Mango exporters have warned of legal action against the ministry of commerce (MoC) and the Trade Development Authority of Pakistan (TDAP) if they fail to resume subsidy on airfreight of the mango exports and pay around Rs 150 million dues to the exporters.
"We would go to the Supreme Court or any other court if the government fails to restore 25 percent subsidy on airfreight of the mango exports to the top 20 countries other than Europe", Mateen Siddiqui, ex-chairman, All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association, told Business Recorder on Thursday.
A TDAP official, however, ruled out the existence of any such outstanding dues of the mango exporters, saying to announce the subsidy was not the job of the Authority. "It is the commerce ministry that is a competent body to announce the subsidy on mango exports and not the Trade Development Authority", said the official.
He said the TDAP had moved the case to the commerce ministry and was waiting for the green signal from Islamabad. "The government had announced the subsidy to benefit the masses and traders alike but the move was not serving its purpose as some exporters were misusing it", said the official without naming the involved exporters.
"Some traders have been exporting mangoes only to get subsidy but by doing so they also create problems like price-hike in the local market", he added. The official said the benefit was not trickling down to the people due to some unscrupulous mango traders.
The delay in announcing the subsidy, the official said the government wanted to ensure a transparent and legal use of the incentive, as it was the money of Pakistani people, which could not be allowed to exploit. When asked if the government was intending to pay dues, which according to exporters accounted for over Rs 150 million, he said: "We don't know if they (exporters) had spent the money after the withdrawal of subsidy."
Mateen, however, said mango exporters had held several rounds of negotiations so far with the Authority, but the issue was still unresolved. "We have been in talks with the officials of TDAP and a very responsible official has assured us of moving file to Islamabad with favourable remarks", said Mateen, adding: "We are waiting for a response from the center and would hold a meeting soon after we receive it."
In case of non-compliance by the commerce ministry the "exporters would take the shelter of law" either by going to the Federal Ombudsman or approach the Supreme Court or any other court of the country, he vowed.
Last year, the government in its Trade Policy 2006-07 had announced the subsidy on airfreight for fruit and vegetable exports to the top 20 countries by 25 percent from August 1, 2006 to July 31, 2007. In this concern it had also issued a public notice on July 26, 2006.
But on March 27, 2007, the government had withdrawn its subsidy on the mango export on the plea that the Ministry of Food, Agriculture and Livestock (Minfal) was already subsidising export of the king of fruits.
But Mateen said the government's "duplication" excuse was not valid, as Minfal's subsidy was only covering the mango exports to Europe but Islamabad withdrew subsidy on exports to all the top 20 countries.
"Since August 1, 2006, we have exported more mangoes to the countries other than Europe and paid more than Rs 150 million for airfreights, but have received no payment from the government in the name of subsidy," he claimed. He also said: "Even Minfal had stopped giving the subsidy on mango exports to Europe after October 15, 2006".
"Last year, we exported almost 60 to 65 percent of our total 125,000 tonnes mangoes but the government even included Dubai in the list of top 20 countries for which subsidy was withdrawn", he said. Mateen said the government is focusing more on setting up industries in the country but less concerned about devising strategies to upgrade the "marketing process" of mango in international market. To make Pak mangoes competitive in the international market the government would have to give more subsidies on their exports, he stressed.