Pakistan International Airline''s decision to increase charges would badly impede exports of horti products, particularly vegetable exports. It may face a severe financial impact, according to All Pakistan Vegetable and Fruit Exporters Association.
The unjustifiable increase in its tariff has prompted other foreign airlines, ie Gulf Air, Etihad Airways, Saudi Arabian Airlines and Emirates airline to increase their airfreight charges, the Association said. Exporters said that the increase would have a devastating financial impact on the growers and farmers besides depriving the country of foreign exchange earnings.
The latest upward revision in airfreight charges, as claimed by vegetable exporters, is the third consecutive increase during the last three years. After the increase in tariff, exporters would pay Rs 122 for each kilogram on exported item as against the previous year''s tariff of Rs 99 per kg, while in 2007 the tariff was Rs 77.
PIA has increased its air tariff by Rs 50 on each kg of the vegetable exported during the last three years, hampering smooth export. Dr Babar Ehsan Bajwa, writing in Hortimag, a newsletter of Pakistan Agriculture Development & Export Company (PHDEC), estimates that Pakistan annually produces 16 million tons of fresh produce (2007-08), fruits 46 percent and vegetable 54 percent. Its market value at current factor cost is estimated at around $2 billion.
The annual export of fresh produce is estimated at around half a million tons, which earns $237 million. Fresh fruits and vegetables export is a growing industry and pace of both production and exports could be much accelerated. In the Medium-Term Development Framework 2005-10 (MTDF), production of fruits and vegetables has been projected at about 18 million tons by 2009-10 and exports at $238 million.
According to Dr Bajwa, the major challenge being faced by the fresh fruit export industry is the increasing issues of international compliance mainly focused on food safety, Sanitary and Phyto-Sanitary measures, traceability, residues of different agrochemicals, lack of good agricultural practices, reduction of post-harvest diseases and pests, quarantine treatment, and issues pertaining to safety of food packaging materials.
Despite handicaps, fruit and vegetable export during the first quarter of current financial year showed an increase of 11.24 percent and 45 percent respectively. About 121,254 tons of fruit worth $44.327 million was exported during the first three months of current year as against the export of 94,583 tons of fruit costing $39,848 million during the same period of last year.
During July-September 2009, about 43,983 tons vegetable with a total cost of $10.842 million was sent abroad as compared to 24,219 tons worth $7.437 million last year, showing an increase of 45 percent, according to the data compiled by Federal Bureau of Statistics.
However, the export of leguminous vegetable (pulses) decreased by 96.08 percent during July-September 2009-10 as on 11 million tons of the commodity worth $0.12 million was exported. Pakistan earned $7.529 million by exporting spices as export of the commodity was increased by 2.80 percent during the period under consideration.
About 3,250 tons of the commodity was exported in the first three months of current financial year as against 2,976 tons last year. Meat and meat preparations export from the country also witnessed an increase of 37.85 percent in July-September 2009-10.
During the first quarter of 2009-10 about 9,651 tons of meat and meat preparations were exported as compared to 5,626 tons of the same period in 2008. By exporting meat and meat preparations, $24.363 million was added to the foreign exchange reserves during the period under review against $17.674 million during the same period last year.