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The Russian Federation and Iran are emerging leading markets for Pakistan's kinnow, while a sizeable quantity also passes on to CIS countries through Afghanistan, according to Agribusiness Support Fund (ASF) annual report 2006-07, available here on Tuesday.
To further give a flip to the exports of citrus fruits, mangoes and other products to Europe and other countries on fast track basis, the ASF has successfully launched 'EurepGap' certification project, which is destined to bring innumerable gains to Pakistan.
ASF has now started its core business of providing matching grants for agribusiness enterprises. The specific objectives of ASF are: to enable agribusiness enterprises to effectively utilise Business Development Services (BDS) to enhance productivity, product and market diversity and penetration, and profitability, and to enhance BDS providers' capacity to reach agribusiness enterprises through the delivery of more varied and effective services.
Citrus fruits are among the main fruits produced and exported from Pakistan. Its production has increased overtime. Current production is estimated fairly above two million tons per annum, mainly contributed by kinnow (Citrus reticulate), followed by sweet orange (Citrus sinesis).
Production of kinnow mandarin is concentrated in Punjab where Sargodha district alone contributes as much as 60 percent of total kinnow production in the country. The annual export of citrus fruits from Pakistan has steadily increased. Last year, it reached the record level of 0.2 million tons. UAE, Saudi Arabia, Indonesia, Philippines, Afghanistan and Sri Lanka are among traditional prominent markets.
However, per unit price of kinnow in international market is the lowest because exports are mainly directed towards low price end markets. The problem is compounded by food safety concerns leading to stringent quarantine measures, traceability and demand for 'EurepGap' certification. This is a private certification system, driven by 22 large-scale retail chains in Europe that form the core members of the Euro-Retailer Produce Association (Eurep).
The 'Eurep Good Agricultural Practices' (EurepGap) scheme brings those 22 retailers together with large-scale fresh produce suppliers and producers. The international consumers/buyers are now beginning to differentiate between the fruit that is produced at farms which make greater use of pesticides and fail to follow established safety protocols. The day is not far when the EurepGap certification would be compulsory for exports of fruits and vegetables to European region.
ASF recognises the importance of acquisition of EurepGap certification by the country's fruit and vegetable exporters so that not only a better export price can be realised but also the unattended European export markets can be explored, which, at present can not be accessed by Pakistani exporters due to international quality standard requirements.
The ASF has launched a major project for a cluster of 13 leading citrus exporters (also termed as Produce Marketing Organisations - PMOs) in Bhalwal, district Sargodha, for acquisition of EurepGap certification by implementation of Good Agricultural Practices (GAPs) in the orchards of PMO member kinnow growers.
Total area under cultivation registered by these 13 PMOs covers approximately 0.13 million tons annual kinnow production which accounts for more than 50 percent of current kinnow exports. ASF has approved grant funding of Rs 19.5 million for this three-year project, costing Rs 39 million.
The project is expected to have a significant impact on Pakistan's citrus fruits exports, which is expected to increase both in terms of volume and unit price, thereby increasing foreign exchange of Pakistan. As a result, the contribution of agriculture sector towards GDP would also increase. It will also serve as a model project for other crops, particularly mangoes and dates. ASF plans to replicate the project for other crops as well.
After the successful launch of citrus EurepGap certification project, ASF has planned replication of similar model for mango growers in Pakistan. It has already launched projects in Multan and Tando Allahyar for three mango Produce Marketing Organisations (PMOs), including two start-up agribusiness enterprises, representing 19 exporters with a total registered area of 1354 acres under cultivation. ASF matching grants, totalling Rs 3.667 million, will provide support to PMOs in different areas. The PMO at Tando Allahyar will, under the same project, also acquire organic farming certification for orchard area of 700 acres.
Other processors, exporters and growers are showing interest in joining the certification schemes, which would generate similar benefits, as expected from citrus certification project.
Mango is the second major fruit crop in Pakistan. At present, it is grown on an area of 93,420 hectares area with production of 0.915700 million tons. The area under mango crop has increased, but the rise in production is comparatively slow. The main mango growing districts in Punjab are Multan, Bahawalpur, Muzzaffargarh and Rahim Yar Khan.
In Sindh, it is mainly grown in Mirpurkhas, Hyderabad and Thatta. In NWFP, it is grown in D I Khan, Peshawar and Mardan. The climate of Sindh gets warmers about one month earlier than Punjab, and enables the province to grow early varieties of mango. Subsequently, a new trend of growing late varieties in Punjab has received a wide popularity, which has extended the market period and added to the exportable surplus.
This delicious fruit is nutritionally superior, and a source of several vitamins and mineral. Pakistan produces 5.86 percent of world's mangoes, being the third largest producer. Its export is progressively increasing, resulting in substantial foreign exchange earnings. Other than the traditional export markets, such as the Middle East, mango exporters are now actively finding potential markets in European countries. The export of this fruit can be increased substantially if provided the right impetus and support, the ASF annual report said.

Copyright Business Recorder, 2007

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