Exports of fresh fruits are growing as improved farming practices boost output and as opportunities of penetrating deeper into conventional markets and exploring new ones increase.

The average annual output of citrus fruits and apples, two main forex earners, has shown an increasing trend in the last ten years (FY06-FY15). The average annual production of mangoes, another major export item, witnessed a big jump during FY06-10 though it has faltered in the last five years, official stats reveal.

However, the lower production of mangoes did not make a big dent in the fruit’s export earnings, thanks largely to joint efforts of the public and the private sector.

Forex earnings through export of citrus fruits have been on a constant rise.

Although Pakistan produces many dry fruits such as almonds, walnuts, raisins, pine nuts and pistachios, output stats of only almonds are compiled by the federal authorities and, as such, facts on the production status of the others remain either unavailable or too scattered.

But according to the officials of KP’s provincial agriculture department where most dry fruits are grown, the army-led action in militant-infested areas has partly helped in the recovery of dry fruit cultivation.

They say that the output of walnuts and pine nuts seems to have increased, given the brisk activity in local markets where dry fruits are traded.

Exporters say new export markets for Pakistani fruits are opening up in China and in the Far Eastern countries

In Balochistan and in parts of upper Punjab where figs are cultivated, farmers also say that they are producing more than before.

Contrary to production, exports of dry fruits are recorded systematically and going by trade statistics of the last five years, one can see a mixed trend in the export of certain dry fruits, officials of TDAP say.

“But, on balance, overall forex earnings of dry fruits have definitely shown a rising trend in the past few years,” says one TDAP official linking it to the recovery of dry fruits production in KP. In FY15, the latest year for which official stats are available, export earnings of dry fruits and nuts (as well as dried fresh fruits) rose to $48m from less than $32m in FY14.

Experts, however, point out that the bulk of the dry fruits exported from the country are nothing but re-exports, adding that every year tonnes of Afghan dry fruits find their way into KP markets unofficially and are exported to the world markets from Pakistan.

They say that before the lifting of the sanctions on Iran, the same was true for some dry fruits coming into Balochistan from Iran.

These exporters guesstimate actual export earnings of Pakistani dry fruits and nuts as far lesser than $48m. They explain that this amount includes not only exports of dry fruits and nuts of Afghan origin but dry fruit preparations as well.

Meanwhile, exports of fresh fruits, which are far larger than that of dry fruits and nuts, increased from $292m in FY11 to $438.5m in FY15 before taking a dip to $427m in FY16. In four months of this fiscal year, the country earned $122m through exports of fresh fruits.

Exporters say if the kinnow export target of $200m is met then total fruit exports in FY17 may reach $450m.

For the past few years, the federal and provincial governments have prioritised enhancing the output of fruit production and managing their quality. In the current fiscal year, for example, the government of Punjab has launched a three-year, Rs227m fruit fly management project for mangoes and guava orchards.

In the Ziarat and Kalat districts of Balochistan, apple gardening and packaging facilities are being set up at a cost of Rs50m. Similarly, a date processing and packaging unit is being set up in the Mekran region to help boost exports of fresh dates grown there. Besides, the Pakistan Agricultural Research Council has recently trained 1,000 farmers of the province in best fruit farming practices.

Fruit exporters say over the years the value chain of fruits has improved but a lot still needs to be done particularly in terms of setting up inland transportation. They also lament that the promised funding for setting up fruit and forest plant nurseries (launched last year under the prime minister’s scheme for youth loans) is not coming.

Exporters say new export markets for Pakistani fruits are opening up in China and in the Far Eastern countries. And access to European markets has improved after stricter compliance of their fruit import standards.

But the government support in marketing is amiss. “Our foreign trade missions usually don’t help us tap export opportunities the way the Indian and the Chinese do. We often hear of new opportunities opening up in certain markets long after our competitors have already tapped them,” says an official of the Pakistan Vegetable and Fruit Exporters Association.

“Besides, online export marketing facilities are almost non-existent. One reason for this is that web portal managing companies or individuals don’t get bank funding.”

In addition to this, structural issues like lack of cold chain facilities and high post-harvest losses in fruits (as well as dry fruits) continue to mar export potential. The provincial governments of Punjab and KP claim to have made progress in these two areas. In Punjab the participation of the private sector is more visible.

Two separate programmes, one each for kinnow and mangoes, have reduced post-harvest losses of citrus fruits and mangoes with the help of the private sector, officials claim.

Published in Dawn, Business & Finance weekly, December 12th, 2016