LAHORE: Kinnow growers have rejected the purchase price of Rs800 per maund offered by fruit exporters and processing factories in the 2021-22 season. They have demanded that the authorities concerned address their grievances and announce reasonable prices for citrus in light of the rising inflation.

Last year, the kinnow growers were offered Rs900 per maund.

Ground realities have not been kept in mind while deciding the new rate, says Muhammad Hanif Hanjra, a citrus grower from Sargodha. He argues that prices of urea fertilizer have doubled and of DAP (diammonium phosphate) more than tripled in a year, while the electricity tariff and diesel prices have also shot through the roof during this period but the exporters are cutting the rate for our produce instead of increasing it.

“As farm input costs have gone up manifold during the year the rate should be increased incommensurate with the hike and not vice versa,” demands Mr Hanjra.

Punjab produces over 98% of the citrus fruit, mainly in Sargodha district, because of its favourable growing conditions and adequate canal and sub-soil water. Kinnow constitutes 80 percent of citrus fruits and is a major export commodity.

In the last season, the citrus fruit was exported to 40 countries achieving a new export record of 460,000 tonnes, which was 30 percent higher as compared to the 2019-20 season’s export volume of 353,000 tonnes.

“Pakistan earned valuable foreign exchange worth $254 million through the export,” says Ahmed Jawad, ex-chairman of FPCCI’s standing committee on horticulture.

He is optimistic that the Iranian market will also open to the local citrus produce this season as, during his recent visit to Iran, Foreign Minister Shah Mahmood Qureshi persuaded Tehran to withdraw ban on the import of Pakistani kinnow.

Mr Jawad estimates the Iranian market may absorb over 80,000-tonne Pakistani citrus and that kinnow exports to various markets can be enhanced to $550 million within a few years by implementing effective policies.

Qasim Aijaz, an exporter, is not that optimistic about the opening of the Iranian market. He says that no concrete step has so far been taken for the purpose other than the publication of the news.

About the rate offered to kinnow growers, he says the crop is not promising this year as its size is small because of climatic conditions, while exaggerated freight charges are shying the exporters away from the market.

He says that so far purchase contracts for 10pc of the products have been made against the last years’ practice when almost 75pc of the produce would be booked by this time.

However, up to Rs10,000 per maund rates are also being offered to the growers whose produce falls in the A-grade category, he adds.

Published in Dawn, November 15th, 2021