Costly air cargo squeezing juice out of mango exports

KARACHI: The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) on Friday said the mango exporters are frustrated because big-ticket airfreight is not letting them tap the ripe international market at competitive rates. 

“More than 50 percent of mango is shipped by air due to its short shelf life, and the way the cargo rates are shooting up every year, exporting mangoes to high value markets will become next to impossible down the line,” Ahmad Jawad, Regional Chairman on Horticulture Exports Committee, said in a statement.   “For example, airline freight rate from Karachi to London is $1.72 per kg, while from Mumbai to London it is $1.26 per kg, which clearly indicates Indian mangoes have a huge competitive edge over their Pakistani counterparts.” 

Jawad added that this year country’s mango production also suffered due to the long hail storms in South Punjab and unexpected climatic changes, which would suffer the export target as well. “Pakistani mango exporters are likely to close at around 80,000 tons by the end of this season,” Jawad said. 

The FPCCI official said that though last year, export value of mangoes was between $680 and $700 per metric ton; however, this season it would be around $650 per metric ton. “The aviation ministry is urged to come up with a mechanism to streamline the international cargo rates to facilitate fresh produce exports. “Similarly commerce ministry is also requested to devise a mechanism under which any new entrant should be given a 15 percent reimbursement on the invoice value to encourage the exporters,” said he. 

The apex chamber committee chief also requested the Punjab government to reserve funds in the the budget to encounter the menace of climate changes during crop production.   “The climatic change is a big challenge for the entire agriculture sector, including horticulture, but technology can be utilised to find appropriate solutions,” Jawad said adding, with the use of modern technology the damage caused by the hail storms can be avoided and losses minimised.