Government must discourage private sector from exporting country's prized fruits, ie Kinnow and mangoes to commissioned markets where the return is minimal. Mango export season is about to start from the middle of next month throwing a challenge to exporters to enter the non-traditional markets where the demand for Pakistani mangoes is large enough to earn the much required foreign exchange for the country.
Ahmad Jawad, Chief Executive Officer, Harvest Trading - Pakistan (HTP) told Business Recorder that private sector must concentrate on countries like Australia, Japan, Turkmenistan, Sudan and Iraq who offer a huge market for the export of these fruits. These countries have big potential but have remained un-exploited due to the negligence and weak policies of the government, he said.
He said government must look towards encouraging exports of fresh produce, particularly Kinnow and mangoes, urging at the same time Federation of Pakistan Chambers of Commerce and Industry (FPCCI) to wake-up and play an active role in discovering new markets and increasing country's exports of fresh fruits and vegetables which were in great demand in the non-traditional markets. There is urgent need to exploit these markets.
Jawad said that currently 70% of Kinnow and mangoes are being exported to Iran, UAE and Saudi Arabia which are commissioned markets and not a big attraction by any standards for exporters of fresh fruits and vegetables. Every year exporters suffer a huge loss for want of proper marketing strategy to access other profitable markets, with the result that Pakistani exporters do not get better returns, he regretted.
HTP, a professional export firm, has been set-up to exploit the enormous potential of Pakistan's horticulture products in the global market, keeping in view the impact of globalisation and WTO regime. Ahmad Jawad, emphasised that government should draw a workable strategy to lift the exports of fresh fruit produce industry. "Our focus should be on emerging markets with regard to Kinnow and mangoes which are ready to absorb as much as we are able to export."
He said due attention be paid to research and development (R & D) without which achieving targets would be difficult, if not impossible. On paper our economy looks good and flourishing but no impact is visible anywhere on the life of the common man, he said.
Jawad quoted from Australia Center for International Agriculture Research which mentioned in its latest news bulletin that Pakistan contributed more than 4% of the world mango production but received the lowest average price per kg of any major exporting country in the world due to poor quality.
"We can not only meet but even exceed our export target of USD 20 billion for the year 2010-11 if proper attention is paid to exploit Russian market, as its imports, particularly food and agriculture items, worth USD 35.2 billion from all over the world. We can achieve better results if we strengthen our relations with Russian government and create proper banking channels," he said.
HTP has introduced its first domestic project known as Harvest Rive in 2 kg standard packing in the leading stores of Islamabad/Rawalpindi and next month it will be in Multan and Bahawalpur. It prepares the product which gives a natural taste for the customers and purity which is essential in the current scenario.
He has suggested a seven point plan to the government with the combination of development loans from the banks to the exporters, which could go a long way in boosting Pakistan's fresh produce industry exports through public/private sector partnership:
-- Determine the quota of exporters for every year (in the field of citrus fruits and mangoes) on the basis of their performance or the category of bigger or smaller in order to strengthen the process which would help to increase foreign remittances as well as bring better results in exports.
-- In order to save the exporter end, State Bank of Pakistan may issue notification that perishable exports must be on importers bank guarantee or letter of credit.
-- Five year strategy should be drawn for the fresh produce industry with the help of some consortium.
-- Quarterly meetings should be held under the umbrella of Trade Development Authority of Pakistan (TDAP) and Pakistan Horticulture Development and Export Company (PHDEC) on resolving exporters' problems, if any.
-- Determine the countries in the light of quota for registered export firms, and training and development in quality packing and quality product measures under Ministry of Food & Agriculture (MINFA) umbrella,
-- Export committees of respective chambers may also need to be activated and they should highlight their member's issues before the government.