News Analysis |
Export of Kinnow (citrus fruit) from Pakistan to Indonesia has surged by a staggering 150 percent to $48 million in the current fiscal year from $20 million during the fiscal year 2016-17.
A commerce ministry official told a publication that the increase in Kinnow exports is attributed to the re-negotiation of the Preferential Trade Agreement (PTA) with Indonesia.
The decision regarding granting special permission for Pakistani Kinnow was taken during a 3rd review meeting of Indonesia & Pakistan’s Preferential Trade Agreement, which was held in August 2017 in Jakarta. Based on the decision, concerned authorities in Indonesia have already completed the formalities and Indonesian importers are given the go ahead for booking their orders with Pakistani exporters.
The Embassy of Pakistan, Jakarta and TDAP had arranged for the participation of fruit exports from Pakistan, in food related exhibitions in Indonesia.
In order to ensure that maximum number of Pakistani exporters may benefit from this opportunity, the Embassy of Pakistan, Jakarta and the Trade Development Authority of Pakistan (TDAP) had arranged a delegation comprising of importers of fresh fruits from Indonesia that travelled to Karachi for participation in EXPO Pakistan, 2017, which was scheduled from 9th – 12th November  2017. Furthermore the Embassy of Pakistan, Jakarta and TDAP had arranged for the participation of fruit exports from Pakistan, in food related exhibitions in Indonesia.
He informed that during re-negotiations, Indonesian authorities agreed to provide concessions on 20 tariff lines, such as on major exports, including rice, textile, ethanol, Citrus (Kinnow) and mangoes.
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He also said that the concession on the 20 tariff lines was a major success for Pakistan. Besides increase in the citrus export, the quantity of mangoes exported to Indonesia was likely to rise to 10 million tons in a year, he added. He said that before the restructuring of the agreement, Indonesia had granted only two months to Pakistan for export of citrus and mangoes but now the two fruits could be exported for the whole year and any time-bar was abolished.
A commerce ministry official told a publication that the increase in Kinnow exports is attributed to the re-negotiation of the Preferential Trade Agreement (PTA) with Indonesia.
The official said Pakistan wanted to initiate talks with the South East Asian nations for signing the Preferential Trade agreements to enhance its multilateral trade and competitiveness. Countries, including Indonesia, Vietnam, Philippines and Japan in the Pacific region, were also in the list for PTA’s, he added.
In the last fiscal year, Director Citrus Research Institute Muhammad Nawaz Maken had informed that over 1.031 million tons of Kinnow had been exported from the region out of the total 2.077 million tons export from the whole country.
Briefing the commissioner Nadeem Mehboob during his visit to the CRI, the director had said that over 123,705 tons of Kinnows was produced this year out of 94,623 acres of kinnow orchards in the region. He said that Afghanistan and Indonesia were the main markets of Pakistani kinnow.
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He also said that seedless and disease free kinnow introduced by the CRI would start production soon. He added that over 5000 plants would be provided to farmers in the first phase. The commissioner expressed satisfaction over performance of the CRI and stressed to motivate farmers for adopting modern ways of cultivation to enhance per acre production.
Responding to a question, he said that Pakistan and Indonesia had agreed on a concession for 20 different items during bilateral talks under the Preferential Trade Agreement. The two countries’ current annual trade volume was $170 million, which was expected to increase to $300 million after renegotiation on the PTA, he added.
In the last fiscal year, Director Citrus Research Institute Muhammad Nawaz Maken had informed that over 1.031 million tons of Kinnow had been exported from the region out of the total 2.077 million tons export from the whole country.
As a result of prolonged discussions at the highest level and in an effort to increase Pakistan’s exports, Indonesia had agreed to allow the export of Pakistani Kinnow starting from December till April. Previously it was allowed from only January till April. Later, the time code was removed and exports were permitted year round.
Experts are of the opinion that permission to export Kinnow would play well for Pakistani exporters as competitor countries like China are not allowed to export their citrus during December. It is important to the note that citrus consumption in Indonesia is usually at its peak due to New Year’s celebrations.
This access, an analyst cited in a publication, for Pakistani exporters should provide a good / timely boost for our exports to Indonesia, which were around $156 million in 2016.
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However, during last season, Kinnow exports to Indonesia grew exponentially. Kinnow exports more than doubled within four months of 2017 as they grew from the entire years exports of $20 million in 2016 to $48 million. This number is likely to grow further, during current season, considering the fact that our exporters are given preference by the Indonesian authorities.