The ban imposed on the use of wooden crates, boxes and cases in exports of fruits and vegetables, effective May 20, has come at a time when exporters are struggling to push up foreign sales.

The decision follows growing complaints from many buyers about fruits and vegetable consignments in wooden packaging, and found lacking in quality, having been infested with pests.

Officials of All Pakistan Fruits and Vegetable Exporters Association admit that many routinely used crates, boxes and cases made of untreated wood in exports of fruits and vegetables. Had these exporters been using packaging containers made of properly treated and polished wood no such complaints would have arisen in the first place and the authorities would not have to announce the ban; not at least in case of such export destinations that accept fruits and vegetables packaged in treated wood.

Substandard packaging translates into limited gains in per unit prices and keeps export earnings low

But now, as things stand the ban is complete and unconditional which means that all exporters will have to switch over to packaging containers made of corrugated papers, card boards and permissible plastic grades.

This issue highlights the importance of meeting the international packaging standards in food exports.

The Department of Plant Protection of the Ministry of National Food Security and Research had advised exporters in the past that use of wooden crates, boxes and cases in exports of perishable items is against the guidelines of ISPM-15, to which Pakistan is also a signatory. But such reminders had fallen on deaf ears leaving it with no other option but to enforce a complete ban, officials say.

Substandard packaging, despite enhanced availability of exportable surplus, translates into limited gains in per unit prices. And that keeps export earnings low.

In last four years, (between FY11-FY14), Pakistan exported around 2.7m tonnes of vegetables and 2.9m tonnes of fruits. But cumulative earnings from exports of fruits and vegetables remained a little less than $2.4bn.

Officials of Trade Development Authority of Pakistan say right packaging can boost earnings from exports of fruits and vegetables adding that right now export earnings are ‘very moderate’.

They are particularly concerned with the export earnings of vegetables that averaged around $230m per year between FY10 and FY14 and believe that proper packaging is more of an issue for veggies than for fruits.

Because of poor packaging, fruits and vegetables are often found dumped in the basements and back-shelves of the supermarkets in European and even in the Middle Eastern countries. And, only those consignments in proper packaging like bags made of nylon ropes or plastic trays with holes in them for aeration are showcased.

In recent years, local packaging industry has come up with a broad new range of fruits and veggies’ packaging containers, cases, boxes, crates, bags and these things are also routinely imported from various countries. The problem lies with the mindset of some exporters who, instead of taking a long-term view of export markets, try to earn dollars and compromise on packaging.

Foreign buyers are environmentally conscious and look for complete compliance of international standards such as Global Care, Global Gap and ISO etc. Consignments are sent to Dubai from where these are often re-exported to buyers in Bahrain, Iraq, Lebanon and several European countries that do not accept perishable items in wooden crates. Direct exports to these countries in standardised export packaging can significantly increase our export earnings, leading exporters say.

With the mango export season about to begin, many small fruit exporters who had long been exporting mangoes in wooden crates are contacting leading exporters who are used to exporting ‘the king of the fruits’ in better and more attractive cardboard boxes.

Published in Dawn, Economic & Business, May 4th, 2015

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