China imported from Pakistan first ever container of 26 tonnes of kinnow under the free trade agreement (FTA) opening the huge Chinese market to the fruit trade between the two countries.
The preferential treaty allows a zero customs duty facility on Pakistan’s horticulture products like kinnow, mango and vegetables, which is a big opportunity for grabbing the Chinese market.
An official in the commerce ministry said the opening of kinnow export to China was mainly the outcome of the signing of an agreement on quarantine issues between the two countries. Under the agreement, the export of kinnow would be subject to a cold treatment at 1.67 C or below for 17 consecutive days or 2.2 C for 21 days.
The horticulture development export board estimated that export of kinnow to China would be over 100,000 tonnes within next four to five years if Chinese quality standards are met by the kinnow exporters.
The Chinese local citrus crop ends in February, whereas Pakistan citrus crop last till first week of April, indicating a huge potential for export of kinnow to China in the off-season. The horticulture board has already conducted studies to assess different mango varieties being sold in Chinese market in order to form future strategies for promotion of Pakistani kinnow and mango.
Statistics compiled by the horticulture board showed that the export of kinnow had crossed 80,000 tonnes by January 31, 2008 mainly due to revival of the Russian market. The exporters hoping that the export process would gain more momentum in the current month.
Main markets for kinnow export are UAE, Iran, Russia, Ukraine, Saudi Arabia and other Gulf States. The horticulture export board report said export of kinnow was slow in January mainly because of logistical reason. Major shipping lines avoid taking consignments to Iran, a main market for kinnow due to the US pressure.
No major shipping lines had spared containers for Russia, which also resulted into low export of kinnow to Moscow. But after some availability of shipping lines, it is hoped that export of kinnow would get momentum in the months ahead.
This year the total export kinnow export target of 200,000 tonnes would be crossed easily on the back of bumper crop. The bumper size has kept the price to a manageable level and imposed colour and taste.
An international expert hired by horticulture board recommended development of private agri-sector support services through an effective service delivery network of contractors, market agents, exporters and financial sector.
In addition to that, it should strengthen trade support network through the State Bank of Pakistan and enhance access to finance besides promoting corporate farming and eliminating supply chain gaps in the kinnow industry.
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