Mango exports of Pakistan earned $94.059 million in foreign exchange during two years as 129,423 tons of mangoes were exported to various countries during the period between 2014-16. During 2014-15, Pakistan exported 65,311 tons worth $45.672 million while in 2015-16, 64,112 tons were exported valued at $48.387 million.
Most importing countries require vapour heat treatment and irradiation before accepting exports. The government has taken steps to improve quality including establishing of standard operating procedures (SOPs) for growers for effective farming and cultivation. The government has established 34 ripening chambers along with banning the use of calcium carbide.
Mango exporters blame airlines for losses. Packaging in wooden crates has also been banned to avoid damage incurred due to nails, rough surface of the wood. The government has facilitated sea-freighted export of fresh mangoes to lower transportation costs and makes the exported mangoes more competitive in the European market.
Mango Export Target Adjudged At 100k Tons For 2018
During the current season of mango the export target of mango has been set as 100,000 metric tons.
The production of mango is expected to be less than 35 percent due to bad effect of the acute shortage of water and global warming.
The CPEC route would also be utilized first time to export mango to China.
Foreign exchange of USD 95-100 million would be generated by attaining the export target of 100,000 tons.
Devaluation of Pakistani currency coupled with the export of mango during fasting month would further enhance export revenue.
The Gulf countries, United Arab Emirates, Saudi Arab and European countries would be major buyers of Pakistani mangoes, however, queries in abundance from Chinese buyers are pouring in, expressing keen interest for import of Pakistani mangoes.
It would be the first time that Pakistani mango would be exported to China through CPEC route and around 500- 2000 tons is anticipated to be exported to China.
China can emerge as a big market for Pakistani mango, once it’s fully developed where 20,000 tons of mangos could be conveniently exported while 150 tons of mangos is to be exported to Japan.
Mango promotions in China, Maldives, and European countries would be held during this year to further enhancement of export of mango.
Iran is also an important buyer, however, due to the unusual devaluation of Iranian currency, the exporters are not expecting to get the good return value of their export.
Climate changes and Global warming are serious potential threats to the production of mango and due to its poor impact overall production of mango was 50 percent less than last year while it’s continued weak impact is anticipated to lead to 35 percent less production.
Concurrently with low production the smaller size of mango is also of great concern to the exporters.
Due to increase in demand and shortage of supply this year, the wholesale price of mango is expected to increase.
Due to the relatively long winter season in different mango growing areas, the production has been mostly hit while on another hand due to climatic changes, the mango is encountered with attacks by new diseases which would lead to low production.
The airlines should keep the cost of Air Freight within the reasonable limit, keeping the current crises of a balance of payment.
Pakistan is faced with so that increasing cost of production, making it difficult to compete in the International market can be brought down to effectively encounter competitors.
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Mango Production May Drop By 35 Percent
Acute water shortage may cause 35 percent fall in mango production this year. Due to relatively longer winter season in different mango growing areas, production has been badly hit.
The mangoes have been attacked by new diseases that have contributed to lower production.
Shifting the agriculture sector to the provinces through the 18th Amendment has not yielded the desired results for lack of coordination among the provinces.
Mango exports from India made their maiden entry into South Korean market but received poor response due to complaints of quality and packaging.
Complaints over India’s Alphonso variety were also raised in the European Union (EU), which can further boost sales of Pakistani mangoes in European markets.
Mango exports during 2016-17 totalled 128,000 tons valued at $68 million, according to a statement.
The adoption of innovative business practices by local exporters such as forming partnerships with local airlines of target countries and using e-commerce to explore and exploit those markets.
Such steps have already yielded results with a prominent exporter selling 55 tons of mangoes in the US alone due to improved supply and distribution.
Under these circumstances, the government should give a subsidy on air freight charges.
Mango production is feared to fall 35 percent short of 1.8 million tons annual target as long winter and fungus affected the area under cultivation; although a 19 percent jump in exports is expected on new shipments to China and Europe.
Pakistan Fruits and Vegetables Association (PFVA) said low production is expected due to acute water shortage and global warming.
Climate changes and global warming are posing menace to the production of mango and due to its adverse impact overall production of mango has been lower than the last year.
Mango orchards in Sindh, including Hyderabad, Tando Allahyar and Mirpur Khas would severely be affected. The same goes to Punjab where overall production of mango is anticipated to decline 30 to 50 percent in mango-growing areas, including Muzzafar Garh, Multan, Rahim Yar Khan and Shujabad.
PFVA chief said smaller size of mango is also of great concern to the exporters. Due to increase in demand and shortage of supply this year, the wholesale price of mango is expected to increase.
There was relatively longer winter season in different mango growing areas, while new diseases also affected the fruits.
Exporters, however, set 100,000 tons of exports target for the current season. Exports are starting from coming as China-Pakistan Economic Corridor’s route would be used for the first time to export mango to China. Last year, 81,000 tons were exported against the target of 100,000 tons due to a 50 percent reduction in production. Foreign exchange of $95-100 million would be generated by attaining the export target of 100,000 tons.
Pakistani mango is popular worldwide. Its exports are expected to increase on growing demand in Ramadan and rupee depreciation. Gulf countries, United Arab Emirates, Saudi Arab and European countries would be major buyers of Pakistani mangoes.
Queries in abundance from Chinese buyers are pouring in, expressing keen interest for import of Pakistani mangoes. It would be first time that Pakistani mango would be exported to China through CPEC route and around 500-2,000 tons are anticipated to be exported to China.
The industry official said China can emerge as a big market for Pakistani mangos and “once it’s fully developed 20,000 tons of mangoes could conveniently be exported.”
Mango promotions in China, Maldives, and European countries would be held during this year to further enhance exports. In order to attain export target, it’s vital to maintain political stability and good law and order in the country while cooperation and support from airlines, shipping companies, customs and department of plant protection is also necessary.
Packaging Policy Concern
A number of exporters are not following standardized packing for mango exports which started last week. The Ministry of Commerce, through an SRO in 2013, had clearly defined the weight of standardized packing of the fruit from 1.5-8kg with intervals of 0.5kg and variations in weight on either side.
Chairman All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association had informed Finance Minister Miftah Ismail through a letter on May 23 that this SRO had never been implemented in spirit by the concerned customs authorities since the time it was initiated.
The practice of non-standardized packaging is followed by many exporters, tarnishing the country’s image as the weight stated on the box does not conform to the actual weight. As a result, law-abiding exporters are sustaining financial losses.
The compliant exporters are unable to compete with defaulters who manage to sell their export mangoes cheaper in the international market as they pay lower freight cost (less actual weight than stated on the box).
In comparison, exporters following the government order suffer financially as they pay relatively higher cost of air freight due to no discrepancy between the stated actual weights of mangoes.
The Ministry of Commerce should issue necessary directives to the customs authorities for ensuring strict monitoring and compliance in this regard to differentiate between compliant and non-compliant exporters.