Ferrying perishables to Dubai

Published November 11, 2013
- File Photo
- File Photo

Pakistan is actively considering initiating a private ferry service from Karachi to Dubai to boost the export of perishable fruits and vegetables to make up for possible loss in export earnings following the rejection of some odd consignments by importers and the ban imposed by Russia early last month.

“If the current negotiations with a private company succeed, the government may consider giving permission to other shipping lines,” an insider in the ministry of commerce told Dawn.

“It would make our products globally competitive, as sea transportation is at least six times cheaper. To be effective, however, Pakistan will be required to invest and educate growers and traders in post-harvest technologies and modern packaging techniques to meet stringent health standards of importing countries,” a technocrat in the relevant department in the ministry in Islamabad told this writer.

Azizur Rehman Shaikh, who is associated with Ned-Pak — a consortium of Dutch and local technical experts of fresh fruits, vegetables and flowers, that specialises in post- harvest technologies — said his company sees Pakistan as a virgin market with an enormous potential.

“I am an incorrigible optimist who does not like wasting time counting odds but likes to look ahead and focus on opportunities. We are introducing new, internationally acceptable packaging products (specialised MAP bags and cartons and open ledge trays instead of traditional cartons) to support and extend the shelf life of fresh produce,” he said.

These special bags are “breathable and control carbon dioxide gas levels, prevent anaerobic conditions and excessive odor accumulation. They reduce weight loss and decay, preserve firmness, and slow the ripening process to increase shelf life”.

He claimed that exporters who used his cartons, data loggers, pallets and pallet corners for long distance export of mangoes saved 25 per cent in logistics cost and prevented wastage.

Abdul Malik, chairman of the Pakistan Fruit and Vegetable Association, was, however, not so much optimistic about attaining export potentials. “I find the situation scary, with the world topping up already stringent health standards for food import, and with the complete lack of coordination and corruption in local agencies that are vested with quality control of exports,” he said over telephone.

“My intention is not to cast anyone in a negative light, as, in my view, everyone from farmers to retailers in local and overseas markets share the blame for not doing enough to build credibility and to adjust to the demands of the times. A lot needs to be done throughout the value chain for a turnaround,” Malik told this writer over phone.

“The government needs to ensure, through education and persuasion, that growers adhere to good agriculture practices (GAP) not only for certification but also for improving productivity,” he said.

The performance of the Trade Development Authority of Pakistan and the Pakistan Horticulture Development and Export Company (PHDEC) raises more questions than provide answers as to why the country is not gaining much, if not losing out, on horticulture export.

“These are specialised institutions, and there must be some good people serving in these entities. But to put it mildly, they have failed to deliver on their mandate. Kindly do not forget to inform the public if you find out anything meaningful these entities have done, besides using precious little to do everything but what they aught to do,” complained a bitter exporter.

Bashir Hussain, CEO of PHDEC, was not available, but Hashim Leghari, the company’s officer in Karachi, defended his firm, even though he admitted that the situation is far from satisfactory.

“It is unfair to use PHDEC as a scapegoat for the country’s poor performance in the export market. We are doing our bit by spreading awareness, but the situation is too complex. Besides, we cannot force people to comply with standards, as that is beyond our mandate,” he argued.

TDAP’s chief executive has not been appointed yet in the midst of scandals, and its secretary, Rabia Javeri Agha, could not be reached in her office in Karachi.

Hamid Ali, CEO of Koldware Industries, another known market player, was sad over how fruits and vegetables were being grown and marketed.

“Quite often, greed drives businesses. In horticulture, sheer pursuit of profit cannot develop or even sustain business. Agribusiness requires some element of respect for nature. If you can trample ripe fruits under your feet, this trade is not for you. I am not surprised that the Agriculture Support Fund withdrew $50 million from $90 million as the selected beneficiaries flouted terms and conditions of the programme and under performed,” he told Dawn.

“Price volatility in the local fruit and vegetable market and the rejection of high value consignments of perishables in the international market tell a gory tale of corruption, mismanagement and mishandling of precious produce at post-harvest stages,” lamented another player in the market who requested anonymity.

Tomatoes (normally priced at an average of Rs25 per kg) were being sold for as much as Rs200 per kg at certain retail points in many cities last week. This is not a one-off incident. From onion to chilies to greens, the price fluctuations are common occurrence and are often hard to justify, he argued.

Pakistan grows 40 different vegetables in about six per cent of the total cropped area, and 21 types of fruits. Major veggies include potato, tomato, onion, garlic, chillies, turnip, okra, spinach and bell pepper.

Fruits grown in different regions of the country include mango, citrus, apple, dates, guava, grapes, peach, plum, melon, pomegranate and banana.

According to a decade-old study, losses in fruit and vegetables are estimated to be as high as 50 per cent.

According to the latest Pakistan Economic Survey, export proceeds from fruits and vegetables rose to $556 million in the last fiscal, up from $458 million a year before. The exports of vegetables grew by 57 per cent because of the narrow base, while those of fruits rose by a moderate six per cent. —Afshan Subohi

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