The All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association reports a decline in export volumes, citing higher freight rates and regional trade restrictions. According to the association, international freight charges for a 24 ton consignment or 40-foot container have increased from US$3,000 to US$3,500 last season to US$7,000 to US$8,000. Combined with the closure of the Afghan border, exporters indicate that meeting export targets has become more difficult, and financial pressure has increased.
The closure of the Afghanistan border has affected established transit routes. Shipments previously routed through Afghanistan at an average freight cost of around US$3,000 are now diverted through Iran, raising costs to about US$8,000. Transit times have extended from seven to eight days to 15 to 20 days. Exporters indicate that longer delivery times are affecting perishable products such as kinnows and potatoes.
The association has requested government support of US$30 per ton under the Drawback of Local Taxes and Levies scheme to offset higher logistics costs.
PFVA also raised concerns about production volumes. Potato output has reached 12 million tons, approximately two million tons higher than last year. The association stated that limited export corridors and trade restrictions may constrain the absorption of surplus volumes in international markets.
Most potato supplies originate from the Okara district in Punjab. Export destinations include Sri Lanka, the United Arab Emirates, Malaysia, Qatar, Oman, and Kazakhstan. The association has urged authorities to address quarantine-related issues in existing markets and to explore access to China, Indonesia, and Europe in order to diversify export destinations.
In addition, PFVA has called for measures to stabilise border conditions in order to restore trade routes through Afghanistan and reduce transit costs for exporters.
Source: Profit
