Financial benefit can increase kinnow export.

Byline: Khalil Ahmed

With significant increase in the sea freight cost and ill-effects of climatic changes, the reduction in the production of kinnow has emerged as a barrier to export kinnow from Pakistan during this year. The exporters of kinnow are in a state of uncertainty and export during the current season is likely to be limited to 300,000 tons with an anticipated decrease by 35% compared to the previous year. While talking to PAKISTAN and GULF ECONOMIST, Mr. Waheed Ahmed, the Patron-in-Chief, All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA), said the exporters of kinnow are in a state of uncertainty during the current season of kinnow. As of now, large-scale preparation for export of kinnow has not yet started, although the season was due to commence from 1st December 2021.

A few kinnow factories in Sargodha are making preparations for the export. The export of kinnow faces stiff challenges due to the exorbitant increase in cost of sea freight. Last year the export of kinnow was 450,000 ton against the export target of 350,000 ton. It is anticipated that the export of kinnow will remain around 300,000 ton during the current season, 35% less compared to last year. Due to the crisis of high sea freight cost this year, the export of kinnow from Pakistan is likely to badly suffer to the international markets of Russia, Canada, Ukraine, Indonesia, and Philippines, since Pakistan exports 50% of total; export volume of kinnow to these countries.

The cost of sea freight to Russia, an important international market, during the previous season was USD 2500-3000 per container which has now been enhanced to USD 7000 per container. Similarly, the sea freight cost to the Philippines, Indonesia which was USD 2000 has now increased to USD 4000-5000.

Simultaneously, with an exorbitant increase in the cost of sea freight, the shipping companies do not have any definite schedule. Due to the perishable nature of fruits and short shelf-life, there is no guarantee that the fruit consignments would reach their destinations in time. Under the prevailing circumstances, the cost of export as well as uncertain situations from shipping lines, the export of kinnow from Pakistan is likely to be badly hit.

Pakistani kinnow used to be sold in the Russian market being cheap compared to kinnow from Morocco and Turkey. 10kg. cartons of Pakistani kinnow used to be USD 5-6 less than 10kg cartons of kinnow from Morocco and Turkey...