Pakistan Among World's Largest Food Producing Countries

[Riaz Haq]

Pakistan's agriculture output is the 10th largest in the world. The country produces large and growing quantities of cereals, meat, milk, fruits and vegetables. Currently, Pakistan produces about 38 million tons of cereals (mainly wheat, rice and corn), 17 million tons of fruits and vegetables, 70 million tons of sugarcane, 60 million tons of milk and 4.5 million tons of meat.  Total value of the nation's agricultural output exceeds $50 billion.  Improving agriculture inputs and modernizing value chains can help the farm sector become much more productive to serve both domestic and export markets.  

Top 10 Countries by Agriculture Output. Source: FAO

Pakistan has about 36 million hectares of land under cultivation. Wheat and rice are grown on more than half of it. Fruits and vegetables each account for only about 3% of the cultivable land.  Since year 2001, the country's cereal production, mainly wheat, corn and rice, has grown about 45% to 38 million tons. Pakistan produced 6.64 million tons of vegetables and 5.89 million tons of fruits in 2001. 

Pakistan is the world’s 4th largest exporter of rice. The country's domestic production is estimated to surge 13.6% to an all-time high of 8.4 million tons in the year end June 2021, according to Bloomberg.  

Vegetable production rose to about 10 million tons and fruit production increased to nearly 7 million tons in 2015.  A little over 60% of Pakistan's agriculture consists of livestock. Pakistan produces 60 million tons of milk and 4.5 million tons of meat.  Fish production adds up to about 575,000 tons. 

Pakistan's Rising Rice Exports. Source: Bloomberg

Share of Land For Various Crops in Pakistan

Crop yields in Pakistan are low, mainly due to poor quality inputs like seeds. In addition to fertilizer and water, seed is the basic input for agriculture sector and has a major role in enhancing agriculture productivity. This needs to be a key area of focus for Pakistani policymakers working on agriculture. 

Other critical area is post-harvest handling, particularly storage and transportation that is in desperate need of improvement. Post-harvest losses in fruits and vegetables due to mishandling of the perishable product, poor transportation, and inadequate storage facilities and market infrastructure account for about 30%–40% of total production, according to experts at Asian Development Bank.  

World's 5th Largest Population of Chicken in Pakistan

Improvements in agriculture inputs and modernization of post-harvest process require significant financing and investment. Growers get only a small fraction of value of what they produce, making it difficult for them to make these investments. Middlemen finance farmers and take the lion's share of profits in the value chain.  

Source: FAO via Kleffmann Group

Most of the farmers sell their produce to wholesalers via middlemen called arthis, according to an ADB report. Farmers contract out fruit orchards during the flowering stage to the middlemen (arthis), commission agent, and/or wholesalers who provide loans to the farmers over the course of production. Vegetables and fruits are transported by the same cart or truck from farms to the main markets in the absence of specialized vehicles for specific products. The same vehicle is used for many other purposes including animal transportation. Recently however, reefer (refrigerated) trucks have been introduced on a limited scale in some parts of Pakistan. In the absence of direct access of carrier vehicles to the farms, farmers gather their products in a convenient spot along the roadside for pickup. When middlemen or contractors are involved, it is their responsibility to collect and transport the produce. The unsold produce in one market is sent to other markets in the same locality. 

Date Palms in Sindh, Pakistan. Photo: Emmanuel Guddu

Investments in modernization of the agriculture production process and farm-to-market value chain will require major reforms to ensure growers get a bigger share of the value. The extraordinary power of the middlemen (arthis) as financiers needs to be regulated. This can not happen without legislation in close consultation with the growers. Improving agriculture inputs and modernizing value chains can help raise the productivity of the farm sector for it to serve both domestic and export markets better.  

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[Riaz Haq]

Pakistan may limit onion exports – what impact could it have on the markets of Europe and Central Asia? • EastFruit


https://east-fruit.com/en/news/pakistan-may-limit-onion-exports-wha...

According to EastFruit analysts, persistent rumors that Pakistan plans to limit onion exports have not yet been officially confirmed. However, the likelihood of such restrictions, formal or not, remains quite high. And this could have a significant impact on the market because Pakistan is among the top 5-7 global onion exporters in the world, according to EastFruit.

With this, Pakistan could join the long list of countries that have imposed bans or restrictions on onion exports in the past 12 months. Among these countries: Egypt, Turkey, Uzbekistan, India, Tajikistan, Kyrgyzstan, Kazakhstan, and others.

The main reason for possible restrictions on fresh onion exports from Pakistan is the rise in domestic prices for this vegetable, which remains one of the main products in the consumer basket. However, it must be taken into account that, firstly, onion prices are still lower than last year’s, and secondly, the local currency continues to devalue against the US dollar, which affects prices much more than the situation with supply and demand.

Read also: Catastrophic price situation for German onions

The main onion markets for Pakistan are Malaysia, Sri Lanka, and the UAE. In general, Pakistan is one of the main exporters of onions to the Gulf countries. Annually, fresh onion exports from Pakistan range from 300 to 450 thousand tons. In 2022, due to floods, a significant part of Pakistan’s onion crop was lost, so the country became a net importer, buying almost 500 thousand tons of onions, mainly from Afghanistan, Iran, and Egypt.

Although mutual onion trade between Pakistan and Europe and ex-USSR Central Asia is relatively small, the impact of this ban on the market could be quite significant. A possible restriction on onion exports could lead to a further increase in onion prices in the Middle East. Already, Pakistani onions are sold in bulk in the UAE at prices of more than $1 per kg. A further increase in onion prices in this region will lead to an increase in onion imports from the EU countries and will make onion exports profitable even from Uzbekistan to the UAE. Accordingly, if the decision is made, it may become decisive in supporting the rise in onion prices in Europe and Central Asia.

[Riaz Haq]

India’s pain is Pakistan’s gain in global maize market as exports drop to a trickle - The Hindu BusinessLine


https://www.thehindubusinessline.com/economy/agri-business/indias-p...


Pakistan has gained at India’s cost in the world corn (maize) market, particularly South-East Asia, as domestic prices are ruling higher than the global prices, exporters and traders said. This is in view of demand from the poultry and starch sectors besides for ethanol production amidst drop in the coarse cereal’s production this crop year to June.


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“India’s loss is Pakistan’s gain in the Asian market. It is selling maize at $240-50 a tonne. In contrast, our prices are over $300,” said M Madan Prakash, President, Agri Commodities Exporters Association.

In the domestic market, the weighted average price of maize is currently ₹2,132 a quintal compared with ₹2,039 a year ago.

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July-December 2023-24: Exports of agro and food products increase by 64pc - Business & Finance - Business Recorder



https://www.brecorder.com/news/40281972


KARACHI: During the first six months of the financial year of 2023-2024, exports of agro and food products from Pakistan has been increased by 64 percent as compared to the same period during 2022-2023. In the month of December only, there is growth of 118 percent, as $882 million of food product export was exported in comparison of $404 million in same month in 2022-23.

In the current fiscal year 2034-24 major increases were in export of Sesame seed (278pc), Maize/corn (208pc), Ethyl alcohol (497pc), Meat (23pc), Rice (96pc), Fruits and Vegetables (15pc), Spices (10pc) and Tobacco(34pc).

Pakistan exported sesame seed worth $364 million during July-December 2023-24 as compared to $98 million during July-December, 2022-23 showing a positive growth of 278 percent. The reasons for increase of sesame seed is the increased production in 2023 (2022 crop was destroyed by flood) and higher demand/rate from China, Korea, Japan etc.

Similarly the exports of Maize were $262 million during July-December, 2023-24 as compared to $85 million in July-December, 2022-23 showing a positive growth of 208 percent. Pakistan’s maize exports have increased manifolds in value, as global prices of food commodities have increased due to the outbreak of Russian- Ukraine war. The major markets for are Vietnam, Malaysia, Korea and Oman.

Pakistan exported ethyl alcohol worth $259 million during July-December, 2023-24 as compared to $43 million during July-December, 2022-23 showing a positive growth of 4 percent. The reason for increase is the high global demand.

In meat sector, Pakistan exported worth $239 million during July-December, 2023-24 as compared to $195 in July-December, 2022-23 showing a positive growth of 23%. The reasons for positive growth of meat sector is due to opening of new markets (Jordan, Egypt, Uzbekistan), and participation of many new companies for exporting meat to UAE, KSA & GGC Region.

Additionally three more slaughter houses were approved for exporting/processing by Malaysia. Moreover, two meat exporting companies also got market access for exports of heat treated meat to China who have recently shipped heat treated meat to China.

The exports of rice from were $1645 million during July-December 2023-24 as compared to $841 million in July-December. 2022-23 showing a positive growth of 96 percent. The reason for increase is due to India’s rice export ban and increased production of rice in Pakistan. Pakistan exported fruits and vegetables worth $285 million during July-December, 2023-24 as compared to $248 million in July-December, 2022-23 showing a positive growth of 15 percent. Similarly, exports of spices shows growth of 10 percent.

[Riaz Haq]

Banana production reaches 154,935 tons on 34,830 hectares - Pakistan Observer

The cultivated area of banana in Pakistan has exceeded 34,830 hectares and the production has exceeded 154,935 tons, with Sindh producing 127,426 tons and Punjab producing 9,573 tons.

According to media reports, Agriculture and Fruit Economist Ari Faisalabad Ishaq Javed, high varieties of banana can be cultivated very successfully in hot humid areas where there is no haze and the plants are protected from hot weather.

https://pakobserver.net/banana-production-reaches-154935-tons-on-34...

Rainfall up to 2,500 millimeters, temperatures between 16 to 18 degrees Celsius in winter and 21 to 24 degrees Celsius in summer can produce excellent banana production.

Javed said that since the roots of the banana plant go to a shallow depth, it needs enough water and fertile soil that has the ability to absorb water well. He said that the growth of banana can be done from rhizome pieces and rootstocks. He said that gardeners should keep the distance between plants from 1.5 to 2.5 meters and the number of plants per acre should be kept from 676 to 764. He said that gardeners should consult agronomists for further guidance.