Kinnow exports reach new record high of 370,000 tons

KARACHI: Pakistan has set new record by exporting 370,000 tons of kinnow this season, highest ever export of the fruit from Pakistan in one year.

According to Waheed Ahmed, who is patron-in-chief of Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) and vice president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the export of kinnow started in December 2017 and continued till the beginning of May 2018.

Compared to export volume of kinnow last year, which stood at 325,000 tons, the current season of kinnow has witnessed an ever highest export volume of 370,000 tons leading to generation of $222 million foreign exchange for the country. The PFCCI has played a vital role in enabling the PFVA not only to achieve the export target of kinnow but also to attain the higher export volume, Waheed said. “With consistent support of the FPCCI, the PFVA raised the issue of unrealistically high valuation of Pakistani Kinnow in the Russian market before the concerned Pakistani and Russian authorities in an effective manner with logical arguments, and consequently the Russians expressed willingness to reduce the valuation,” he added.

As a result of the joint efforts by the Ministry of Commerce, FPCCI, and PFVA the restriction of quota system which was imposed on import of Pakistani kinnow in the Indonesian market was also abolished by the Indonesian government. which played a significant role in enhancing exports of kinnow.

Excellent crop of kinnow in Pakistan this year with simultaneous low production in Morocco, a big producer of the product, provided an opportunity to enhance exports from Pakistan to the Russian market, Waheed shared.

For the last seven consecutive years, the export of kinnow to the Iranian market, having volume potential of 60,000 to 80,000 tons, remained suspended. “Stiff competition in the international market with Turkey and Morocco in terms of their quality and price is becoming almost impossible to sustain, and in case these two countries have good crops of kinnow next year, attaining the export volume by Pakistan will be quite difficult,” the patron-in-chief of PFVA said.

“Changes in climatic conditions and lack of research and development facilities in Pakistan are taking a toll by casting serious negative impacts on the production of kinnow and reduction in its shelf life,” he added. The kinnow trees in Pakistan have already completed their life cycle and hence lost endurance to resist against diseases, and thus kinnow orchards having such trees are already suffering from various diseases. “Since new orchards of this fruit are not being planted, it’s feared that kinnow industry and its export would sustain huge losses in the near future,” Waheed said.

By safeguarding kinnow against diseases and with exploration of new varieties of citrus fruits, the kinnow industry can be enlisted among the giant industries of one billion club through value-addition, he pointed out.

Kinnow continued facing issue of “high valuation” from the Russian customs authorities leading to higher cost of Pakistani kinnow in this important international market. The actual value of Pakistani kinnow is $6-$7/10kg, while Russian authority’s asses it at $9.5/10kg. After February, the valuation was revised further upwards to $10.5/10kg making it even more difficult to compete due to the higher cost.

PFVA has raised its voice on this important issue before Pakistani and Russian authorities, while Pakistani diplomats posted in Russia and MoC also rendered assistance in this regard. As a result, Russian authorities have shown willingness to reduce valuation, however due to non-affirmation of valuation by the Federal Board of Revenue (FBR), this serious issue still remains unresolved, Waheed said.

Pakistan can export fruits and vegetables to big markets in China also, availing the unique opportunity of China-Pakistan Economic Corridor. However, due to unsuitable quality of kinnow for the Chinese market, Pakistan is unable to take full advantage of this opportunity.

“With co-ordained efforts, the quality of Pakistani kinnow can be further improved and in the next three years, 50,000 to 80,000 tons can easily be exported to China,” Waheed concluded.