KARACHI: Businessmen invested Rs1.3 billion in upgradation of pack houses for fruits and vegetables, setting up hot water treatment units, ethylene chambers, vapour heat treatment plants and pulp units this year.

Major investment was made in setting up of 43 pack houses.

There were only two hot water treatment units, eight ethylene chambers and no vapour heat treatment and pulp units in 2014. Now there are 29 hot water treatment units, 39 ethylene chambers, two vapour heat treatment plants and one large pulp unit.

Fruits, vegetables and juice exports showed continuous growth from $154 million in 2005-06 to $671.5m in 2014-15. However, the share of Pakistan in these three categories was just 0.56 per cent of $114bn global exports in 2014.

In July-Aug 2015-16, fruit exports declined to $39.5m (49,970 tonnes) from $45.6m (90,089 tonnes) in the same period last year. Vegetable exports swelled to $34m (121,069 tonnes) in July-Aug 2015-16 as compared to $16.4m (54,920 tonnes) in the same period FY15.

In value addition sector, Pakistan’s exports of kinno juice concentrate, mango pulp, clarified apple juice concentrate and apple puree came to just $4.2m out of the $25bn world exports.

When asked why Pakistan held a negligible market share in world export, Chairman Pakistan Fruits and Vegetable Exporters, Importers and Merchants Association (PFVA) Waheed Ahmed attributed it to the high cost of production due to lower yield, poor quality of produce owing to lack of research and development (R&D), no serious efforts to introduce new varieties and smuggling of fruits and vegetables through land routes to neighbouring countries.

“Pakistani kinno was already facing an alarming situation owing to acute viral diseases and insect infestation (60pc of total crop). As a result the $176m market is badly hit,” he said.

Russia is the second largest market for kinno. The C&F price ranges between $650-700 per tonne while Russian Customs makes its valuation at $900 per tonne for December to January period and $1,050 per tonne from February onwards.

He stressed that Pakistan immediately needs to negotiate a Free Trade Agreement with Russia.

Waheed said some untapped commodities for export are banana, guava, ber, chiko, papaya and jaman and vegetables are bitter gourd, okra, tinda, gourd, cauliflower and eggplant.

The government should create a R&D fund of Rs8bn over a period of three years for promotion of horticulture produces.

In view of existing barriers in the horticulture sector, there is a need to maximise investment in R&D for product development as well as strong supply chain system, he said.

Short- and long-term measures are needed which could boost the export up to six billion dollars in the next 10 years, he added. Land routes to the neighbouring countries should be strictly checked to stop smuggling. The exporters should be given new location which would help in growing new varieties in separate areas.

The PFVA chief said that in the existing road map, association members are aiming to increase investment. “Modern farming can increase horticulture exports followed by good agriculture practices for availing high quality yield of crop production in growing area.

Published in Dawn, October 8th , 2015

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