Recognizing Pakistan’s potential for date production and exports, TDAP organized its first ever Dates Show and Seminar in Gwadar on July 27. In the global $1.2 billion market of fresh and dried dates, Pakistan holds the fourth position in terms of exports. Unlike the story of most of Pakistan’s exports, date exports have risen over the last decade. However, there is potential to tap unexplored markets as well as move up the value addition chain.
Currently, India is the biggest importer of Pakistan’s dried dates, accounting for nearly 90 percent of Pakistan’s total date exports in 2016. However, Pakistan’s date imports only account for half of India’s total date imports. This leaves room for an increase in exports to India, especially since India levies 24 percent tariff on Pakistan’s imports on average whereas 30 percent tariff is levied on Pakistan’s competitors Iraq, Iran, UAE and Oman.
Another market that can be explored is the European Union, which is the biggest importer of dates globally. In 2016, Pakistan’s percentage share in EU’s $343 million date market was 2 percent. Under GSP Plus, Pakistan faces 0 tariffs on its date exports to EU.
Khairpur and Sukkur are the main date producing regions where monsoon season coincides with the harvesting season every year. Rain water is regarded as the major source of decay present on the palm trees or lying over a vast land for drying purposes. As a result, producers sometimes lose as much as half their produce.
By contrast, dates are imported every year ($6 million in 2016) to meet local demand. Not only because imported dates are processed and hence considered tastier, but also of losses due to the perishable nature of dates. By one estimate, only 5 percent of domestic dates are consumed locally.
Five year’s average date production as per Pakistan’s Ministry of National Food Security and Research was 557,000 tons in 2012. The average of five year exports of Pakistan’s dates was 150,000 tons in 2016 as per ITC, with average price being $629 per ton approximately. This implies potential increase of $256 million in export earnings if all dates produced locally were exported rather than perished due to lack of storage and processing facilities.
The majority of date exports of Pakistan are in the form of dried dates whose price is nearly half the price of the higher valued fresh dates. The main reason for lower volume of fresh date exports is lack of processing facilities, with proper cleaning, grading and packing facilities
Date processing plants can allow Pakistan to export the higher valued fresh dates in the international market where local brands like Dhakki dates are already established. As per a report by USAID in 2014, setting up of a date processing plant with estimated annual production of 3,000 tons would cost a modest outlay of Rs160 million.
Israel and Tunisia are some of the top global exporters of fresh dates. The average price per ton of their dates is $2,114 and $2053 respectively, indicating a large price differential between Pakistan’s date exports and their date exports. A 2009 report by Pakistan Horticulture Development & Export Board suggested that this is because of lack of product quality and poor post-harvest management. Investments in advanced processing and refining would allow Pakistan to produce high value brand of dates and by-products, and thus increase export earnings substantially.
France is not a date producing country. Instead it imports dates, processes them and exports them as a premium product at higher prices. In 2016, price on average of a ton of France’s date exports was $2,900.
Dates are among Pakistan’s abundant resources that have potential to increase export earnings if invested in. It is a pity that a product with so much potential is being allowed to be perished in large quantities every year. It is time that investments in date processing are made to allow Pakistan to benefit from its exports.