BEIJING: The Pakistani pepper industry will continue to grow and prosper with more bilateral partnership, which will also open the door for the prosperous pepper trade with China.
Pakistan produces 143,000 tons of chilli per year from 150,000 acres of farmland, making it the world’s fourth-largest producer of the spice. Pakistan is in a favorable position in the international chilli market thanks to its impressive production capability.
Meanwhile, Pakistan has a great chance to take advantage of a profitable market and increase its pepper exports due to China’s rising demand for dried chili, which exceeds 200,000 tons annually.
One excellent example is the China-Pakistan Chilli Farming Project, which is an essential part of the China-Pakistan Economic Corridor. The enterprise uses an order-based contract farming approach and covers 16,000 acres of land used for chilli production.
According to China Economic Net (CEN), the initiative has effectively taught more than 1500 agricultural experts in Pakistan, increasing output per acre by 100,000 Pakistani Rupees and double the unit production value of conventional crops.
“Chinese companies are not only providing technical support and guidance for seedling cultivation, field management, harvesting and drying of chilli pepper, but also establishing a system that connects Chinese buyers with guaranteed demand,” says Awis Mir, CEO and Founder of DEA Group of Companies, outlining the advantages of cooperative partnerships.
By forming buyer clusters that include state-owned businesses, this approach guarantees market access for Pakistani exporters of chilli and streamlines the supply chain.
The first shipment of Pakistani chilli was sent to China earlier this month, marking an important turning point in the project’s development and Pakistan’s international agricultural exports.
Even with its amazing growth and potential, Pakistan’s chili sector still confronts obstacles. The Trade Development Authority of Pakistan (TDAP) reports that in 2019, 2,751 tons of dried red chili peppers were exported from Pakistan; by 2022, that amount had dropped to 1,665 tons.
“The country’s production of chillies has suffered as a result of the severe flooding in recent years. The Pakistan Consulate in Guangzhou’s Trade and Investment Counselor, Muhammad Irfan, notes that there are issues with the drying process as well.
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“Pakistan and China have signed agreements and Memorandums of Understanding (MoUs) to address the connected issues. Particularly in flood-prone areas, Pakistan is providing land with favorable regulations as part of its attempts to help the chilli industry and lessen the effects of climate change, Irfan continued.
The establishment of the China-Pakistan Food Export Processing Zone is scheduled to occur by the end of 2025, it was also mentioned.
