Despite exporting a record quantity of 1.035 million tonnes of vegetables in the first nine months of the current fiscal year, Pakistan’s earnings from vegetable exports were disappointing due to falling prices on the global market.
During this period, the country earned $235 million compared to $240 million from 675,331 tonnes in the corresponding period last year. The average per-tonne price (APT) also experienced a significant decline, dropping to $227 in 9MFY23 from $356 in the same period of the previous fiscal year.
Over the past five years, Pakistan’s vegetable exports have steadily increased. However, consumers often faced higher prices for various greens due to gaps in demand and supply, crop failures, and costly imports from other countries.
The price of potatoes remained relatively stable, while the price of onions surged from July 2022 to March, impacting consumer costs.
In the period of July-April FY23, vegetable exports continued to thrive, reaching 1.176 million tonnes and fetching $261 million. In FY22, vegetable exports stood at 937,203 tonnes ($310 million), slightly lower than the previous fiscal year’s 950,369 tonnes ($319 million). In FY20, exports were recorded at 825,457 tonnes ($298 million), while FY18 saw export earnings of $240 million from shipments of 880,848 tonnes.
Potatoes and onions constituted a significant portion of Pakistan’s vegetable exports, with potatoes being shipped to Commonwealth Independent States, Russia, the Far East, and the Middle East. Onion exports have also recently begun, reaching the Far East.
However, Pakistan had to import a substantial amount of onions due to crop devastation caused by flash floods, which resulted in a supply shortfall.
Waheed Ahmed, the patron in chief of the All Pakistan Fruit and Vegetable Exporters, Importers, and Merchants Association (PFVA), highlighted that some banks are applying three to nine percent liens on exporters, affecting the realization of export proceeds.