Leaders of the All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) have appealed to Prime Minister Shehbaz Sharif to accord top priority to resolving the issues being faced by the horticulture sector, especially kinnow exporters.
In a letter written to the PM, the association asked him to take necessary action for future growth of the sector, which possessed tremendous export potential.
“Exports of the sector may drop significantly if the suggestions given by exporters are not taken seriously and prompt action is not taken,” it said.
The horticulture sector has made good progress by enhancing exports and it expects to multiply export volumes provided its reservations about the tax regime announced in the recent budget were addressed and sufficient funds were allocated for research and development (R&D) work.
The association pointed out that nothing had been earmarked for R&D in the current budget, which was the need of the hour, since it had already started casting its shadow over the export of kinnow, which dropped from $220 million to just $110 million.
“Unless sufficient funds are allocated, including but not limited to the development of new varieties (like seedless kinnow that is in great demand in international markets), quality improvement, enhancement in per-acre yield and others, the possibility of collapse of the kinnow industry cannot be ruled out,” it said.
Since Pakistan has exemplary relationship with China, which has made outstanding progress in agricultural development through extensive R&D, the government can take services of Chinese agricultural experts for improving the local horticulture sector.
Sharing the problems, PFVA Patron-in-Chief Waheed Ahmed remarked, “How difficult it is for our exporters to purchase goods and make payments. Supply chain (fruits and vegetables) is highly disorganised. Exporters buy fruits and vegetables from third parties but they don’t even have a bank account.”
Similarly, he said, growers, mostly those having landholdings up to 25 acres, have no bank accounts. Thus, exporters are compelled to pay them (third parties/growers) through cash cheques. Similarly, thousands of “seasonal” labourers, hired on a contractual basis for packing export consignments of kinnow, mango, onion and potato, are paid wages in cash.
In this situation, “when exporters submit their income tax return, it is impossible for them to provide money trail because of the reasons stated above”, he said. “The solution is that the proposal about ‘advance tax’ should be withdrawn and the fixed tax regime should continue.”
Speaking about the impact of climate change, Waheed Ahmed said the fast changing weather posed a big challenge to the horticulture sector as it had already impacted the production of kinnow and mango. Thus, “food security will become a national issue, if serious efforts are not made right now”. As a result, he stressed, farmers would not be able to get fair prices for their produce and they may lose interest in growing fruits and vegetables, leading to food insecurity. “It is, therefore, imperative to have some provision (funds) in the budget.”
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