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Today's Paper | December 27, 2024

Published 11 Mar, 2013 12:14am

Systemic problems in fruit exports

ABSENCE of proper infrastructure, low productivity, and a lack of knowledge about post-harvest management and modern marketing techniques have resulted in Pakistan’s inability to  realise export potential of its fruit and vegetable.

The country exports around 10 to 15 per cent of its total fruit output, despite the presence of a big demand for its fruits in the international market. Meanwhile, some other countries are known to sell as much as 50 per cent of their total fruit output in the international markets.

As if Pakistan’s failure to meet the international demand was not enough, it continues to under price the products it sells by as much as 40 per cent of the global average price.

The resultant losses, both in real and economic terms, mean that the horticulture sector continues to contribute only 12 per cent to the country’s agricultural output.The lack of productivity and proper marketing also means that employment opportunities in areas like quality testing and packaging services never materialise. Even food and agriculture ministry officials admit that the country cannot make a breakthrough unless export volumes rise from their 15 per cent level to around 40 per cent of the total production.

According to sources, of the 13.67 million tonnes of fruits and vegetables that are produced in the country every year, nearly 25 per cent goes to waste post-harvest season. This wastage is blamed on the lack of hygiene and absence of quality controls, as well as improper transporting and cooling facilities, and a lack of know-how of the market potential of the fruits. Pakistan also lags behind other countries when it comes to marketing packaged fruits.

Some techniques and facilities that are likely to reduce post-harvest losses include updating storage and packaging facilities across the country, and putting in place adequate and planned transportation arrangements. An improvement in shelf life of fruits is not only likely to stabilise their prices in domestic markets, but also make them globally competitive.

The government has also taken some steps to address various infrastructural weaknesses, like approving the establishment of a cool chain system to ensure that the quality of the produce does not suffer during transportation. However, their impact can only be gauged once they completely come online. Also, multinational supermarket chains are increasingly getting involved in distribution activities, and it does seem that the horticulture sector in the country is, albeit cautiously, is welcoming the change.

But until these changes are adopted more widely, Pakistan will continue to miss out from accessing many international markets. Dozens of Pakistani fruits and vegetable shipments have been rejected by the United States, European Union and Australia over the years, reportedly due to high pesticide residues on the produce.

A similar case involves the export of fruits and vegetables to Russia, which has emerged as a problem for Pakistan during the last three years. A Russian team had visited Sindh and Pubjab from November 12 to 18 last year, and inspected potato, mango and orange (kinnow) farms. They then held a detailed meeting with exporters, and told them to get a certificate from a private laboratory in Lahore before they send in their shipments to Russia. In the meantime, the exporters would continue to need phytosanitary certification from the Plant Protection Department (PPD).

But the requirement was met with derision from the Pakistani side. The chairperson of the Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association observed that assigning a single private laboratory for issuing quality certificates would create a monopoly, and therefore open doors for corruption. Exporters also complained that the lab in question was not registered with the PPD, and that it would not be possible for just one lab to inspect thousands of shipments.

However, the Russians had refused to budge, and argued that the lab had the necessary technical expertise, including molecular testing facilities, which were necessary for thorough testing.

Pakistan exports around $40 to $50 million worth of oranges, and as much as $40 million worth of potatoes, to Russia every year. Local exporters warned that due to the additional testing requirement by Russia, the quantity of exports to the country was likely to suffer.

Meanwhile, exporters who attended the Fruit Logistica, one of the world’s largest fruit and vegetable exhibitions, in Berlin this February, noted that Pakistan was losing its share in the orange market in the European Union as well.

They attributed the slide to the excessive number of seeds present in Pakistani fruits. Consumers in the EU prefer to have as few seeds as possible in their fruits, they said. As a result, Turkish oranges are increasingly capturing the EU market, because they don’t have that many seeds.

However, neither the government, nor private exporters seem to have taken many measures to educate farmers to help them produce export-quality fruits and vegetables. The absence of necessary facilities is only compounding the problem.

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