VHT plants installation can boost Pak mango export

By Technology Times at July 10, 2012 | 1:01 am

STAFF REPORT IBD: Pakistan is missing Japan’s huge market for mangoes in the absence of Vapor Heat Treatment (VHT) facilities to meet the sanitary and phyto-sanitary conditions which are a pre-requisite for mango exports to that country. Pakistan could easily export mangoes worth $4-5 million annually if VHT plants are installed to meet the laid down requirements, experts said.

The Japanese government has already approved the quality of Pakistani mangoes which are superior in taste and have the potential of giving a tough competition to Indian mangoes which are already there in that market.

According to horticulture exporters, Pakistan immediately needs at least two huge VHT plants of a minimum capacity of 50 tons each – one at Karachi and the other at Lahore. Although it is the responsibility of the Pakistan Horticulture Development and Export Company (PHDEC) to provide these facilities to enhance exports, but instead, Pakistan Trade Development Authority of Pakistan (TDAP) is taking more interest in having VHT plants installed as soon as possible.

“This year, the government may import VHT plants from Japan to start commercial shipments of mango from 2013,” said Director Business Development, Harvest Trading, Ali Akhlaq Mughal.

He said that Japan has remained one of the major bilateral development partners of Pakistan since 1954, extending assistance in multifaceted sectors of development.

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Pakistan to import VHT plant from Japan shortly

Aiming to tap the very lucrative international markets for fruits, Pakistan, for the first time, is going to import Vapour Heat Treatment (VHT) plant from Japan. With the investment of at least Rs 236 million, the country has almost finalised the procurement process of the plant, which was needed to process fruit especially mango for entering Japanese and other international markets, Business Recorder learnt.

According to sources, all parts and other allied machines for the establishment of VHT facility was expected to reach the country within next 120 days will be installed at proposed Agri Processing Zone land, situated near Karachi city along Super High Way. The new plant will process at least 15,000 kilogram or 15 tones mango daily. Vapour Heat Treatment System uses hot saturated water vapour to heat the fruit slowly, treating possible fruit flies.

The plant, according to sources, was being procured through Trade Development Authority (TDAP) of Pakistan and a representative of the private firm, which has won the bid issued by TDAP was currently in Japan. The same VHT plant, with latest technology, was being used in other countries like Thailand, Philippine and others to process fresh fruits. Though the plant can be used for multipurpose, but it was presently being imported for processing the highly valued mango. The plant, which will facilitate export of fruits and vegetables, especially Mangoes, to Japan and other foreign markets was intended to meet the phyto-sanitary requirements of the importing countries.

According to TDAP’s issued bid in February 2012, the successful bidder would be responsible for commissioning of complete plant; responsible for operation and maintenance for six months; training of local staff; supply of spare parts and ensure the warranty/guarantee for the plant.

The bidders were asked to provide lowest quote for operation and maintenance using the period of 15 years, as the running cost for daily processing of 15 tones of mangoes for a period of 4 months season (120 days), having the net present value using discount rate of 12 percent. The total estimated cost of the plant was Rs 236,170,230.46. It is worth mentioning here that in the absence of required VHT plant, Pakistani mango was not being exported to Japan despite lifting a 16-year-old ban on the import of fruit from Pakistan.

Last year, the government had introduced Mango in Japanese market on experimental basis and limited quantity of mangoes had sent to Japan for promotional purposes as test shipment soon after the foreign government allowed it after processing through a smaller VHT plant provided by Tokyo in 1999.

Japanese ministry of Food and Agriculture had given the permission of mango imports from Pakistan with an attached condition -Vapour Heat Treatment of mangoes. Islamabad had made the older plant operational last year in order to introduce the fruit in foreign markets. However, the bigger and latest one was needed to start the trade on commercial basis. Though the exports of mango, which is called here the king of fruit was expected to be started during ongoing season but the delayed procurement process of the plant kept the foreign market away for another one year/season. However, after the fresh development, the country is expected to be able to export mango to Tokyo a lucrative and potential market.

Copyright Business Recorder, 2012

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Mango: US, Japanese markets to remain out of reach

Production is likely to stand around 1.2 million tons of mangoes against the production of 1.7 million tons recorded during the previous season.

Pakistan, which is going to start exporting mangoes by May 25, is likely to remain shut out of the lucrative US and Japanese markets.

Despite initiatives taken by the All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) and the Trade Development Authority of Pakistan (TDAP) to introduce Pakistani mangoes in US and Japanese markets, export of the fruit to these countries remain unlikely this year because of the lack of a well-equipped fruit treatment facility in the country.

The country is also estimated to be facing a 30% loss in production due to climatic changes in the country. Production is likely to stand around 1.2 million tons of mangoes against the production of 1.7 million tons recorded during the previous season.

Last year, 0.134 million tons of mango were exported, generating revenues of at least $38 million, according to PFVA co-Chairman Waheed Ahmed. This year, the target was fixed at 0.15 million tons, with estimated revenues of $50 million.

The reduction in production, he said, was mainly because of climatic changes which affected mango trees in Hyderabad, Tando Allahyar, Mirpurkhas and Mityari in Sindh; and Multan, Rahim Yar Khan, Shuja Abad, Muzaffar Garh and Khanewal in Punjab.

Japan last year approved the mangoes tested through a small VHT facility in the country; but it is not viable to use the same facility for commercial purposes because of its limited functionality and capacity. Thus, exports to Tokyo remain a distant dream, Ahmed said.

The absence of a quarantine facility in the country is also not favourable to exporters; as no exporter wishes to risk sending an entire consignment to the US before quality approval, while also bearing the huge freight cost, he said.

A proposal for the setting up of a commercial processing plant and a common facility centre has already been sent to the Ministry of Commerce, but the ministry has yet to take a step in this regard.

Beside the two important foreign markets, the country is also losing the market in Iran because of sanctions imposed by the US, as commercial banks are reluctant to be involved in financial transactions in this regard. Iran is regarded as a valuable market in terms of prompt payment for imported fruits; existing exports or smuggling will not benefit the country in terms of revenue, Waheed said.

He also revealed that a delegation from Australia was due to visit Pakistan this month to inspect mango farms and processing units in the country. The opening of Australian markets for the Pakistani mango – expected during this year – will be an important development for the country’s fruit exporters.

Published in The Express Tribune, May 10th, 2012.

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Indian tomatoes flooding Pakistan

Lured by high profits, Indian traders are flooding the Pakistan market with tomatoes, affecting domestic supplies and pushing up prices back home. Truck loads of tomatoes sourced from Delhi and Nashik are entering Pakistan through Attari-Wagah border in Amritsar daily, traders said.

“As many as 80-90 trucks of tomatoes (each carrying about 16 tonnes) are crossing Attari-Wagah border every day,” Rajdeep Singh Uppal, vice-president, Amritsar Export Association said. This has been happening for over two weeks, he said, adding that the trend is expected to continue for a month. Rajendra Sharma, a member of Delhi agriculture marketing board, said supply of tomatoes to Pakistan is one of the reasons for continued high retail prices of the vegetable in Delhi at Rs 20-25 a kg.

Rajendra Chug, general secretary of Delhi’s Azadpur market (Asia’s biggest vegetables & fruits market) said that on average 10-12 trucks laden with tomatoes are heading for Pakistan everyday.

Uppal and C ug said rush of tomatoes to Pakistan is triggered by relatively high prices there because of damage to the crop due to floods in the key producing Sindh region. Chug said the Indian tomato is selling between Rs 25-30(Indian currency) a kg in Pakistan. The price of the same vegetable inDelhi stood from Rs 8-15 per kg in wholesale, traders in the Azadpurmarket said. Uppal said Indian tomato is selling for around USD 350-400(Rs 17,850-Rs 20,400) per tonne in Pakistan. Ajit Shah, president ofMumbai based agriculture export association said around 100-125 tonnesof tomatoes from Nashik is finding its way to Pakistan by road throughWagah.

R P Gupta, director, NHRDF (established by agri- cooperative Nafed for research and improving productivity of agri crops) said tomato production reaches a high level in the Nashik district of Maharashtra between September and October. It is also the only region during the period to produce the staple vegetable. Key tomatoes producing regions like Nashik, Pune and Ahmadnagar provide the supplies to the entire northern region including Delhi during the period, Gupta said. The mild climate in the region during this period is best suited for cultivation of tomatoes, the NHRDF (National Horticulture Research and Development Foundation) director said. Nearly 2,000 tonnes of tomatoes are arriving in Pimpalgaon market yard daily, Gupta said.

Source: timesofindia.indiatimes.com

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Pakistan may Start importing Indian Tractors next year

Unlike a lot of industries, the local tractor industry is not war of opening of trade with India. In fact, it is looking forward to it. Universal Traders are in talks with an Indian counterpart to start importing tractors to Pakistan once the negative list is phased out and trade with India opens up next year.

Escorts Limited and Universal Tractors of Pakistan will collaborate next year to import 7,500 tractors. It is interesting that the two companies have been working together since 2003. However because of the ban on imports from India, these tractors were being imported from sister concerns of the Indian company from Norway and the US, at much higher cost.

The two companies are now hopeful that with the removal of the negative list tractors will be legally imported from India which will also help in combating smuggling.

The tractors will not be imported as a CKD and assembled in Pakistan. The assembly plant was commissioned under the tenure of former prime minister Shaukat Aziz and is already at an advanced stage of completion. Rajiv Kumar, Head of Exports at Escorts Limited spoke to The Express Tribune said that his company is already exporting to over 60 countries. Kumar also said that the company was initially set up in partnership with Ford in the 1960s. Ford left India in 1996 and since then the company is a full-fledged Indian enterprise. The company started off with an annual production of 20,000 tractors which has now gone up to 80,000. Basically this means that an Escorts tractor is manufactured every four minutes. The total Indian market for tractors is 650,000 a year.

Kumar also said that where Indian tractors would prove beneficial in overcoming the shortfall in the demand for tractors in Pakistan, there was no reason why Pakistani tractors could not make a foothold in the vast Indian market. He also spoke about the possibility of assembling in Pakistan for further onward exports.

Managing Director of Universal Tractors Pakistan, Muhammad Iqbal told The Express Tribune that they had imported 100 Indian tractors since 2003 through their European and American enterprises. He further said that once the negative list was phased out they planned on importing 28,500 tractors over the next three years. Iqbal also said that with the shortfall in demand of 20,000 tractors annually in Pakistan, imports from India would benefit agriculture. He said that Indian tractors were not more expensive than local tractors and would become even cheaper after local assembly.

Iqbal said that at present Pakistan needed 650,000 tractors immediately. He also said that the transport of tractors would be cheaper because of easy access from Wagah border.

Published in The Express Tribune, December 15th, 2012.

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