STAFF REPORT
KARACHI: During the first four months of the current fiscal year, total vegetable exports have increased by 90% in quantity and 57% in value, thanks to brisk potato shipments that offset the downward trend in onion exports caused by massive crop destruction in Sindh and Balochistan.
The Pakistan Bureau of Statistics data showed that the total amount of vegetables exported from July to October was 378,826 tonnes, valued at $107 million, up from 199,119 tonnes in 4MFY22, valued at $68 million.
Exporters went above and beyond to send out sizable vegetable shipments despite the fact that they received low prices on the international markets. Despite a healthy volume of exports in terms of quantity, the average price per tonne of local vegetables sold for $284 in 4MFY23 as opposed to $342 in the same period last fiscal year.
Vegetable Export Revenue
Vegetable export revenues dropped from 950,369 tonnes in FY21 to 937,203 tonnes in FY22, a 1.39 percent decrease in both quantity and value.
Waheed Ahmed, President of the All Pakistan Fruits and Vegetable Exporters, Importers and Merchants Association, stated that vegetables are exported each year based on their availability, but potatoes and onions account for a significant portion. “A bountiful potato crop has proven to be very helpful in balancing the decreasing onion exports.
Floods in Sindh and Balochistan this year have ruined onion crops, preventing bulk shipments to various countries, which is a shame because otherwise, overall export numbers would be more impressive,” he said.
He also said that the majority of the potato shipments were going to Iraq, the Middle East, the Far East, and CIS nations.
According to the Economic Survey for FY22, potato production increased by 35% to 7.937 million tonnes in FY22 from 5.873 million tonnes in FY21 because Punjab, the country’s potato production centre, was spared from floods.
According to Mr. Waheed, the association had advised the government to engage in barter trade by exchanging potatoes for Russian wheat, but it was unable to take place.
Before floods destroyed the crops in Sindh and Balochistan, he claimed that onions were exported in small amounts. By the end of the current fiscal year, onion exports would really start to suffer.
Regarding the overall low value of vegetable exports despite higher volumes, Mr. Waheed said that weak exchange rates made it impossible to obtain better prices despite high global demand.
Winter has traditionally been regarded as a blessing due to the downward trend in vegetable prices, but this year the situation is completely the opposite as a result of floods that have devastated many green crops in Sindh and Balochistan, including onions, tomatoes, and many others.
As a result, imports of tomatoes and onions were mobilised a few months ago to close the supply and demand gap, but they were unable to halt the upward price trend due to the high-profit margins retailers demanded and currency fluctuations.
Customers now pay Rs180–200 per kg for onions, compared to Rs70–80 in the first week of July, and Rs40–60 for old potatoes, compared to Rs80. When the crop first hit the market 15 days ago, the new potato price was Rs130, but it had since dropped to Rs80.
