Iran, which had been charging a nagging 90 percent customs duty on import of Pakistani kinnow, has totally waived the duty from January 4, 2011, allowing duty-free import of the fruit from Pakistan into Iran. Iran is a major market for Pakistani kinnow and, following the import duty waiver, a month earlier than normal exports of the fruit would take a big leap forward during the on-going season.
Pakistani exporters have appreciated this move and consider it a boom for growers-shippers, Iran being a key market. Pakistan Horticulture Development & Export Company (PHDEC) estimates that the volume of export of kinnow to Iran will increase up to three times only because of duty waive off.
Pakistan exported 360,000 tons of kinnow in 2009-10, of which about 44,000 tons was the share of Iran only. The impact of the waiver would take Iran's kinnow imports to 130,000 tons and, finally, the figure of kinnow exports from Pakistan may touch 400,000 tons.
Ahmed Jawad, Chief Executive Officer, Harvest Trading, told Business Recorder that the government of Iran normally relaxes the tariff from February 4 to protect Iranian farmers who produce mandarins themselves. However, this season, Iran has suddenly relaxed the tariff from January 4. In case of Iranian market remaining closed, the country would lose 80,000-100,000 tons of kinnow exports this year.
In Pakistan, citrus fruits are the most important crop, grown on an area of 160,000 hectares. It is grown in all the four provinces, but Punjab produces over 95 percent of the crop because of favourable growing conditions and adequate water supply. Citrus is divided into different groups--sweet oranges, mandarin, grape fruit, lemon, and lime--which are being grown commercially.
Kinnow, known as mandarin, is mainly grown in Punjab and, to a lesser extent, in northern Indian states. Pakistan is the 6th largest producer of kinnow and oranges in the world. The kinnow season starts in November and ends in March, which is a longer picking period than any other citrus variety. It is consumed directly as well as in juices.
The government has set a target of exporting 300,000 tons of kinnow during year 2010-11 as against the exports of around 250,000 tons registered during last year. Although Pakistani exporters have appreciated this move, a couple of them, however, have expressed concern to the extent that increased supply to Iran would increase competition among them and bring down the unit price.
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