A sour season for kinno exports
WITH the kinno export season just beginning, the prospects look dim this year, as the government has already cut the export target to 250,000 tonnes. That’s a far cry from the 280,000 tonnes exported last season.
Exporters, however, do not see even this reduced target achievable. They say exports have now been limited to only a few markets in the Far East (Indonesia, Singapore and the Philippines) and the Gulf (mainly Dubai). Combined exports to these countries can only help meet half of the target, they believe.
There have been no exports to Iran for the last two years because of different reasons, whereas the Russian market slipped out of hands for pricing and duty issues.
As for Ukraine, exporters have lost huge money owing to political turmoil there, and they are not ready to risk fresh exports.
Moreover, Pakistan has placed a self-imposed ban on exports to European countries, as a ban coming from there over quality issues could have spillover affects. Thus, the country has limited export markets this year.
The crop situation does not leave much room for optimism either. According to reports from the citrus belt, the yield is normal (around 150 maunds per acre), but the smaller-size citrus forms 70 per cent of the yield this year, leaving only 30pc of the production potentially exportable.
Urgent measures are needed to keep citrus a respectably exportable fruit
Pakistan’s kinno exports have been losing markets owing to various issues. The fruit has been facing canker disease and fungi for the last many years, without any major attempt to check both the issues, which have worsened with the passage of time because of climate change.
Erratic rainfall and hailstorms have at times wiped out the entire crop in one area or another, leaving the residual crop severely compromised on quality. Besides, the country’s citrus belt falls between Jehlum and Chenab rivers, both regularly overflowing their banks to inundate the area. The soil of the citrus belt is now on the verge of getting waterlogged.
Moreover, citrus is a deep-rooted fruit which only complicates the situation. Pressed from the two sides — from soil with over-watering and erratic behaviour of clouds from above — the crop has lost its sheen over the years.
Another hindrance to kinno exports is pricing. All major competitors of Pakistan — including Morocco, Turkey and Egypt — have gone through currency devaluation in the last few years, making Pakistani citrus non-competitive on the world market.
Exporters sought a subsidy of $3,000 on each container to be exported to Russia this season, but the government refused to accept their request. With lower domestic quality, exporters from Pakistan would only try to dump their exports, further pushing down the proceeds.
Pakistan, especially Punjab, needs to take some urgent measures to keep citrus a respectably exportable fruit.
Apart from both problems identified above, another issue is related to aging kinno orchards, which have lost their vitality and have become susceptible to all kinds of diseases.
The trees at these orchards should be replaced with genetically strong ones, which have better yields and can withstand climatic pressures.
The Punjab government has not introduced a nursery certification process so far despite the fact that the province produces more than 80pc of the national yield.
No one knows how all these orchards in Sargodha — which contributes over half of the national citrus production — were developed, from where their seeds came and why farmers chose one variety over the other.
With the Seed Act now in place, the Punjab should immediately put a mechanism in place.
The federal government also needs to strengthen its institutions like the Pakistan Horticulture Development and Export Company (PHDEC), which has become irrelevant after being an active leader of the national horticulture export drive which helped open up new markets and develop local standards for fruit to organise domestic market.
With some recent changes in the PHDEC, one hopes the situation would improve and the company also gets some money to regain its lost glory.
Most of the problems facing citrus are well documented in the files of federal and provincial departments. One only needs to start solving them. The earlier, the better.
Published in Dawn, The Business and Finance Weekly, December 11th, 2017