Pakistan’s raw food exports inch up despite high inflation, rising local prices 

Food exports
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Pakistan’s raw food exports grew by 1.62 per cent, reaching $5.75 billion during the first nine months of the current fiscal year, up from $5.66bn in the same period last year. 

The increase was largely driven by higher shipments of sugar and basmati rice. 

This growth comes at a time when the country is grappling with record food inflation, which has left consumers struggling with the rising cost of basic items such as sugar, meat, and poultry.  

The imbalance between local demand and supply has made everyday groceries more expensive for households nationwide. 

One of the main contributors to the export surge was sugar. In June 2024, the government had allowed the export of 150,000 tonnes of sugar, provided local retail prices remained stable. However, actual exports far exceeded that limit, with 757,779 tonnes shipped by March. 

Data released by the Pakistan Bureau of Statistics (PBS) shows that monthly sugar exports included 39,158 tonnes in July, 46,990 tonnes in August, and 51,452 tonnes in September.  

The figures continued rising through the year, with 166,283 tonnes exported in November and a peak of 279,273 tonnes in December. By contrast, only 180 tonnes were recorded in February and none in March. 

The decision by the PMLN-led coalition government to allow large-scale sugar exports has drawn criticism, as it coincided with a steep rise in domestic sugar prices, which touched Rs180 per kg, further burdening consumers and stoking inflation. 

In the previous fiscal year, the government had permitted sugar exports of 212,896 tonnes over three months. 

Rice remained a key contributor to overall food exports, although the total value of rice exports declined by 5.91 per cent to $2.76bn in 9MFY25, compared to $2.93bn a year earlier. This decline was mainly attributed to a drop in non-basmati rice exports. 

On the other hand, basmati rice performed well, with export volumes rising 21.78 per cent year-on-year to 663,980 tonnes. Its export value also saw an increase of 8.78 per cent, reaching $676.96 million.  

Non-basmati rice exports dipped by 9.87 per cent in value, though a slight rise of 0.14 per cent in volume was noted, bringing the total to 4.02 million tonnes. 

New markets such as Bangladesh have opened up for Pakistani rice exporters, reflecting the sector’s expanding reach. Pakistani rice continues to hold a strong position in markets like the European Union and the United Kingdom. 

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