Traders slash kinnow export forecast by 43pc after bad crop

KARACHI: Traders have slashed their current season kinnow export forecast by 43 percent after climate change destroying crops and decimating yields in the Punjab province.

The bad crop will lop nearly $80 million for the value of exports, with the forecaster pegging the value for the year at $120 million. They expect to export around 200,000 tons of kinnow for the season started on December 1, compared with 350,000 exported last year.

"The export target is at the lower side after crops in Punjab were damaged," Waheed Ahmed, an official of PFVA said on Tuesday. “The value of exports will be 40 percent less the season.”

 Ahmed said the traders have decided to export less but quality citrus to avoid any ban from importing countries. “Any poor quality dispatch can provoke ban on import from Pakistan for at least this season,” he added.

The Pakistan Fruits and Vegetable Exporters, Importers and Merchant Association (PFVA) forecast total harvest of 1.65 million tons this year.

“From the start of the season, exports are slow and the country may not continue export of the fruit beyond mid of February this season.” Last season exporters offered cargoes till mid of April.

Ahmed said dispatch of quality kinnow is likely to fetch $6.5/10kg as compared to $6/10kg last year.

The country would largely export kinnow to traditional markets, including Russia, UAE, Philippine, Indonesia, Bangladesh, Sri Lanka, Hong Kong, Singapore, Canada and a few other countries.

"This is unfortunate that the crop size has slashed because of the climatic change, which is now a major challenge for growers, exporters and government institutions," he said. "Climate change did not allow the crop to grow to their matured size and taste."

Ahmed said Pakistan can extend kinnow export season from December to March through induction of other varieties of citrus fruits through research and development to compete in the $15 billion of global citrus varieties and its value-added products market.   Ahmed said Iran was a huge market of around 70,000 ton for Pakistani kinnow but the country could not export there beyond 1,000 tons this season due to various pending issues. “The issues include significant increase in import duty by Iranian government, and its reluctance in issuing permit to Pakistani exporters,” he said.

In addition, reluctance on the part of Pakistani banks in issuing E-form for export to Iran following the US economic sanctions on Tehran, is further discouraging exporters to look towards the nearest lucrative market.

"With the removal of trade barriers, Islamabad may easily export 100,000 tons of kinnow to the single country," Ahmed said.

Besides, exporters would also try to tap markets in Thailand, which is another lucrative market of this fruit after Iran. "Thailand is already importing citrus fruits worth $145 million from China, Taiwan, Australia South Korea and others."