Cargo fare increase: Kinnows become pricier to export

Export target has already fallen by 10% to 175,000 tons or 180,000 tons from the set target of 200,000 tons.

ISLAMABAD:

Kinnow export, right from the start of season, faces difficulties in reaching international markets. The General Rate Increase (GRI) imposed by shipping lines from January 1, 2013, onwards could affect outgoing kinnow export, says Harvest Tradings CEO Ahmad Jawad.

He said that with the addition of the GRI, the cost of export has increased by around Rs150,000 on each shipment. As a result, the kinnow’s export price will not be competitive with other countries’ oranges.

Jawad further said that the kinnow is already an expensive fruit in the international market due to high input costs; with the addition of these miscellaneous expenses, buyers may cancel orders for the next two months’ orders due to the price factor.

The unexpected strike by goods transporters across the country in December also badly disturbed all plans and export processes. The export target for the fruit has already fallen by 10% to 175,000 tons or 180,000 tons from the set target of 200,000 tons.

Published in The Express Tribune, January 4^th, 2013.

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