Fruits & vegetables: Exporters identify impediments to growth

Acute shortage of reefer containers and increase in freight charges pose serious threat to exports of fruits and vegetables, exporters said. They said that the exports of fruits and vegetables is facing difficulties due to shortage of reefer containers and the factor for the existing acute shortage of reefer containers can be attributed to a reduction in the volume of import cargo followed by the marked downward trend in the import of products from China which is having a pronounced negative impact on exports of Pakistan.

It is peak export season for kinnow, potato and onion but due to acute shortage of empty reefer containers, the export is likely to hit badly. One hundred reefer containers per day consisting of Kinnow, Potato and Onion are being exported from Pakistan and after suspension of the import of Garlic from China, the Chinese's Garlic is also being re-exported from Pakistan. Against the demand of 1500 reefer containers per month, around 1000 reefer containers are hardly available, they mentioned.

According to Waheed Ahmed, the Patron-in-Chief, All Pakistan Fruit & Vegetable Exporters, Importers & Merchants Association (PFVA), the opportunity to export onion from Pakistan has further brightened after suspension of export of onion from India and likewise the export of Kinnow is also on the peak now.

Around 600 plus reefer containers of Kinnow and the same volume of reefer containers of Potato and Onion are being exported per month from Pakistan. Besides, Garlic, different other fruits and vegetables are being exported as well and this is a unique opportunity to enhance export manifolds, however, the acute shortage of reefer containers is likely to cast its ill shadow on this golden opportunity, he mentioned.

The crisis of shortage of reefer containers arising from low import volume in the country has further deepened due to a reduction in the import of various products from China.

In addition, an increase in freight charges by the shipping companies has also multiplied the cost of export further narrowing the thin profit margin. During the last two months, the shipping companies have increased freight charges extra-ordinarily and due to this abnormal increase, it's becoming increasingly difficult to grab the opportunity of exports' enhancement, Waheed said.

He mentioned that two months' back, the shipping companies were charging USD 1200 per container as a freight charge for Colombo and now it's USD 1900 per container.

Similarly, the freight charge to Malaysia seaport Kelang has been increased from USD 900 to USD 1,600 per container, USD 1,700 to USD 2,400 per container for Chittagong while freight charge for Dubai has been enhanced from USD 1,000 to USD 1,400 per container.

"Under the prevailing circumstances, it has now become difficult to attain the export target and the adviser to the Primer on Commerce Abdul Razzak Dawood has also been informed through a letter on this disappointing situation," he said.

The association (PFVA) has also appealed to the government to take an immediate notice of freight charges increased by the shipping companies and negotiate with them to get an assurance from them to maintain freight charges to a reasonable level, otherwise the opportunity now available to enhance export would be seriously jeopardized, he warned.