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Pakistan: Increased mango freight rates make export difficult

Both local an domestic airlines have increased their freight rates, but around 100%, for the export of mangoes. This means exporters in Pakistan are likely to struggle against other regions.

A spokesperson of the Welfare Association Wholesale Vegetable Market Shaikh Waqar Ahmed said that almost all airlines including the national flag carrier increased their cargo charges while mango prices did not increase at anything like that rate, reducing profit of exporters. "Freight rates for Middle East increased to Rs70 per kg ($0.75 cents US) from Rs35 per kg last year," he said.

The export season for mango started May 25th to the Middle East, Europe and South East Asia.

This is just one more challenge to the industry this year. Access to Iran has been cut off as a result of sanctions and Indonesia, another promising market, has increased import tariffs to 45%. Pakistan is facing stiffening competition from India in Asian markets and Australia and Mexico in Europe.

There are suggestions that it is easier for Indian exporters now the airlines have increased their rates.
"Airlines were charging lower freight in India as compared with Pakistan," said Haji Shahjahan, President Welfare Association Wholesale Vegetable Market.

Source: thenews.com.pk

Publication date: 6/1/2012


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