Chairman, All Pakistan Fruit & Vegetable Exporters, Importers and Merchants Association
The Trade between Russia & Pakistan has been registering substantial growth in the past few decades particularly after imposition of ban on import of Fruit & Vegetable by the Russia from European Union & U.S.A. The Russian market offers tremendous export potential of Fruit & Vegetable to Pakistan and would continue to dominate as a promising country for Pakistani Kinnow & Potato! Recently a 20 members’ Agro Food trade delegation of Trade Development Authority which visited Russia had leading exporters from the PFVA as well which held meetings with the food and agricultural products importers of Russia which was in line with the keen desire of the Govt. of Pakistan to enhance export of Fruit & Vegetable to this huge market. The delegates of PFVA also held meetings with Federal Customs Service, Federal Service for Sanitary and Phyto-sanitary Surveillance, Ministry of Agriculture and Certification Group of the Russian Federation.
The PFVA had been and is still playing a vital role to exploit tremendous potential of the Russia market by further improving quality & presentation of the agri-produce, the only winning factor to play a dominating role in this market. During 2015, Pakistan exported 104303 M/ tons of Kinnow & 40490 M/ tons of Potato which is a clear reflection of upward export trend to the Russian market. The firm focus of PFVA on Research & Development (R &D) has started paying dividend in the form of continuous quality improvement of Fruits & Vegetables exported to Russia to keep firm grip on this “Quality Conscious” market.
Russia is the second largest export market of Kinnow, however if the issue of Duty Valuation by the Russian Govt. is expeditiously resolved, it would assist Pakistan to further multiply volume of export. The C&F price of Kinnow is USD 650 – 700 per metric ton, however Valuation by the Russian Customs is USD 900 per Metric Ton during the period December – January & USD 1050 per Metric Ton from February onward which is quite unrealistic. On top of that the Russian importers of Pakistani Kinnow are required to pay duty @ 8.75 % & VAT @ 18 % on their export consignment to Russia which is also far from the realistic valuation, since cost of Pakistani Agri- produce is not expensive compared to other countries exporting Kinnow to Russia. Once the issue of valuation is resolved on realistic grounds, the export volume of Kinnow to Russia can multiply many folds !
The PFVA with it’s visionary leadership and R&D conscious policy forecasts to increase volume of export to Russia if the valuation issue can be taken up with the Russian Govt. to bring it closed to realistic value.