Export of Pakistani mangoes to United States is facing strict rules and regulations imposed by United States Department of Agriculture (USDA) and Animal Plant Health Inspection Service (APHIS) making it difficult for Pakistani exporters to do business with US importers.
Although sanitary and phytosanitary approvals have allowed the export of Pakistani mangoes to the United States for the first time, a big leap looks rather impossible to be achieved in the export of the fruit under the prevailing situation. Pakistan and the United States had renewed their commitment to the Agricultural Investment Strategy and ongoing agricultural development projects such as the mango export project through the US-Pakistan Strategic Dialogue in October 2010.
On the one hand United States has allowed its traders to import mangoes from Pakistan, on the other hand it has put so many conditions that it doesn't seem viable to do business as US importers are reluctant to take any risk in importing mangoes from Pakistan, according to the Chief Executive Officer, Harvest Trading, Ahmad Jawad. USDA/APHIS has a very long and extensive requirements and regulations list, which may effect negatively on the possibility of importing Pakistani mangoes. APHIS, a subsidiary of USDA has approved only Sadex Corporation for the irradiation of Pakistani mangoes on arrival in United States, which is not showing any flexibility in dealings.
The requirement is that if any importer in US brings minimum order individually "liability" premium will cost around USD 6000, which means to be the highest individual expense for whole project. Almost all the importers are reluctant to take that risk. Sadex have very strict conditions and they are not willing to be flexible. "Things are not looking very bright unless they change their requirements," Ahmad Jawad said.
About Commercial General Liability Insurance, he said that the customer (importer) will provide Sadex with a letter of proof of insurance from a national insurance provider acceptable to Sadex with its principle office and place of business in the United States listing Sadex as an additional named insured as per the following requirements.
Any insurance maintained by the customer (importer) shall be considered primary over Sadex's insurance. During the term, the customer (importer) shall, at its sole cost and expense, procure and maintain commercial general liability insurance with combined single limit coverage in an amount not less than USD 5,000,000 per occurrence, which is endorsed for product liability and completed operations, which shall cover the customer's (importer's) indemnification obligations set forth in the agreement and include Sadex as an additional named insured. The customer's (importer's) insurance shall be primary and Sadex's insurance shall be in excess of the customer (importer's) insurance.
Similarly, Pakistan International Airlines (PIA) charges Rs 285 per kg which is approximately USD 3.35 for commercial shipment of mangoes from Lahore to Chicago and this will also put heavy burden on the export process of mangoes. The C & F (Cost and Freight price) USD 12 per two-kg mango carton (excluding other costs, which will be borne by the importer in US).
The ministry of food & agriculture was the main stakeholder in this project but now after the 18th Amendment, this ministry will soon be abolished and given to provinces, which may have a negative impact on taking up this matter with US officials. "If we fail to fix this issue, we might loose the good market," Jawad said.
If we want to grab the US market in true spirit then we should start the irradiation process of mangoes in Pakistan, which India is already doing to reduce the cost factor. Further delay will bring more doubts in the minds of our competitors which have been quoted saying: "Is Pakistani mangoes a code word for something we should know more about? Some dark and devious new plot that exports atom bombs in cases of mangoes? If not why is Pakistan having any difficulty selling mangoes." As a matter of fact people in the United States have anxiously been waiting for Pakistani mangoes due to their exotic taste since 2010.
Pakistan had a good crop of mango this year regardless of some climatic factors in Punjab and Sindh areas but there is sufficient surplus for export. Mango export has already started and we hope to export more than 150,000 metric tons of mangoes, most of it through sea and about 22,000 tons by air to different countries.