Initially farm commodities used to figure prominently in export trade but with the industrial base becoming wider and wider, they shrunk and now they hardly constitute 10-12 per cent of the total annual exports.

Speaking specifically, in the FY 1997, the share of primary commodities was as low as 11.2 per cent while the share of semi-manufactured and finished industrial goods rose as high as 20.6 per cent and 68.3 per cent, respectively.

A glance at the relevant figures of the last five years would give a clear picture.

Pakistan’s total exports earnings crossed the psychological berries of $9 billion touching a new high of $9.2 billion in the year 2001 from $8.4 billion in 1997. This rise is based on volumes exported when global prices still worked against Pakistan. However following factors led to increase in exports:

(i) high exportable surpluses from the two successive bumper cotton crops; (ii) strong growth in the large-scale industrial production (excluding sugar); and (iii) the improved competitiveness due to the massive depreciation of the Pak rupee in the year 2001.

Performance of some of the important agri items:

(i) Cotton: Export earnings from raw cotton increased by $66.7 million owing largely to 62.8 per cent rise in the quantities exported, with global prices contributing $21.1 million.

In spite of surplus in raw cotton, concerns were expressed about contamination and poor quality and the local mills and spinners had to import nearly 80,009 tonnes of high quality raw cotton. In August, 2001, the government set a target of one million bales of contamination-free cotton by announcing cash reward for growers. Private companies were also allowed to issue quality certificates before export.

(ii) Rice: For the last several years, rice exports have been the second largest foreign exchange earner after textiles. However, despite 28.2 per cent increase in export volumes in FY01, (2.5 million tonnes), the total export volume declined from 30 to 20 per cent. Apart from a fall in the global prices, lack of quality and proper marketing were also responsible for the decline in rice export earnings.

Of various destinations of rice exports, Dubai and Saudi Arabia are of importance with regard to quantities purchased. Dubai which serves as a distribution centre for Pakistani rice, accounted for 34.2 and 4.9 per cent of the total export volumes of basmati and inferior varieties, respectively.

Dubai’s this much share in rice imports from Pakistan, being pretty disproportionate keeping in view the needs of its population, lends some credence to reports that Indian traders after purchasing Pakistani rice, (particularly basmati), sell it under their own “Tajmahal” brand at much higher price in other markets.

In the case of Saudi Arabia also, Pakistan was losing its market share to India due to the non-availability of quality parboiled rice during FY01. As such basmati exports declined by 21.8 per cent in terms of volume and a fall of 30.9 per cent in value.

However, in this gloomy scenario, there seems to be a ray of hope due to the following factors:

(i) the recent decision by the Philippines government to allow Pakistan firms to take part in its bidding for rice;

(ii) the permission to the private inspection companies by the government to certify quality specifications;

(iii) formulation of a quality review committee to inspect rice export consignments and;

(iv) a joint treaty with India regarding patenting of the three qualities of basmati rice by the US firm, “Rice Tee”.

Fish preparations: This item earned us $137.8 million in FY01, with a marginal decline of 0.8 per cent over the last year. Gains in unit export prices due to a greater quantum of shrimps (that fetch higher prices) and the upgradation of Pakistan’s status in EU vetenary list more than offset the lost revenues from lower export volumes. European Union (EU) remained the main export market following the scam of the “mad Cow” and foot-and- mouth diseases. Adherence to global hygiene standards by processing plants in Pakistan increased to 14 after EU’S approval.

Fruits exports registered an increase of 8.4 per cent in terms of volume with a slight decline in revenues at $1.2 million in FY01, mainly due to lower prices. Mangoes were an exception which posted a strong growth in revenues of 46.7 per cent to $17 million. This was due to better marketing.Mango has new markets in the Far East, Scandinavia, Middle East and other countries in Europe.

There is every likelihood of further increase in fruit exports once the vapour leaf treatment plant starts functioning. The target markets will be, Australia, South Korea, Japan and the US.

(v) Wheat: for the first time, the country harvested a bumper crop of more than 21 million tonnes in FY01. This created substantial exportable surplus which needs more storage space and greater efforts for its exports abroad. Although Pakistan has not so far been able to break much ice in this regard, there is every hope for its export in appreciable volumes. So far, only 35,001 tonnes valued at $4.3 million have been exported to Iraq and 45,497 tonnes worth $6.7 million to Afghanistan.

Presently, the TCP has been made responsible to handle the sales of wheat abroad. Its modus oprendi in this regard comprises inviting tenders for purchase of wheat from private exporters. Still huge volumes of wheat are lying in godowns unsold.

The TCP is also engaged in looking after the export of cotton and a number of other commodities, it is feared that the entire surplus wheat lying in godowns would not be disposed of before it gets damaged.