November 14, 2002	Thursday	Ramazan 8, 1423

KARACHI, Nov 13: The Export Promotion Bureau (EPB) has called a meeting of kinoo exporters in Lahore on November 16 to discuss the issue of kinoo exports in wooden crates and paper cartons.

The meeting, to be held at the EPB office here, has been called by EPB chairman Tariq Ikram. It will also discuss the shipment of mangoes in wooden crates and paper cartons, a fax message of the Bureau to the exporters said.

A senior EPB official, however, declined to comment as to why the meeting has been called when the EPB had itself announced the rules of kinoo exports in May in which the Bureau made use of paper carton obligatory in place of wooden crates.

However, the EPB’s announcement was not appreciated by the Ministry of Commerce which later asked the Bureau in September to formulate new regulations in consultation with the relevant stakeholders as some exporters had asked the government to withdraw the restriction of cartons.

The EPB was advised by the ministry that there should be a wide based consensus and support of all exporters of kinoo.

The ministry had objected the EPB move of announcing the rules for kinoo export, saying that the instructions imposed in case of kinoo as well as mangoes were in the strict legal sense untenable since the notification SRO1169 issued on August 8, 1973 already stood suspended by the Export Policy and Procedure Order (EPPO), 2000. To provide legal cover to its rules on kinoo, the EPB should have come with proposals in this connection to make necessary amendments in the EPPO, 2000.

One of the leading exporters, who supports kinoo shipments in cartons, expressed surprise over the EPB move when everything is ready to kick start the commodity export from November 15, 2002. “It seems that the EPB has succumbed to the pressure of Pakistan Apples and Citrus Export Board (PACEB) to convene a meeting on this issue,” the exporter said.

The PACEB, two days back, had objected to the new rules of the EPB of allowing kinoo exports in cartons only, saying that foreign buyers are not ready to accept the shipments in such packing.

He said that exporters had already imported cartons from Dubai worth Rs20-30 million, besides arranging some quantity of cartons from a local company. The exporters have opened letters of credit (LCs) worth Rs100 million for cartons import.

He said it was surprising that the meeting had been called when everything was ready. It is also surprising to call 19 exporters at Lahore when 14 exporters are based in Karachi.

An exporter said that he had already started processing of Kinoo in his factory for shipment on vessel sailing on November 16. The prices to growers are being paid same as last year of Rs250-275 per 40 kg.

He said the Ministry of Food and Agriculture on November 4 had informed the Plant Protection Department, which issued certificate of quality shipment, that as per the EPB requirement kinoo will only be exported in cartons of net weight 8 kg, 10 kg and 13 kg in future and cartons less than five to six kg will not be allowed.

A member of Pakistan Horticulture Development and Export Board, Muhammad Sadiqeen asked the Board’s chairman, Afaq Tiwana, on November 12, to maintain the decision taken by the board on November 6 regarding the allowance of kinoo exports only in cartons as exporters have invested millions of rupees on import of cartons.

Forex earnings: Foreign exchange earnings worth $20 million or Rs1.2 billion from export of kinoo are in jeopardy as the different parties have been unable to reconcile with the EPB’s directive to export kinoo in cartons.

The industry had been exporting kinoo in crates and most participants do not find the new directive feasible in terms of pricing and convenience.

The conflict has been simmering over the type of packaging for sometime and remains unresolved even two days ahead of the beginning of the kinoo export season. The season commences on Nov 15.

These representative bodies have entered into a war of attrition by accusing each other for protecting their vested interest and not of the country or exports. Both the sides have put forward strong arguments in favour and against each other to win their case before the government.

Whereas Pakistan Apples and Citrus Export Board (PACEB) is trying to fight the case with the help of their foreign buyers, who they say have asked them to use conventional method of packing material i.e. wooden crates, but others have put strong arguments against it.

Those in favour of using cartons have pointed out that the Export Promotion Bureau (EPB) has rightly imposed ban on use of wooden crates in order to meet world quality standard and quarantine regulations as demanded by different countries.

By using carton pack, Pakistani kinoo which is better in quality and taste than Chinese kinoo, have now started fetching better price in the world market.

Last year Pakistan exported around 4,000 refrigerated containers of kinoo with a minimum export price (MEP) at $0.20 per kg. According to rough estimates each container of 40-feet carries around 25,000 kg of kinoo and earns foreign exchange of around $5,000 per TEU.

Pakistan Citrus Fruits & Persimmons Processors Association (PCFPPA) president Mohammad Sadiq told Dawn the association this year voluntarily fixed MEP (carton pack) at $0.30 per kg fob. He further said if “we strictly follow specific standards such as the colour of kinoo which must be 95 per cent yellow or orange, packaging must be printed with marks and brands and net weight printed on each packing there is no reason that we could not get a price of up to $0.70 per kg which is our target for end season or April shipment.”

“China is exporting kinoo to Indonesia and Malaysia at $0.50 per kg and this is because of better packing and presentation where we totally lack and time have come that these modern methods of marketing be adopted for fetching better price,” he added.