Pakistan losing Middle East mango pulp market

Political turmoil in ME and price cut by India sideline exporters.

KARACHI:

Political unrest in the Middle East and drastic reduction in prices by India have sidelined Pakistan from the international mango pulp market, industry sources say.

Value addition in the form of fruit pulp is still in its initial stages in Pakistan. Twenty-three thousand tons of mango pulp is produced every year, of which three to four thousand tons are exported.

Industry sources said Pakistan exported 800 tons of mango pulp to Libya annually but civil war in that country has disrupted supplies. Thirteen containers sent to Libya four months ago have still not been cleared, causing a loss of $200,000 to a Pakistani company. No new orders are coming in.

India controls 70 per cent of the total international mango pulp market of 350,000 tons. In addition to the problem created by the Middle East situation, India’s reduction of prices by $200 per ton has also sidelined Pakistan.

The pulp was exported at $800 to $850 per ton last year. However, this year Pakistani exporters are facing difficulties in competing with India because of better yield and facilities provided by the Indian government to its exporters.

All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association former chairman Waheed Ahmed said Pakistan had practically been out of the Middle East market because of the price cut by India.

He said India was capturing the Pakistan market, adding Indian export price was even less than the cost of production in Pakistan.

Published in The Express Tribune, June 17^th, 2011.