Business

Surplus crops expose supply chain weakness

Significant proportion of bumper produce goes to waste every year due to inadequate storages


LAHORE:

Every year, bumper harvests bring hope to farmers but also expose a costly weakness in the agriculture supply chain. Surplus vegetables, like potatoes and onions, often end up rotting in open markets or fields, reflecting not abundance but inefficiency.

Farmer leaders say that without urgent reforms in storage and processing, such losses will continue to drain national wealth, while equally creating a surplus or a shortage sort of situation almost the entire year. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Regional Committee on Food Convener Shahid Imran said surplus crops, especially essential produce like potatoes, should never be wasted at any cost as such losses amount to squandering precious natural resources and hard-earned national wealth.

He emphasised that the country, being an agrarian economy, produces significant quantities of wheat, rice, sugarcane, maize, fruits and vegetables, but a considerable proportion of surplus produce goes to waste every year due to inadequate storage facilities, poor supply chain management and lack of value addition.

He noted that such waste not only causes financial losses to farmers but also exerts unnecessary pressure on water, energy and land resources used in cultivation.

Agriculture contributes around 23% to GDP and employs nearly 37% of the labour force, according to official statistics. Major crops such as wheat and rice together account for tens of millions of tonnes in annual output, while potato production reached around 10 million tonnes in FY25. However, experts estimate that post-harvest losses in fruits and vegetables range between 20% and 30% annually, translating into billions of rupees in economic damage.

Imran stressed the urgent need to modernise warehousing, introduce cold chain systems and promote food processing industries to convert surplus crops into exportable and value-added products. He said efficient post-harvest management and agro-processing zones could help stabilise prices, ensure food security and enhance farmers’ income.

He called for public-private partnerships to invest in silos, dehydration plants and packaging facilities, adding that by preventing wastage and utilising surplus effectively, the country could strengthen its food security, boost exports and protect natural resources for future generations. Industry analysts said that cold storage capacity remains insufficient compared to the scale of horticulture production. In peak seasons, farmers are often forced to sell potatoes and onions at prices below production cost due to limited storage options. Months later, shortages push prices sharply upwards for consumers.

The absence of an integrated cold chain system, from farms to wholesale markets and retail outlets, remains a key structural gap.

Arshad Ghaffar, a progressive farmer from central Punjab, said the problem was not production but planning. “Farmers are capable of increasing yields, but without proper storage and processing facilities, surplus becomes a burden instead of an opportunity,” he said. Ghaffar added that small and medium-scale growers suffer the most because they lack access to affordable cold storage and financing options. According to him, district-level dehydration plants and cooperative storage models can significantly reduce waste and stabilise market supplies.

Globally, countries with strong agro-processing sectors convert surplus crops into frozen foods, starch products and packaged goods for export markets. While Pakistani rice exports have crossed $3 billion in recent years, processed horticulture products still represent a relatively small share of total exports. Stakeholders said that investment in value addition could help narrow the trade deficit while also supporting rural incomes. They added that water scarcity further magnifies the cost of wastage. Agriculture consumes over 90% of freshwater resources. When crops are discarded, the embedded water and energy used in irrigation, fertiliser production and transportation are also lost.

In a climate-stressed environment, reducing post-harvest losses is increasingly seen as a sustainability imperative rather than just an economic issue.

“Strengthening storage infrastructure and promoting food processing can turn seasonal gluts into long-term economic gains. This step will not only increase production of various crops but also ensure that every harvested crop reaches its full economic value,” Ghaffar added.

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