks to a decline in the arrival of infant baby milk, soyabean oil, palm oil, sugar and pulses.

However, the import of spices increased by 59pc and dried fruits 88pc, respectively.

Published in Dawn, September 19th, 2024