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’s food exports rise to $4.62 billion in seven months - Profit by Pakistan Today

https://profit.pakistantoday.com.pk/2025/02/19/pakistans-food-expor...


Pakistan’s food exports increased by 8.17 percent to $4.62 billion during the first seven months of the fiscal year 2024-25, up from $4.26 billion in the same period last year, primarily driven by a rise in rice shipments, according to data from the Pakistan Bureau of Statistics (PBS).


This marks the 18th consecutive month of export growth, even as domestic food inflation remains at historically high levels, leading to increased prices for consumers across the country.

Rice exports played a key role in the overall increase, with shipments reaching $2.19 billion during July-January 2025, a 3.73 percent rise from $2.12 billion in the corresponding period last year.

The export volume of basmati rice grew by 22.04 percent to 487,221 tonnes, with its export value rising by 11.98 percent to $511.59 million. Non-basmati rice exports also increased by 1.46 percent in value to $1.68 billion, with export volume up 7.72 percent to 3.15 million tonnes.

New export markets, including Bangladesh, have contributed to the expansion of Pakistan’s rice sector, which remains a key driver of exports to the European Union and the United Kingdom. However, the continued surge in rice exports has impacted domestic availability, pushing basmati rice prices up to Rs400 per kg from Rs150 two years ago.

Sugar exports saw a dramatic increase, rising by 2,188 percent to 757,597 tonnes compared to just 33,101 tonnes in the same period last year. Afghanistan has been the primary destination for these shipments, contributing to the domestic price hike in sugar.

Meat exports also registered a modest increase of 2.6 percent during the first seven months of the fiscal year. The expansion of meat exports has been driven by new market openings, the participation of additional exporters, and the approval of more slaughterhouses. However, domestic meat prices have surged in recent years, with buffalo meat prices doubling from Rs700 per kg to Rs1,400, while chicken prices have hit record highs.

Conversely, exports of vegetables declined by 18.14 percent during July-January 2025, mainly due to a drop in onion, potato, and tomato shipments. Fruit exports also recorded a slight decline of 0.24 percent, while fish and seafood exports showed minimal growth of 1.25 percent.