Bumper yield: Government mulls exporting tomatoes

Farmers want duty exemption, domestic prices likely to rise

ISLAMABAD: The government is considering giving permission to growers to export tomatoes that will, as a consequence, increase its price in the domestic market.

The Ministry of National Food Security and Research has prepared a summary to be presented to the Economic Coordination Committee (ECC) to remove the 25 per cent duty on the export of tomatoes imposed in March 2014.

“It’s the pressure from the farmers that has forced the government to consider exporting tomatoes and this will increase prices in the domestic market. Tomato prices in the local market are already higher than the previous year despite their high production,” said a senior officer in the ministry.

“There has been a bumper yield this year. But the prices will not go down, but increase once the government removes the 25 per cent duty.”



According to official documents, during 2014-15 the total domestic production estimates 3,561,000 tons in Pakistan, which includes 3,400,000 tons in Punjab, 4,000 tons in Sindh, 126,000 tons in Khyber-Pakhtunkhwa and 30,000 tons in Balochistan. Compared to the current year, last year saw a total production of 2,901,000 tons in Pakistan.

There is no estimated statistic of the domestic consumption for the current year, however, according to 2011-12 estimates, the domestic consumption including seeds and wastage is about 3,440,000 tons and human consumption is 2,685,000 tons.

Prices of tomatoes generally peak in October-November and start declining from December onward as the new crop from Punjab is available in the market. The lowest prices are observed from January to March if the stock is available.

The figures of the Pakistan Bureau of Statistics show that prices of tomatoes in 2014 remained at an all-time high compared to the corresponding periods in 2013.

The figures show that in December 2014, the prices of tomatoes is 18.3 per cent higher than the corresponding month of the last year.

Published in The Express Tribune, December 17^th, 2014.

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