ISLAMABAD: Despite the unfavourable circumstances and various obstacles, Pakistan has exported a record 370,000 metric tons of Kinnow this year making it the highest ever export volume of Kinnows in the country.
The export of Kinnow commenced from December 2017 and continued till the beginning of May 2018. Compared to the export volume of Kinnow last year which stood at 325,000 tons, the current season of Kinnow this year has witnessed the highest export volume of 370,000 tons leading to the generation of foreign exchange worth $222 million for the country.
According to data shared by the Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA), the withdrawal of duty by the Indonesian Government on the import of Pakistani Kinnow, drawback of Local Taxes and Levies (DLTL) of $250 per export container of Kinnow to Russia, and other measures enabled Pakistani exporters to compete in the international market which facilitated the export of Kinnow.
According to PFVA, as a result of joint efforts by the Ministry of Commerce (MoC), the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the restriction of quota system which was imposed on import of Pakistani Kinnow in the Indonesian market by the Government of Indonesia was abolished by the Indonesian government. Indonesia used to issue import permits for the import of Pakistani Kinnow by mid of January and because of the restriction on the volume of Kinnow, it used to prove very difficult for exporters to receive sizable orders.
On the occasion, in a statement, the FPCCI vice president, Waheed Ahmed and Patron-in-Chief of PFVA said the excellent crop of Kinnow in Pakistan this year with a simultaneous low production of the fruit by big producers of Kinnow such as Morocco; it provided a massive opportunity to enhance exports to the Russian market. For the last seven consecutive years, the export of Kinnow to the Iranian market had a volume potential of 60 – 80,000 tons. However import permits were issued by Iran on the eve of “Noroz” festival, but due to a limited time period, logistic issues and difficulties in financial transactions, this opportunity could not be availed by Pakistani exporters.
According to Waheed Ahmed, the Kinnow industry of Pakistan faces internal and external challenges. Stiff competition in the international market with Turkey and Morocco in terms of their quality and price has made it difficult for Pakistan to attain a desirable volume of exports. Changes in climatic conditions and lack of Research and Development facilities in Pakistan has made it hard to enhance the quality and production of this delicious fruit and increase its shelf life.
The Kinnow trees in Pakistan have already completed their life cycle and hence lost the capacity to resist diseases. Since new orchards of this fruit are not being planted, it’s feared that the Kinnow industry and its exports would take a beating in the near future.
Since Punjab is a hub of Kinnow production, it’s imperative that the government of Punjab must pay serious attention to initiate R&D activities so as to improve the quality of the fruit. By safeguarding Kinnow against diseases and with the exploration of new varieties of Citrus fruits, the Kinnow industry of Pakistan has the potential to reach unparalleled levels in the global market.
Kinnow continues to face the issue of “High Valuation” from the Russian customs’ authorities leading to higher costs of Pakistani Kinnow in this important and massive international market. The actual value of Pakistani Kinnow is $6 – 7 per 10 kg while the Russian authorities assess it at $9.5 per 10 kg. After February, the valuation has been revised upward to $10.5 per 10 kg making it even more difficult to compete due to a further increase in its cost. PFVA has raised its concern on the issue before the Pakistani and Russian authorities while Pakistani diplomats posted in Russia and the MoC have also rendered their much needed assistance. Resultantly, Russian authorities have shown willingness for a reduction in the valuation of Kinnow. However, due to the silence on this matter witnessed from the Federal Board of Revenue (FBR), this issue still remains unresolved – Waheed deplored.
He further added that Pakistan can export fruits and vegetables to massive markets such as China, and avail the friendly relations between the two countries and their economic partnership of the Pakistan China Economic Corridor (CPEC) which provides routes to China via road. A lack of quality of Kinnows produced in the country has so far made it hard for exporters to jump on the CPEC bandwagon.
