Muhammad Daniyal, country head and head of Grains and Oilseeds at Louis Dreyfus Company (LDC), told Express that the lower price of Pakistani corn was not due to its quality but because of excessive moisture and other impurities in the crop.
He said LDC’s objective in Pakistan was to help connect the country’s surplus agricultural produce with international markets according to required quality standards and enable farmers to receive better prices for their crops.
Daniyal said Pakistan had significant potential to increase agricultural production and exports because of its irrigation system. However, improving agricultural infrastructure, post-harvest storage and logistics was essential to fully benefit from this potential.
According to Daniyal, Pakistan produces non-GMO corn, which commands higher prices globally, but farmers generally lack adequate facilities to dry, store and transport the crop according to international standards.
As a result, international buyers often avoid purchasing Pakistani desi corn. When buyers do agree to purchase it, they negotiate contracts at prices 10% to 15% below prevailing market rates.
Daniyal said Pakistan already had strong corn production and could generate millions of dollars in foreign exchange if the harvesting, drying, storage and marketing systems were brought up to international standards.
He said the issue was directly linked to a lack of basic infrastructure and needed to be addressed to make Pakistani agricultural products more competitive in global markets.
To help address grain storage challenges in Pakistan, LDC has established its first silage storage facility near Multan, with the capacity to safely store 40,000 tonnes of grains, including wheat, corn and rice, according to Daniyal.
He said the facility had been established in Punjab’s agricultural region to help preserve surplus production. Areas with high crop production can also face greater risks of wastage when adequate storage facilities are not available.
Daniyal said better storage could help maintain the quality of crops from the first day after harvest. Grain should be moved immediately after harvesting to facilities with proper ventilation and moisture-control systems.
This can reduce losses, preserve quality and make Pakistani wheat and corn more competitive in international markets, while also providing local processors with a more stable supply of agricultural commodities.
