BR Research

A dozen citrus-reticulatas please

Published January 10, 2011 Updated January 10, 2011 12:00am

It may account for just a little over 1 percent of the countrys total exports, but it is one of the fastest growing dollar-fetching export commodity types: the fruits.
According to the data released by the Federal Bureau of Statistics, fruit exports from Pakistan - that mainly comprise of mango, kinnow, and dried dates - have been consistently falling, in terms of quantity, since the third quarter of the last fiscal year, and so have been fruit export dollar earnings.
But from about the same time, the per ton price has been persistently rising. FBS data show that Pakistani fruit exporters fetched $644 per ton in November 2010, its highest since December 2007, if not its highest-ever.
Since the FBS data don exactly reveal which fruit is responsible for this, BR Research turned to the Trade Development Authority of Pakistan - only to find out that the file showing sub-classification of fruit export data was last prepared for April 2010. So BR Research turned to the industry to find out whats behind this growth in export rate. Apparently, the story lies in citrus reticulatas, or, in other words, kinnow. In Pakistans fruit export basket, mangos weight is about 19 percent, kinnows is about 36 percent, dried dates is about 23 percent, with the remaining unevenly divided between six categories.
Since mango season has long ended, the rise in price per ton could either be attributed to orange, or dried dates, or both. But since, "local dates were consumed by relief agencies involved in the aftermath of floods", according to Abdul Malik a local merchant, exports of dates actually fell during the period.
It is, therefore, kinnow that is leading the overseas fruit sales. According to Malik, who also chairs the All Pakistan Fruits & Vegetable Importer, Exporter
and Merchants Association (APFVIEMA), local growers have increased the price of kinnow by almost double in the current season.
"Prices have risen to Rs700-750 per 40-kg, from Rs350-400, in the year before," Malik told BR Research. And, in part, this price hike is a result of production shortfall, as in the current kinnow season, that runs from Nov-March, output is seen falling to 1.6 million tons from 1.8 million tons in the year ago period.
The exporters in turn are able to pass on the impact to international buyers, on account of kinnows captive demand, being a unique product, despite slowing prices of oranges in international market that have tapered off by 25 percent in the quarter ending December 2010, according to the World Bank data.
Yet while all this may be working in favour for Pakistan, there is no need for being complacent. The trends in fruit exports suggest that it is not taken as a serious business in the related government quarters - a view endorsed by the exporters association.
Pakistan is still ranked 13th in citrus production yield, whereas it is ranked 5th and 6th in the world in terms of area and production quantity. Another Faisalabad University study cites that approximately 20 to 40 percent of produce is wasted during pre and post-harvest stages. Clearly, there is plenty of room to grow.