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Non-genetically modified (non-GMO) corn produced in Pakistan is being sold in international markets at prices 10% to 15% below prevailing market rates, despite its premium status globally. The discount stems from problems related to harvesting, handling, and storage rather than the intrinsic quality of the grain itself.
Speaking to The Express Tribune, Muhammad Daniyal, Country Head and Head of Graids and Oilseeds at Louis Dreyfus Company (LDC), explained that excess moisture and impurities present in the crop are driving down prices for foreign buyers. According to Daniyal, the lower price reflects post-harvest deficiencies, not the underlying quality of Pakistani corn.
Daniyal stressed that LDC's entry into Pakistan was designed to provide access for the country's surplus agricultural commodities to international markets in line with required standards, and to ensure that local farmers receive appropriate prices for their crops.
He noted that Pakistan holds significant potential to expand agricultural production and sell into international markets, supported by the country's robust irrigation system. However, unlocking that potential requires upgrading agricultural infrastructure and standardising post-harvest storage and logistics.
Pakistan produces non-GMO corn, which commands a higher price in global markets. Yet, because farmers lack adequate systems for drying corn, storing it in suitable facilities, and transporting it to buyers, Pakistani corn is frequently bypassed by international purchasers. When buyers do engage, agreements are typically struck at 10% to 15% below prevailing market rates.
To address the challenge, Daniyal emphasised that Pakistan produces corn of excellent quality. Bringing harvesting, drying, storage, and marketing systems up to international standards could unlock millions of dollars in export earnings.
He linked the issue directly to the lack of basic infrastructure. As a partial response, LDC has built its first silage storage facility near Multan, with a capacity of 40,000 tonnes for grain, including wheat, corn, and rice, stored in line with international standards.
The facility, located in Punjab's agricultural heartland, is intended to preserve surplus production from the region. Daniyal noted that 'where there is surplus production, the chances of the produce being wasted are also higher. Therefore, better storage will help maintain quality from the very first day.'
He added that once grain is harvested, it should be moved immediately into facilities with proper air circulation and moisture-control systems to minimise losses and preserve quality. This would make Pakistani wheat and corn more competitive internationally while providing local processors with a more stable supply.
Source: The Express Tribune