Raw materials price hike scary for Agri sector.

PAKISTAN and GULF ECONOMIST sought views from Mehran Spice and Food Industries regarding the price hike of raw materials. The following details were shared by Mehran Spice and Food Industries

The impact of the 2022 floods on Pakistan's rural communities and agriculture has been devastating, resulting in the loss of crops, livestock, and essential infrastructure. The unexpected hike in the price of raw materials is an alarming situation in the agriculture sector of Pakistan.

Mehran Spice and Food Industries is a renowned and fast-growing FMCG organization. We are the biggest food export company in Pakistan and export to more than 60 countries throughout the world. We face many problems not only in Pakistan but worldwide after COVID-19, prices are high due to a shortage of cultivation, and procurement of raw material get difficult internationally also. This flood has a widespread effect on the agriculture sector, its impacts are the non-availability of raw materials, inflation, very difficult competition in export and local markets, and the reaction to an environment of tight credit and escalating prices.

Mehran's products include Rice, Spice, Pickles, Sauces, Paste and Desserts.

The prices of raw materials rice, spice, wheat, cotton, and oil, skyrocketed over the past few months. This inflationary backdrop and a wary consumer affect the situation making the prices of our product higher. It is very difficult for us in the export market to compete because we cannot compromise on quality.

The quality and taste of Mehran's product is our success with the world's customers. Mehran is popular as a premium-quality rice exporter, procuring pesticide-free rice from Punjab and processing it through state-of-the-art machinery imported from Germany. In rice we face pesticides problem because rice growers use different sprays on rice crops, therefore we have to select the best raw materials from among the suppliers. We test raw materials samples before purchases and upon the satisfactory result, we proceed to procure. Further, when raw materials are received in a factory, we do various treatments and testing from national and international laboratories to maintain quality standards to sell Mehran's products in the international and domestic markets.

The increasing demands for our products worldwide motivate us to purchase the best raw materials and strictly follow quality standards in each product including spices, pickles, paste, ketchup, sauces...