January 7, 2012

Pakistan harvests record crop amid severe floods

Despite two years of devastation caused by flooding in many parts of Pakistan, some of the country's commodities have reached record volume growth, the UN Food & Agriculture Organization data showed.

The main stable crap is winter wheat, which farmers are currently planting despite unfavourable weather conditions, mainly rain. FAO reported that winter wheat crop harvested from April to June earlier this year reached a record 24.3 million tonnes, about 4.2% higher than 2011 output, reflecting favourable weather, fertiliser subsidies and government implemented minimum support purchase.

Demand for wheat continues to grow, and prices for wheat and wheat flour have risen in last three months after a slight decline around middle of 2011. Estimated rice surplus for 2012 is forecast at about three million tonnes of rice.

Consumer price inflation, which is currently at 10.2%, has caused domestic rice prices to increase 28% above normal levels since November 2011, according to FAO.

Although Pakistan is the world's fifth-largest rice exporter and continues to see record harvests, severe flooding has affected lives of its citizens. FAO says number of houses damaged or destroyed has reached nearly 1.5 million. Affected population has also suffered significant crop, livestock and grain stock losses.