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Export Target of Kinnow for Russia & Iran reduced – PFVA

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During current season, 250,000 tons Kinnow of the total anticipated production of 2000000 tons would be exported from Pakistan – Waheed Ahmed, Patron-in-Chief PFVA

Keeping in view various issues related to export of Kinnow to Russian and Iranian markets during the current year, the export target has been re-set downward by All Pakistan Fruit & Vegetable Exporters, Importers & Merchant Association (PFVA). According to the Patron-in-Chief of the PFVA, Waheed Ahmed, export of Kinnow has already commenced from Dec. 01, 2017 and the export target during the current year has been set as 2, 50000 tons. The Kinnow Industry has been experiencing numerous issues in export of Kinnow which had led to consistent decline in its export since the year 2014-15. 375000 tons Kinnow was exported in year 2014-15, however even export target of 300000 tons could not be attained during last year’s season being limited only to 280000 tons! The decline in export of Kinnow can be attributed to lack of interest on Part of Govt. of Punjab, high cost of production, stiff competition and various trade barriers imposed by Iran, Europe and Russia.

For the last six years Kinnow could not be exported to Iran due to reluctance in issuance of import Permit by Iranian Govt. – disclosed Waheed Ahmed. Import valuation of Pakistani Kinnow is unrealistically assessed higher by US$ 3 per 10 Kg by the Russian Govt. which makes it almost impossible to compete with Egypt, Morocco and Turkey – further added by Waheed. Demand of Pakistani Kinnow in the International markets is on sharp decline due to its poor appearance, too many seeds and infection due to Canker. Pakistan taking initiative had “self-imposed” temporary embargo on export of Kinnow to Europe and UK in year 2014 and thus averted likely ban on import of Kinnow by these countries. – Waheed shared.

Attention of GoP on significance and immediate need for Research & Development (R&D) is being emphasized by the PFVA for last several years to improve quality of Kinnow but despite the fact that more than 90% area of cultivation of crops of Kinnow is in Punjab, the Govt. of Punjab did not pay attention to this poor fruit, it deserved – Waheed expressed with concern.

The production of Kinnow during the current season is anticipated to be 1,900,000 ton to 2,000,000 tons, however due to production of small size Kinnow in abundance, export to Russia has assumed special significance where this size is in great demand – Waheed highlighted.

During the recent fifth inter-ministerial meeting between Pakistan and Russia, it was mutually agreed to give more access of Pakistani Agriculture produces to Russian market and removal of Tariff and NTBs. However the concerned Ministries of Pakistan would also be required to play an instrumental role for implementation of this agreement – Waheed stressed. Availing this unique opportunity, the exporters would be able to get compensation to the huge financial losses, they had sustained in this market. PFVA has demanded freight subsidy of USD 2500 per export container enabling exporters to encounter stiff competition from Egypt, Turkey and Morocco. Pakistani Kinnow continues to face stiff challenges from these countries due to extension of freight subsidy by their Govts., devaluation of their currencies and low cost of production. Iran like Russia is a big market of Pakistani Kinnow, however due to non-issuance of import permit by the Govt. of Iran, the export of Kinnow to this market remains suspended for the last six years – deplored Waheed.

Issuance of quota in December during the current season by the Indonesian Govt. would lead to further enhancement of export of Pakistani Kinnow. With export of Kinnow from 1st December 2017 as of now 800 Kinnow containers weighing 20,000 tons have been exported to Russia , Dubai , Philippine , Sri-Lanka , Indonesia , Singapore , Saudi Arab , Canada , Mauritius , Bangladesh, Malaysia, Sri lanka & UAE etc. According to Waheed Ahmed , Pakistani Kinnow is also exported to central Asian States via land routes , however due to problems being created by the Afghan authorities , the export to these states is likely to be badly affected and hence it’s imperative that the GoP must resolve issues by negotiating with Govt. of Afghanistan – Waheed demanded . 

Attainment of export target of 250000 tons during the current season would largely depend upon favorable weather conditions and political stability in the country while frequent set-ins processions and protest movements would have bad impact on trade activities and it’s likely continuation during the current export season of Kinnow would make it quite difficult to achieve the desired export target – Waheed feared. Stressing upon the Govt. of Punjab, Waheed emphasized the need for an immediate actions on war- footing basis to improve quality of Kinnow otherwise we will have no other option but the Kinnow factories providing jobs to millions of work force would shut down leading to remarkable reduction of US $ 200 million in export revenue while investment of billions of Rupees would be washed away – Waheed cautioned.

Posted on: 2017-12-04T13:38:00+05:00