Arrangements for 100 GenSets and chartered vessels through the private sector's involvement, including the international firms are under process to facilitate haulage of fresh produce from the production areas like kinno from Sargodha-Bhalwal to Karachi for export.
This was stated by Afaq Ahmad Tiwana, chairman, Pakistan Horticulture Development and Export Board (PHDEB) during a meeting with the fruit exporters held at PHDEB office.
The meeting reviewed the overall export of fresh horticulture produce and in particular kinno.
While appreciating the government initiatives and the role of PHDEB in facilitating the exporters, the meeting took serious note of the non-co-operative attitude of the shipping lines increasing unilaterally the sea freight to $3,000 per container for Jakarta and similarly, for other destinations.
Since negotiations with the importers were finalised prior to the start of the season, the increase in freight had adversely impacted them.
The exporters informed the meeting that they had to bear losses in order not to lose the markets.
The clause in the bill of Lading East shippers risk absolved the shipping lines of any damage to the cargo during transportation.
They called for a fair code of conduct for the shipping lines, saying the government should consider freight subsidy so that export of kinno substantially increased to absorb the augmented volumes due to bumper crop this year without causing gluts in the domestic market. The freight subsidy was allowed under the WTO regime as well, they added.
It was further sought that the government should relax duty on import of 17 KVA GenSet needed for the reefer container during haulage of kinno from the production area to Karachi port.
The cost of imported 17 KVA GenSet was Rs 700,000, which was high. There was hardly any other use of this GenSet in Pakistan at present except for reefer container and hence no misuse of the facility could be predicted.
Similarly, the import of refrigeration machinery for cold storage sand/or cool chain system, waxes for polishing for kinnow and other fruits and packaging should be allowed duty-free. Further, the government may also consider 50 percent relaxation in electricity charges for cold storages. These steps would attract private investment in the horticulture sector thereby easing the burden on government in the long run.