pakistan

SOUTH-SOUTH TRADE PROMOTION PROGRAMME

PAKISTAN

ECONOMIC COOPERATION ORGANIZATION

Supply and Demand Survey on Food and Beverages

August 21, 2002

By

Ahmad AftabConsultant

AFTAB ASSOCIATESLahore, Pakistan

Supply and Demand Survey on Food and Beverages – Pakistan

The “South-South Trade Promotion Programme” is executed by the International Trade Centre UNCTAD/WTO (ITC) and is financed by the Global Trust Fund. One of the objectives of the programme is the generation of new trade flows, and other trade-related business arrangements, among developing countries. The survey described in this document was written in pursuance of this objective.

The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the International Trade Centre unctad/wto (ITC) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

While every effort has been made to verify the information contained in this document, ITC cannot accept any responsibility for any errors that it may contain.

This report has not been formally edited by the International Trade Centre UNCTAD/WTO (ITC).

3


Table of contents

SUPPLY SURVEY................................................................................................................................12

I. INTRODUCTION.............................................................................................................................12

A. Meat and edible meat offal...........................................................................................................121. Products covered under the survey.......................................................................................122. Significance of the product to the economy and foreign trade sector of the country...........13

B. Fish and crustaceans.....................................................................................................................131. The product...........................................................................................................................132. Significance of the product to the economy and foreign trade sector of the country...........14

C. Edible fruits, nuts, peel of citrus fruit...........................................................................................141. Products covered under the survey.......................................................................................142. Significance of the product to the economy and foreign trade sector of the country...........14

D. Cereals, milling products, malt, starches, etc...............................................................................151. Products covered under the survey.......................................................................................152. Significance of the product to the economy and foreign trade sector of the country...........15

E. Beverages, vinegar and spirits......................................................................................................151. Products covered under the survey.......................................................................................152. Significance of the product to the economy and foreign trade sector of the country...........16

II. SUMMARIES...................................................................................................................................17

A. Fisheries.......................................................................................................................................171. Significance of the product to the economy and foreign trade sector of the country...........172. Species found in Pakistan’s waters.......................................................................................173. Produce/catch distribution....................................................................................................174. Yield of fish & crustaceans..................................................................................................175. Catch distribution and valuation...........................................................................................186. Number of registered vessels................................................................................................187. Quality standards and specifications used by the industry...................................................188. Export of fish & crustaceans................................................................................................189. Share of major fish export items by value............................................................................1810. Export incentives provided by the government....................................................................1911. Export channels....................................................................................................................1912. Shipping 1913. Packaging 1914. Trade promotion government agencies/departments............................................................1915. Trade promotion activities....................................................................................................19

B. Edible fruits and nuts....................................................................................................................201. Significance of the product to the economy and foreign trade sector of the country...........202. The soil & climate................................................................................................................203. Demand & production..........................................................................................................204. Major varieties of dates grown in Pakistan..........................................................................205. Value added products of dates..............................................................................................206. Citrus varieties......................................................................................................................217. Production of fruits in Pakistan............................................................................................21

4


8. Important fruits of Pakistan..................................................................................................21

9. Production volume of dates..................................................................................................2110. Production volume of citrus.................................................................................................2211. Pakistan’s mango production................................................................................................2212. Irrigation system of Pakistan................................................................................................2213. Quality standards and specifications used by the industry...................................................2214. Quality control facilities.......................................................................................................2215. Fruit export value..................................................................................................................2316. Fruit export volume..............................................................................................................2317. Export of citrus.....................................................................................................................2318. Pakistan’s mango export.......................................................................................................2319. Export incentives provided by the government....................................................................2420. Marketing/export channels...................................................................................................2421. Pre-shipment inspection and quality control........................................................................2422. Trade promotion government agencies/departments............................................................2423. Trade promotion activities....................................................................................................2424. Significance of the product to the economy and foreign trade sector of the country...........2425. Production of cereals in Pakistan..........................................................................................2526. Raw material.........................................................................................................................2527. Availability of labor and trained professional......................................................................2528. Export value of cereals and cereal products.........................................................................2529. Major cereal items regarding export.....................................................................................2530. Production and export of malt..............................................................................................2631. Export potential of maize starches........................................................................................2632. Trade promotion of cereals...................................................................................................26

C. Preparations of vegetables, fruits and nuts...................................................................................261. Products covered under the survey.......................................................................................262. Significance of the product to the economy and foreign trade sector of the country...........263. Pickles...................................................................................................................................264. Production of fruit in Pakistan..............................................................................................275. Export value of fruit & vegetable preparations....................................................................276. Major export items................................................................................................................277. Export channels....................................................................................................................27

D. Beverages, spirits and vinegar......................................................................................................281. Products covered under the survey.......................................................................................282. Significance of the product to the economy and foreign trade sector of the country...........283. Carbonated beverages...........................................................................................................284. Non carbonated beverages....................................................................................................285. Alcoholic beverages.............................................................................................................286. Export value of beverages....................................................................................................297. Export markets......................................................................................................................29

E. Meat & edible meat offal.............................................................................................................291. Products covered under the survey.......................................................................................292. Significance of the product to the economy and foreign trade sector of the country...........303. Production volume of meat...................................................................................................304. Per capita consumption of meat in Pakistan.........................................................................305. Poultry sub-sector.................................................................................................................30

5


6. Feed and fodder situation.....................................................................................................31

7. Sanitary and phytosanitry (SPS) conditions at slaughter houses..........................................318. Disease management............................................................................................................319. Research and development...................................................................................................3110. Export of meat......................................................................................................................3111. Major export items................................................................................................................3212. Trade promotion government agencies/departments............................................................32

III.MAIN REPORTS..............................................................................................................................33

A. Fish & crustaceans.......................................................................................................................331. Introduction..........................................................................................................................332. Structure of the industry.......................................................................................................353. Capacity and production.......................................................................................................394. Quality standards..................................................................................................................435. Research and development...................................................................................................446. Domestic demand.................................................................................................................457. Exports..................................................................................................................................458. Export policies and incentives..............................................................................................5111. Export channels....................................................................................................................5212. Shipping 5313. Packaging 5314. Trade promotion...................................................................................................................5315. Recommendations for fish and crustaceans sector...............................................................55

B. Edible fruits and nuts....................................................................................................................561. Introduction..........................................................................................................................562. Structure of the industry.......................................................................................................573. Capacity and production.......................................................................................................634. Raw materials.......................................................................................................................695. Other production inputs........................................................................................................706. Quality standards..................................................................................................................717. Research and development...................................................................................................728. Domestic demand.................................................................................................................739. Exports..................................................................................................................................7310. Export policies and incentives..............................................................................................8311. Export channels....................................................................................................................8312. Shipping 8613. Trade promotion...................................................................................................................8814. Conclusions and recommendations......................................................................................89

C. Cereals, milled cereals, starch and malt.......................................................................................901. Introduction..........................................................................................................................902. Structure of the industry.......................................................................................................93

D. Capacity and production...............................................................................................................981. Area under cereal crops........................................................................................................982. Raw materials.....................................................................................................................1043. Other production inputs......................................................................................................1064. Quality standards................................................................................................................1075. Exports................................................................................................................................1106. Export policies and incentives............................................................................................117

6


7. Export channels..................................................................................................................118

8. Shipping..............................................................................................................................1199. Packaging............................................................................................................................12010. Trade promotion.................................................................................................................12011. Recommendations for cereals, & milling products, malt, starches, etc. sector..................121

E. Preparations of vegetables, fruit and nuts..................................................................................1221. Introduction........................................................................................................................1222. Structure of the industry.....................................................................................................1233. Capacity and production.....................................................................................................1254. Export channels..................................................................................................................128

F. Beverages, spirits and vinegar....................................................................................................1291. Introduction........................................................................................................................1292. Structure of the industry.....................................................................................................1313. Exports................................................................................................................................133

G. Meat & edible meat offal...........................................................................................................1361. Introduction........................................................................................................................1362. Structure of the industry.....................................................................................................1383. Capacity and production.....................................................................................................1384. Raw materials.....................................................................................................................1425. Other production inputs......................................................................................................1436. Quality standards................................................................................................................1437. Research and development.................................................................................................1458. Exports................................................................................................................................1469. Export policies and incentives............................................................................................14810. Export channels..................................................................................................................14811. Trade promotion.................................................................................................................14912. Conclusions and recommendations....................................................................................149

DEMAND SURVEY............................................................................................................................151

HS CHAPTER 04 – DAIRY PRODUCTS, BIRD’S EGGS, NATURAL HONEY............................151

I. INTRODUCTION...........................................................................................................................151

1. Products under the survey...................................................................................................1512. SITC and HS codes.............................................................................................................1513. Significance of the product to the economy and foreign trade sector of the country.........1524. Specific objectives of the survey........................................................................................1525. Methodology.......................................................................................................................152

II. SUMMARY OF CONCLUSIONS & RECOMMENDATIONS....................................................153

1. Products under the survey...................................................................................................1532. Production of raw milk.......................................................................................................1533. Production of processed milk and other dairy products.....................................................1534. Production of birds’ eggs....................................................................................................1535. Production of natural honey...............................................................................................1536. Import volume and growth rate – dairy products, birds’ eggs and natural honey..............1547. Export volume and growth rate – dairy products, birds’ eggs and natural honey:.............1548. Apparent consumption of dairy products, birds’ eggs and natural honey..........................154

7


9. Import duties and taxes.......................................................................................................154

10. Basis of assessment............................................................................................................15411. Import channels..................................................................................................................154

III.MAIN REPORT..............................................................................................................................155

1. Domestic milk producing industry.....................................................................................1552. Production volume of milk.................................................................................................1553. Projection of milk production.............................................................................................1564. Production of processed milk and other dairy products.....................................................1565. Production of birds’ eggs....................................................................................................1576. Production of natural honey...............................................................................................1577. Import value of dairy products, birds’ eggs and natural honey and the share of individual

items (two years):...............................................................................................................1578. Import volume....................................................................................................................1599. Import and import growth trend of dairy products, bird’s eggs and natural honey (five

years)..................................................................................................................................16010. Imports prices (based on the most recent import during 1999 and 2001)..........................16111. Sources of imports..............................................................................................................16212. Projection of imports for the next five years......................................................................16313. Projected growth rate is of 6% for the next 5 years............................................................16314. Export and export growth trend of dairy products, birds’ eggs and natural honey (five

years) 16315. Export projection of dairy products, birds’ eggs and natural honey..................................16416. Export growth rate is very encouraging at 47.48% for the industry for the next 5 years...16517. Apparent consumption of dairy products, birds’ eggs and natural honey..........................16518. Import duties.......................................................................................................................16619. Preferential 16720. Other charges on imports....................................................................................................16721. Basis of assessment............................................................................................................16722. Documentary requirements for imports..............................................................................16723. Import channels..................................................................................................................16824. Local marketing channels...................................................................................................16825. Useful addresses.................................................................................................................168

HS CHAPTER 07 – EDIBLE VEGETABLES AND CERTAIN ROOTS & TUBERS.....................170

I. INTRODUCTION...........................................................................................................................170

1. Products under the survey...................................................................................................1702. SITC and HS codes.............................................................................................................1703. Significance of the product to the economy and foreign trade sector of the country.........1714. Specific objectives of the survey........................................................................................1715. Methodology.......................................................................................................................172

II. SUMMARY OF CONCLUSIONS & RECOMMENDATIONS....................................................172

1. Products under the survey...................................................................................................1722. Significance of the product to the economy and foreign trade sector of the country.........1723. Production of edible vegetables and certain roots and tubers............................................1724. Import of edible vegetables and certain roots and tubers...................................................1725. Export of edible vegetables and certain roots and tubers...................................................173

8


6. Consumption of edible vegetables and certain roots and tubers........................................173

7. Import duties and other taxes..............................................................................................1738. Basis of assessment............................................................................................................1739. Import channels..................................................................................................................17310. Local marketing channels...................................................................................................17311. Recommendations..............................................................................................................173

III.MAIN REPORT..............................................................................................................................175

1. Area under vegetable crops................................................................................................1752. Production of vegetables....................................................................................................1753. Projected production...........................................................................................................1764. Import value........................................................................................................................1765. Share of individual items in total import value..................................................................1786. Projected import volume....................................................................................................1807. Import value and import growth trend of edible vegetables and certain roots and tubers. 1818. Imports prices (based on the most recent import during 1999 to 2001).............................1839. Sources of imports specifying aforementioned and other countries...................................18410. Export of vegetables and certain roots and tubers with share of individual items.............18611. Export volume and export growth trend of edible vegetables and certain roots and

tubers..................................................................................................................................18712. Exports showed a net increasing trend over the last 5 years..............................................18813. Major export markets vegetables........................................................................................18914. Growth rate of consumption...............................................................................................19015. Projected consumption for the next five years...................................................................190

IV. IMPORT POLICY AND PROCEDURES.........................................................................191

1. Import licenses for public sector/government undertakings...............................................1912. Import duties:......................................................................................................................1913. Exemptions.........................................................................................................................1934. Preferential..........................................................................................................................1935. Other charges on imports....................................................................................................1936. Basis of assessment............................................................................................................1937. Documentary requirements for imports..............................................................................1938. Import channels..................................................................................................................1949. Local marketing channels...................................................................................................19410. Mark-up in distribution.......................................................................................................19411. Useful addresses.................................................................................................................194

HS CHAPTER – 09 – COFFEE, TEA, MALT & SPICES..................................................................196

I. INTRODUCTION...........................................................................................................................196

1. Products under the survey...................................................................................................1962. SITC and HS codes.............................................................................................................1963. Significance of the product to the economy and foreign trade sector of the country (e.g.

expressed as share in total annual imports for the country.................................................1974. Specific objectives of the survey........................................................................................1975. Methodology.......................................................................................................................198

9


II. SUMMARY OF CONCLUSIONS & RECOMMENDATIONS:..................................................198

1. Products under the survey...................................................................................................1982. Significance of the products in national economy..............................................................1983. Production of coffee, tea, mate and spices.........................................................................1984. Import volume and growth rate..........................................................................................1995. Consumption volume and growth rate................................................................................1996. Import duties and taxes.......................................................................................................1997. Basis of assessment............................................................................................................1998. Import channels..................................................................................................................1999. Recommendations..............................................................................................................200

III.MAIN REPORT..............................................................................................................................201

1. Import value of coffee, tea, mate & spices and share of individual items..........................2012. Import Volume and share of individual items in imports (two years)................................2043. Import value and import growth trend of coffee, tea, mate and spices (five years)...........2054. Imports prices of coffee, tea, mate & spices (based on the most recent import during 1999

to 2001)...............................................................................................................................2075. Sources of imports of coffee, tea, mate & spices...............................................................2086. Export value of coffee, tea, mate & spices and share of individual items in the total export

(two years)..........................................................................................................................209A. Coffee.........................................................................................................................................211

1. Import value of coffee in 2000-01......................................................................................2112. Import volume of coffee.....................................................................................................2123. Projected import of coffee..................................................................................................2124. Export volume of coffee.....................................................................................................2135. Consumption of coffee.......................................................................................................2136. Average growth rate of consumption of coffee for the five years stands to be 17.88%.....2137. Projected consumption of coffee........................................................................................214

B. Tea 2141. Production of tea.................................................................................................................2142. Import value of tea in 2000-01...........................................................................................2153. Import volume of tea (five years).......................................................................................2154. Projected import of tea.......................................................................................................2165. Export volume of tea..........................................................................................................2166. Consumption of tea.............................................................................................................2177. Projected consumption of coffee........................................................................................217

C. Mate............................................................................................................................................2181. Import volume of mate.......................................................................................................2182. Projected import of mate....................................................................................................2183. Export volume of mate.......................................................................................................2194. Consumption of mate..........................................................................................................219

D. Spices.........................................................................................................................................2201. Import value of spices in 2000-01 and the share of individual items.................................2202. Import volume of spices with growth rate (five years)......................................................2213. Projected import of spices..................................................................................................2224. Export volume of spices.....................................................................................................2225. Consumption of spices........................................................................................................223

10


IV. IMPORT POLICY AND PROCEDURES.........................................................................223

1. Import licenses for public sector/government undertakings...............................................2232. Importer’s registration criteria............................................................................................2233. Import duties.......................................................................................................................2244. Preferential..........................................................................................................................2255. Other charges on imports....................................................................................................2256. Basis of assessment............................................................................................................2257. Documentary requirements for imports..............................................................................2258. Import channels..................................................................................................................2269. Local marketing channels...................................................................................................22610. Mark-up in distribution.......................................................................................................22611. Useful addresses.................................................................................................................226

Annex

Company profiles....................................................................................................................229

11


SUPPLY SURVEY

I. INTRODUCTION

Foreign trade is the backbone of a country’s economic structure. The economic front-runners of the world have demonstrated how an emphasis on foreign trade development helps in changing the fortune of nations. The International Trade Centre UNCTAD/WTO (ITC) is organising an ECO Buyers/Sellers meeting on Food and Beverages early next year. The countries covered by the series of surveys are Azerbaijan, Iran, Kazakhstan, Kyrgyz Republic, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan. To reach a more focused approach at the meeting, supply and demand surveys were conducted in the above-mentioned countries in order to ascertain the import requirements while also determining the export capacities.

The supply survey intends to:

(i) Describe the characteristics and structure of the industry;

(ii) Identify impediments affecting the exports;

(iii) Indicate possibilities for augmenting supplies and new investment opportunities;

(iv) Determine technical assistance requirements, in the areas of product development, packaging, market promotion, joint export marketing, export financing, costing and pricing, training in export marketing, etc.

The major objective of the supply survey was to provide information, which is most likely to be of interest to potential buyers of the product, such as technical specifications, packaging, export availability, prices, and commercial and regulatory conditions for the following product categories.

A. Meat and edible meat offal

1. Products covered under the survey

The study covers meat and edible meat products, divided into three main categories i.e.:

cows and buffaloes (beef);

goats and sheep (mutton);

poultry (chicken);

edible meat offal, etc.

The meat of horses and pigs is not included as these are religiously prohibited and commercially restricted in the country.

12


2. Significance of the product to the economy and foreign trade sector of the country

The importance of meat can be derived from its principal i.e. live stock industry. Livestock is a sub-sector of agriculture along with fisheries and forestry. It accounts for 37.5 percent of agriculture value added and about 9.3 percent of the GDP. Its net foreign exchange earnings remained of $0.88 billion in 2000-01, which is almost 12.34 percent of the overall export earnings of the country.

The role of livestock in rural economy may be realized from the fact that 30-35 million rural populations is engaged in livestock raising, having household holdings of 2-3 cattle/buffalo and 5-6 sheep/goat per family deriving 30-40 of their income from it. The livestock saves the rural masses from abject poverty and further decrease in their socio-economic well-being.

Share of livestock in GDP

1998-99 1999-00 2000-01

9.3% 9.1% 9.3%Source: Economic Survey of Pakistan 2001-02

GDP real growth rates – Livestock

Year 1996-97 1997-98 1998-99 1999-00 2000-01

GDP real growth rate (%) 4.42 5.92 3.19 1.90 4.86Source: Economic Survey of Pakistan 2001-02

The export of meat from Pakistan is relatively a new segment of the country’s trade, as the real commercial level export started in not before than. Thus, the export of meat and meat preparations is not so high; but the export growth rate is quite encouraging. Pakistan owns a large inventory of livestock, which determines a large size of meat exports in future. So, meat export is bound to be a good contributor to Pakistan’s foreign exchange in the years ahead.

Export of meat and edible meat offal (2000-01) – $5.13 m.

Total exports of Pakistan (2000-01) – $8,939.80 m.

Share of fish & crustaceans export in total export – 0.06%.

B. Fish and crustaceans

1. The product

The study covers edible fish & crustaceans yielded from both marine and in-land sources. As per nature, we can divide the commodities/products into two distinct categories:

shell fish: shrimps, prawn, lobster, crab, etc. (headless, shell-on, frozen and peeled frozen) ;

other fish: sole, tuna, pomfret, snapper, croaker, grouper, eel, barracuda, mackerel, sardine, catfish, lady fish, ribbon fish, cuttlefish, salmon, herring, squid and shark, etc. (whole, fillets, skin-on, fresh and frozen).

13



Fisheries industry plays a significant role in Pakistan’s economy and is considered to be a source of livelihood in particular for coastal inhabitants. Fisheries are a very important source of animal protein and a favorable source of basic food to a large population. Being a natural food suppliers and having unlimited resources, Pakistan’s waters have been and will remain feeding the ever-increasing population in future.

Fisheries though contributing very little to the country’s GDP, substantially support the national income through export earnings.

Export of fish & crustaceans – $132.58 m.

Total exports of Pakistan – $8,939.80 m.

Share of fish & crustaceans export in total export – 1.48% (Source: Foreign Trade Statistics).

Share of fisheries in country’s GDP – 0.9% (Source: Economic Survey of Pakistan).

Fisheries sector provides employment to about 361,000 people. Out of which, 137,000 persons (37.9%) are engaged in marine sector and 224.000 persons (62.1%) in inland fisheries. In addition, another 400,000 people are employed in ancillary industries. Source: Economic Survey of Pakistan

Fisheries are defined as the sub-sector of agriculture sector. It amount to about 4% of overall agriculture sector.

C. Edible fruits, nuts, peel of citrus fruit


Fruit & vegetable preparations including fruit juices, flakes of potatoes, guar meal, pickles, jams, fruit jellies, vegetable/fruit preserved by vinegar, etc. 2. Significance of the product to the economy and foreign trade sector of the country

Fruit & vegetable prep. export (2000-01) – $ 3.5 million.

Pakistan’s total exports (2000-01) – $8,939.80 m.

Percentage share of fruit & vegetable prep. exports in national exports – 0.039 %.

Fruit and vegetable processing industry is playing an important role by processing excessively produced fruits and vegetable, which might otherwise be wasted. A huge quantity of fruits and vegetables is wasted due to an inefficient farm to market infrastructure, lack of cold storages and less number of fruit processing plants. The fruit and vegetable processing industry helps the country earn a substantial foreign exchange through exports.

14


D. Cereals, milling products, malt, starches, etc.


The survey covers all cereals in general and major cereals, rice and wheat in particular.


Export of cereals – $ 547.74 m.

Total export of Pakistan – $ 8,939.80 m.

Percentage share of cereal exports in national exports – 6.12%.

Rice is a highly valued cash crop and is also a major export item. It accounts for 6.7% in value added in agriculture, 17% in major crops and 1.6% in country’s GDP.

Value addition of cereal crops to major agricultural crops

% age share

Commodity 1996-97 1997-98 1998-99 1999-00 2000-01

All major crops 100.00 % 100.00 % 100.00 % 100.00 % 100.00 %Wheat 29.41 30.63 29.24 32.13 30.53Rice 16.57 15.02 16.80 16.43 16.65Maize 2.86 2.63 3.49 3.10 3.38Barley 0.31 0.33 0.26 0.20 0.18Grain sorghum 0.48 0.47 0.47 0.40 0.44Millet 0.45 0.60 0.60 0.39 0.55

Source: Economic Survey of Pakistan 2001-02

E. Beverages, vinegar and spirits


Beverages:

(a) alcoholic beverages,

(b) non alcoholic beverages.

Spirits and alcoholic compounds.

15



Pakistan’s total exports – $ 8,939.80 m.

Beverages export – $ 0.039 m.

Spirits and alcoholic compounds export – $ 12.64m.

Percentage share of fruit exports in national exports – 0.00004 %.(the share of beverages in national exports is just negligible)

Percentage share of spirits and alcoholic compounds national exports – 0.14%.

National level production and sales of non-alcoholic beverages is quite tremendous. This industry contributes a lot to national exchequer. Carbonated beverages industry is third larges taxpayer of the industry after tobacco and petroleum.

A good amount of excise duty goes to the government against local sales of alcoholic beverages.

Fruit juice industry plays an important role by saving millions of tons of fruits that would have otherwise gone waste.

Trade expansion possibilities among the participating countries was the governing element in the interpretation of the above-mentioned objectives and in the formulation of research design for collection of data and analysis that ranges from desk research to in-depth interviews. All major government sources like Lahore/Karachi Chambers of Commerce, Federal Chambers of Commerce, Lahore/Karachi Export Promotion Bureaux, Small and Medium Enterprise Development Authority, Agricultural Census Organisation were contacted.

16


II. SUMMARIES

A. Fisheries


Share of fish & crustaceans export in total export – 1.48 %.

Share of fisheries in country’s GDP – 0.9 %.

Fisheries are defined as the sub-sector of agriculture sector. It amount to about 4% of overall agriculture sector.

Fisheries sector provides employment to about 361,000 people. Out of which, 137,000 persons (37.9%) are engaged in marine sector and 224.000 persons (62.1%) in inland fisheries. In addition, another 400,000 people are employed in ancillary industries.

2. Species found in Pakistan’s waters

About 350 different species of fish are found in Pakistan’s marine waters and in-land tracts/reservoirs. About 115 of them are of commercial importance. Following species have considerable share:

Species (English name) % of total catch

Requiem sharks 7.52%Sawfishes 10.95%Indian oil sardinellas 9.40%Tuna nei 4.04%Kiddi shrimps 2.96%Finfishes nei 3.63%Rays 3.75%Hair tail 2.61%Thryssas 2.81%Mullets 3.75%

3. Produce/catch distribution

In terms of output, fish obtained from marine sources account for the large share of nearly 80% of the total, while the produce of inland water is about 20%.

4. Yield of fish & crustaceans

Year 1996-97 1997-98 1998-99 1999-00 2000-01

Production (million Kgs) 556 590 597 654 629

17


5. Catch distribution and valuation

Total production from inland and marine waters is approximately 629 million kgs. About 80% (i.e. 503 million kgs.) comes from marine sources, whereas 20% (i.e. 126 million kgs.) is yielded from inland waters. According to the industry sources, the inedible marine fish catch counts about 70% of the total marine catch. The edible marine fish contains 65 million kgs (13%) of shrimp and 438 million kgs (87%) edible fish in volume. But the ratio is reverse in value. The shrimp exports fetch about 60% and other fish exports value 40% of the total export value.

6. Number of registered vessels

Year 1991 1992 1993 1994 1995 1996 1997 1998

No. of vessels 33744 30809 31359 38321 34677 35530 36533 37878

More than 50 long liners (for tuna fishing) and 30 foreign deep-sea fishing vessels are also operating under license by the authorities.

7. Quality standards and specifications used by the industry

The private sector companies have acquired state-of-the-art equipment to process fish and at the same time follow strict quality management programs under the supervision of local and foreign experts. A good number of processing units have acquired ISO-9000 certification whereas others are in the process of getting it. However up-gradation of processing methods is still needed.

Along with the Quality Control Act, 1997, many other acts, ordinances and rules are there to ensure quality controlled catch/processing and quality assured exports.

8. Export of fish & crustaceans

Year2000-01 1999-00

Volume Value Volume Value

Total export of fish & crustaceans 82.03 (mKg) 132.57 million 89.85 (mKg) 119.24 million

9. Share of major fish export items by value

Item % of total fish & crust. export

Flat fish frozen 3.37%Fish liver frozen 5.24%Shrimps shell-on frozen 19.54%Shrimps p&d frozen 31.58%Cuttlefish octopus, frozen or dried 5.64%

18


10. Export incentives provided by the government

Government of Pakistan highly encourages the export of fisheries. The stress is upon value added products. In order to encourage exports, a number of incentives are offered to the exporters.

11. Export channels

The fish is generally brought to the auction hall/market on the fish harbor where the processor/exporter or wholesaler purchase the catch. Almost all the processing units are located in Karachi. Therefore, the catch meant for processing/export is purchased at harbor. The purchase made for local sale is bought by a wholesaler who delivers it to the retailer in local market, which is ultimately sold to consumer.

Boat owner/fisherman commission agent wholesaler retailer consumer(Local marketing flow)

Boat owner/fisherman commission agent exporter/processor importer(Export marketing flow)

12. Shipping

Most of the export is made by sea. The consignments destined to EU, Japan and USA are in fresh or frozen form, whereas to Sri Lanka these are in dried, salted form.

13. Packaging

The broad packing requirements vary from product to product but some of major types of packaging are:

canning;

vacuum bag packing;

shrink wrapping;

jumbo packing.

14. Trade promotion government agencies/departments

A number of government departments including Export Promotion Bureau are responsible to plan and execute marketing campaigns for Fisheries products.

15. Trade promotion activities

Participation in international trade fairs.

National fisheries fairs.

Invitation to international buyers for visit.

Seminars and workshops to motivate the traders to extend their activities to international markets.

19


B. Edible fruits and nuts


Percentage share of fruit exports in national exports – 0.85%.

2. The soil & climate

Pakistan has great diversity in its soil. Its ecological and climate conditions too are highly diverse in different areas, ranging from extremely warm to temperate, to very cold. This enables the country to grow many kinds of plants and trees, which yield a large variety of fruits and nuts. Some trees and plants that are native to other parts of Asia, Africa, Europe and the Americas, flourish in Pakistan.

3. Demand & production

In addition to commercial scale production, large quantities of fruit are produced in small orchards around rural homes and pathways and consumed locally. The total number of orchards in Pakistan is about 328,400.

Production of fruits fully meets all its indigenous demand and a sizeable quantity is spared to supply to other countries.

According to Ministry of Food and Agriculture, about 30% of total yield is wasted due to post production care, lack of cold storage facility, and surplus supply vis-à-vis local demand. The internationally accepted ratio of such losses is 10%.

4. Major varieties of dates grown in Pakistan

Province Varieties

Punjab Hillawi, Khudrawi, Zahidi, ShmranSindh Aseel, Fasli, Bhedir, Karbalian, Kupro, MithriNWFP Dhakki, Muzawati, Kango, Gookna, Gulishtan, Basri, Halini and ZahidiBalochistan Begum Jangi, Kaharba, Mozawati, Berni, Halini, Sabzo

5. Value added products of dates

Following value added date products are manufactured in Pakistan:

dates with almonds;

chocolate coated dates;

date syrups;

dates vinegar;

dates jams;

dates murabba;

seedless dates blocks;

dates mixed with dry fruits;

20


dates alcohol;

dates animal feed;

table fruit/desert;

dates liquid sugar.

6. Citrus varieties

The main varieties of citrus produced in Pakistan are:

Kino,

Succri,

Mausami,

Washington Navel,

Jaffa,

Red Blood,

Ruby Red,

Mash Seedless,

Duncan,

Shamber.

Varieties of mango: Pakistan produces more than 250 varieties of mangoes. The important ones are Langra, Chausa, Sindhry, Bihishti, Samar, Malda, Anwarritol, Fajri Kalan and Fazli, etc.

7. Production of fruits in Pakistan

Figures in 000 tons

Year 1995-96 1996-97 1997-98 1998-99 1999-005-year

averageProduction of fruits 6091 6187 6295 6344 5846 6153

8. Important fruits of Pakistan

Citrus fruit, mango, banana, apple, guava, apricot, peach, pears, plums, grapes, pomegranate, dates and almonds are the important fruits of Pakistan. Dates, mangoes and citrus fruit are three top exporting fruits.

9. Production volume of dates

Thousand tons

Year 1996 1997 1998 1999 2000

Production 534 537 722 580 580

21


10. Production volume of citrus

Thousand tons

Year 1996-97 1997-98 1998-99 1999-00 2000-01

Citrus fruit 2002.6 2037 1861.5 1943.2 1898

11. Pakistan’s mango production

Thousand tons

Year 1996-97 1997-98 1998-99 1999-00 2000-01

Mango production 914.5 916.8 916.4 937.7 990

12. Irrigation system of Pakistan

Pakistan is known for its excellent network of canals and rich agricultural lands, with three major reservoirs – Tarbela, Mangla and Chashma – 23 barrages, 12 huge interlink canals, about 63,800 kilometers canal's length, 106 kilometers water courses and 107,000 no. of channels spreading all over the country. Furthermore, 565,000 tubewells are also installed in the country, which in case of decreased capacity of reservoirs and consistently low rains for sometime have become a vital component of the country’s agriculture. However, long standing draught and decrease in the water level in rivers and reservoirs is affecting the production negatively.

13. Quality standards and specifications used by the industry

Most of the importing countries have issued their own quality standards to Pakistan’s fruit exporters. The exporters have to follow these standards in order to acquire approval of their consignments from the importers.

As far as the growers are concerned, they are not well quality conscious, as they are highly contented upon natural conditions. However, as the know-how is increasing, some of the growers are now having proper quality management programs. A few growers have the availability of cold storage facility near the farm.

Very few fruit processors have adopted scientific and technological methods for selection, grading, processing and packing of fruits. Traditional manual methods are common.

Japan and Philippines restricted a conditional ban on the import of citrus fruit from Pakistan in November 2001. It was due to the presence of fruit fly here.

14. Quality control facilities

There’s a severe shortage of quality control facilities on all the stages i.e. orchards, processors, exporters, airports and in-land transportation companies.

22


15. Fruit export value

Million USD

Year 2000-01 1999-00 1998-99 1997-98 1996-97

Export value 76 68 46 46 46

16. Fruit export volume

Thousand tons

Year 2000-01 1999-00 1998-99 1997-98 1996-97

Export volume 260 240 181 202 219

Pakistan's exports of dates

Million $US

Year 1995-96 1996-97 1997-98 1998-99 1999-00

Value 16.0 24.7 27.2 21.7 24.0Growth % age 2% 54% 10% -20% 10%

17. Export of citrus

Thousand $US

Code Commodity 2000-01 1999-00

0571100 Oranges fresh or dried 179.98 362.160571201 Kino 15,760.30 11,949.780571202 Malta 24.46 4.310571204 Musambi 25.32 13.180571209 Mandarines and tangerines ns 2.02 51.820572101 Lemon fresh or dried 18.47 10.000572200 Grape fruit, fresh or dried - 0.320572900 Citrus fruit ns, fresh or dried - 5.07

Source: Foreign Trade Statistics of Pakistan, 2000-01

18. Pakistan’s mango export

Thousand dollars

Code Fruit2000-01 1999-00

USD% of total

fruit exportUSD

% of total fruit export

0579701 Mangoes, fresh 16,431.92 22% 9,951.96 15%0579702 Mangoes, dried 11.48 0% 18.31 0%

Source: Foreign Trade Statistics of Pakistan – 2000-01

23


19. Export incentives provided by the government

Government of Pakistan highly encourages the export of fruits. The stress is upon value added products. In order to encourage exports, following incentive is provided to exporters:

Import of machinery being installed in export oriented processing units in duty free.

In order to assist the processing units to fulfill the quality requirements of importers, the government provides a subsidy of about $2500 for ISO-9000 certification. It covers almost 25% of total cost incurred upon the certification process.

20. Marketing/export channels

Export agencies and the fruit processing units export most of the fruits. As the growers are having lack of knowledge about export procedures and are incompetent to export directly, a negligible export is done directly by them.

21. Pre-shipment inspection and quality control

Quarantine Department of Pakistan thoroughly inspects all fruit consignments and no consignment can be shipped without quality approval.


A number of government departments including Export Promotion Bureau are responsible to plan and execute marketing campaigns for Fruit products.

23. Trade promotion activities


National fruit fairs.





24


25. Production of cereals in Pakistan

Thousand tons

Commodity 1996-97 1997-98 1998-99 1999-00 2000-01

Wheat 16651 18694 17856 21079 19024Rice 4305 4333 4674 5156 4803Maize 1491 1517 1665 1652 1643Millet 146 211 213 156 199Grain sorghum 219 231 228 220 219Barley 150 174 137 117 99

The long dry spell throughout the country affected all the cereal crops in 2000-01

26. Raw material

Raw material for cereal production i.e. waters, seed and fertilizer are easily available. The growers are concerned about the ever-increasing prices of fertilizers.

27. Availability of labor and trained professional

More than 70% of Pakistan’s population is engaged in agriculture. The country has enormous human resources for cereal production.

28. Export value of cereals and cereal products

Figures in thousand USD

Year 2000-01 1999-00

Export 547,743 465,830

29. Major cereal items regarding export

Figures in 000

Sub code (SITC) Commodity

2000-01 1999-00

000 USD% of total

cereal export

000 USD% of total

cereal export

0423101 Rice basmati 229,376 41.88 249,380 53.530423102 Rice other varieties 282,221 51.52 214,042 45.950461001 Flour of wheat 21,307 3.89 - 0.000411000 Wheat unmilled 11,140 2.03 - 0

Rice alone constitutes 93% of total export of all cereals and cereal products. The share of wheat and wheat floor combinely contributes 6% to this export.

The export of wheat remained nil in 1999-00 due to ban on wheat export. The ban was due to increased local demand owing to feeding to millions of Afghan and Kashmiri migrants. Pakistan had to import wheat in 1999-00 in order to meet its local demand.

25


30. Production and export of malt

Barley is used in Pakistan mainly as animal feed. It is also milled to produce a powder, which is used with sugar to prepare a traditional summer drink called Sattoo. The conversion of Barley into malt is rare. As the beer industry in Pakistan is almost non-existent (only two breweries are allowed to operate), the consumption of malt is also negligible. However, the potential for malt export is enormous. At present, malt is not being exported, the reason being absence of organized malt producers. If the malt manufacturing is organized, Pakistan may earn a good foreign exchange.

31. Export potential of maize starches

As the existing starch manufacturing units are hardly fulfilling the needs of local consumer industries, the export of starches can be made possible if the new units are established or the existing units expand their capacities to a good extent. Due to its strategic geographical location, Pakistan can seize business opportunities in the regions emerging markets particularly Central Asian States, Middle East and South Asia.

32. Trade promotion of cereals

EPB is the major contributor in promotion of cereals abroad. It assures the participation of Pakistani exporters in important food exhibitions abroad. The exporters arrange stalls and exhibit their products and brands; thus get orders at the spot.

C. Preparations of vegetables, fruits and nuts


Fruit & vegetable preparations including fruit juices, flakes of potatoes, guar meal, pickles, jams, fruit jellies, vegetable/fruit preserved by vinegar, etc.


Percentage share of fruit & vegetable prep. exports in national exports: 0.039%.

Fruit and vegetable processing industry is playing an important role by processing excessively produced fruits and vegetable, which might otherwise be wasted.

3. Pickles

There are countless cottage units which are involved in preparing pickles and marketing them through the retail outlets. In organized sector, approximately 30 units are engaged in quantitative production of pickles. These units not only have good local sales but also export their pickles. The major export markets for pickles are Indonesia, United Kingdom, Qatar, Saudi Arabia, and UAE.

26


4. Production of fruit in Pakistan

Year 1995-96 1996-97 1997-98 1998-99 1999-005-year

averageProduction of fruit 6091 6187 6295 6344 5846 6153

5. Export value of fruit & vegetable preparations

Figures in 000

Year 2000-01 1999-00

Export 3501.74 3853.88

6. Major export items

Figures in 000

SITC Item

2000-01 1999-00

000 USD% of total fr. & veg.

export000 USD

% of total fr. & veg.

export0567101 Pickles 283.55 8.10 300.35 91.160591000 Orange juice 579.07 16.54 731.79 18.990593000 Juice of other citrus fruit 577.38 16.49 1359.87 35.290599501 Mango juice 835.26 23.85 368.19 9.550599509 Juice of other fruit/veg ns 991.77 28.32 913.55 23.700599600 Mixture of fruits or veg juices 35.70 1.02 24.43 0.63

Source: Foreign Trade Statistics of Pakistan 2000-01

7. Export channels

a) Channel of marketing

Organized units make mainly the exports. However, some of the small-scale manufacturers and trading agencies are also engaged in the export of these products. General trading channels are as under:

Fruit processing industry Wholesaler/distributor Retailer Customer(Local market)

Fruit Processing industry importer(Export market)

27


D. Beverages, spirits and vinegar


Beverages:a) alcoholic beverages,b) non alcoholic beverages.



Beverages export: $ 0.039 m.

Spirits and alcoholic compounds export: $12.64m.

Percentage share of beverages exports in national exports: 0.00004%.(the share of beverages in national exports is just negligible)

Percentage share of spirits and alcoholic compounds national exports: 0.14%.

Carbonated beverages industry is third largest tax payer of the industry after tobacco and petroleum.


3. Carbonated beverages

There has been a big jump in soft drink consumption in Pakistan over the past few years. There are 35 organized plants of carbonated drinks in the formal sector. It employs over 500,000 people directly and indirectly. Pepsi, Coca Cola, 7-Up, Pakola are major players. The main competitors are Pepsi and Coca Cola. Almost all the raw materials are available locally.

4. Non carbonated beverages

Pakistan’s non-carbonated drinks include mineral water, fruit juices, powdered concentrates, squashes and sharbet. These have good share in the national market. Rooh Afza made by Hamdard Pakistan leads the market in all these sub-segments. Tang holds the market of powdered concentrate.

Shezan, Benz, Sunflo, country, Tropico are the major players of fruit juice segment.

There is a great potential for export of non-carbonated drinks.

5. Alcoholic beverages

The possession, transport, manufacturing and sales/export of alcoholic drinks are forbidden in Pakistan. There’re only two breweries in Pakistan. That caters the non-Muslim community and the large hotels of the country. A considerable number of Muslims belonging to elite class are used to drink.

28


If the prohibition of exports is lifted, the immediate export of liquors is STILL not possible, as the industry is quite small.

6. Export value of beverages

SITC Item

2000-01 1999-00 1998-99 1997-98 1996-97

000 USD

% of total

beverage export

000 USD

% of total

beverage export

000 USD

% of total

beverage export

000 USD

% of total

beverage export

000 USD

% of total

beverage export

1110101Mineral water 35.84 91.88 45.66 45.89 15.87 29.82 8.37 58.52 0.08 0.33

1110200

Water sweetened & other nonalcoholic

3.17 8.12 53.83 54.11 6.29 11.81 0.00 0.00 0.00 0.00

1110102Aerated water 0.00 0.00 0.00 0.00 31.06 58.37 5.74 40.09 0.00 0.00

1121700Wine of fresh grape, grape must

0.00 0.00 0.00 0.00 0.00 0.00 0.20 1.39 0.00 0.00

1110103Ice and snow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 24.84 99.67

Total 39.00 100.00 99.49 100.00 53.22 100.00 14.31 100.00 24.93 100.00Source: Foreign Trade Statistics of Pakistan 2000-01

7. Export markets

SITC Item Export markets

1110101 Mineral water

KazakhstanAfghanistanTurkmenistanNigeria

1110200 Water sweetened & other nonalcoholic AzerbaijanAfghanistan

1110102 Aerated water Afghanistan1121700 Wine of fresh grape, grape must Switzerland1110103 Ice and snow Sri Lanka

E. Meat & edible meat offal


The study covers meat and edible meat products. The meat is divided into three main categories i.e.:

meat of cows and buffaloes (beef),

meat of goats and sheep (mutton),

meet of poultry (chicken),


29





Export of meat and edible meat offal (2000-01): $5.13 m.

Total exports of Pakistan (2000-01): $8,939.80 m.

Share of fish & crustaceans export in total export: 0.06%.

3. Production volume of meat

Thousand tons

Type1996-97 1997-98 1998-99 1999-00 2000-01

Volume % Volume % Volume % Volume % Volume %

Beef 919 48.17 940 51.06 963 50.52 986 50.25 1010 50.12Mutton 602 31.55 617 33.51 633 33.21 649 33.08 666 33.05Poultry 387 20.28 284 15.43 16.26 327 16.67 339 16.82Total 1908 100% 1841 100% 1906 100% 1962 100% 2015 100%

4. Per capita consumption of meat in Pakistan

Kg/head/year

1996 1997 1998 1999 2000

Beef 7.16 7.16 7.16 7.16 7.17Mutton 4.68 4.69 4.70 4.17 4.72Chicken 2.83 3.10 2.16 2.30 2.34

5. Poultry sub-sector

The most popular species among poultry in Pakistan is chicken. The commercial poultry birds, classified as Broiler, is the major source of chicken meat.

30


a) Production of commercial poultry

Million no.Production 2000-2001

Day old chicks 319.7Layers 18.1Broilers 253.3Breeding stock 6.2


6. Feed and fodder situation

Feed for the various livestock species in Pakistan is derived from the crop sector, rangelands and other grazing areas. Agro-industrial by-products and animal/fish meals and wastes also provide some proportion to the total feed supply. The present fodder supply is one third of the actual needs.

7. Sanitary and phytosanitry (SPS) conditions at slaughter houses

Hygienic conditions at slaughterhouses are not satisfactory. However steps are being made to establish modern slaughterhouses with better Phytosanitary (SPS) conditions.

8. Disease management

F & M, Rinderpest and other major diseases are not still widespread. Pakistan has a good network of veterinary services. However, further improvement and modernization are needed.

9. Research and development

Pakistan has a good network of institutes/departments that are engaged in delivering intensive education and training.

10. Export of meat

Year 2000-01 1999-00 1998-99 1997-98 1996-97

Volume (thousand tons) 3.27 3.92 n.a. 0.036 0.20Value (thousand USD) 5130 6045 1532 36.33 174.22

31


11. Major export items

Code Commodity2000-01 1999-00

000 USD%of total

meat export000 USD

%of total meat export

0111100Meat bovine fresh/chilled with bonebone

344 6.71 895 14.81

0121100 Meat of sheep, frozen or chilled 855 16.66 229 3.79

0121300Meat of goat fresh, chilled, frozen

3377 65.82 4665 77.17

0168100 Meat of bovine animals salted 233 4.54 109 1.81

0176000Meat offal bovine preparations preserved nes

223 4.34 0 0.00



A number of government departments including Export Promotion Bureau, are responsible to plan and execute marketing campaigns for meat products, especially the poultry products. Poultry Association is the representative association of all the poultry farms in the country.

32


III. MAIN REPORTS

A. Fish & crustaceans

1. Introduction

a) The product

The study covers edible fish & crustaceans yielded from both marine and in-land sources. As per nature, we can divide the commodities/products into two distinct categories:

shell fish: shrimps, prawn, lobster, crab, etc. (headless, shell-on, frozen and peeled frozen);

other fish: sole, tuna, pomfret, snapper, croaker, grouper, eel, barracuda, mackerel, sardine, catfish, lady fish, ribbon fish, cuttlefish, salmon, herring, squid and shark, etc. (whole, fillets, skin-on, fresh and frozen).

b) Significance of the product to the economy and foreign trade sector of the country

Fisheries industry plays a significant role in Pakistan’s economy and is considered to be a source of livelihood in particular for coastal inhabitants. Fisheries are a very important source of animal protein and a favorable source of basic food to a large population. Being a natural food suppliers and having unlimited resources, Pakistan’s waters have been and will remain feeding the ever-increasing population in future.

Fisheries though contributing very little to the country’s GDP, substantially support the national income through export earnings.

Export of fish & crustaceans: $132.58 m.

Total exports of Pakistan: $8,939.80 m.

Share of fish & crustaceans export in total export – 1.48%Source: Foreign Trade Statistics

Share of fisheries in country’s GDP – 0.9%Source: Economic Survey of Pakistan 2001-02

Fisheries sector provides employment to about 361,000 people. Out of which, 137,000 persons (37.9%) are engaged in marine sector and 224.000 persons (62.1%) in inland fisheries. In addition, another 400,000 people are employed in ancillary industries. Source: Economic Survey of Pakistan 2001-02

Fisheries are defined as the sub-sector of agriculture sector. It amounts to about 4% of overall agriculture sector.

c) Specific objectives of the survey

The major objective of the survey is to provide information, which is most likely to be of interest to potential buyers of Fish & Crustaceans, such as technical specification, packaging, export availability, prices and commercial & regulatory conditions.

33


d) HS code of fishes

As far as the coding system of fishes, these are coded on the bases of different items instead of generic species. As per the Pakistan’s export commodity coding, fishes there are as many as 30 such categories. Following is the list of export items and their national code and international HS code:

Code Export item

0341801 Haddock frozen or chilled0341802 Coal fish frozen or chilled0341809 Other fish frozen or chilled, ns0342200 Flat fish 0342802 Coal fish frozen0342809 Other fish frozen, ns0342901 Fish liver f0344222 Fish fillets frozen0345101 Fish fillets frozen or chilled0345102 Others fish meat, frozen or chilled0345500 Fish meat (excl fillet frozen)035130 Fish dried salted0351302 Fish dried unsalted0355222 Fish meal for human consumption0361101 Shrimps shell-on frozen0361102 Shrimps p&d frozen 0361901 Crabs, frozen0361902 Lobster, frozen0361904 Crabs, meat frozen0361905 Lobster, tails frozen0361909 Other crustaceans, frozen ns 0362001 Crabs, fresh0362002 Lobsters, live0362003 Shrimps, dried0362005 Shrimps, fresh0363700 Cuttlefish octopus, frozen or dried0371400 Mackerel whole/pieces not mince0371602 Fish maws0371604 Shark fins

Source: Foreign Trade Statistics 2000-01

34


2. Structure of the industry

a) Species found in Pakistan waters

About 350 different species of fish are found in Pakistan’s marine waters and in-land tracts/reservoirs. About 115 of them are of commercial importance. Following is the list of relatively important fishes and their share in total catch:


Bombay Duck 0.02%Seacat fishes 11.93%Greater Lizard fish 0.00%Dragger-tooth Pike-conger 1.08%Groupers 2.98%Sillago Whitings 0.05%False Trevally 0.00%Snappers 0.68%Japanese Threadfin Breams 0.21%Grunts 1.33%Spotted Croakers 2.08%Croakers Nei 2.10%Emperors 0.50%Longsspine Kingsoldier Bream 0.58%Seabreams Nei 0.27%Scats 0.00%Indo Pacific Flathead 0.00%Barracuda 0.57%Mullets 3.75%Threadfins 0.15%Hairtail Scad 0.75%Queenfishes 3.99%Travallies 1.39%Black Pomfret 0.45%Common Dolphin Fish 0.40%Silver pomfret 0.87%Cobia 0.27%Indian Oil Sardinellas 9.40%Thryssas 2.81%Dorab Wolfherrings 0.44%Clupeoidei Nei 5.44%Seerfishes 2.77%Long Tail Tuna 0.89%

35



Tuna Nei 4.04%Sailfishes 0.45%Black Marlins 0.38%Hair Tail 2.61%Requiem Sharks 7.52%Guitar fish 0.33%Rays 3.75%Sawfishes 10.95%Finfishes Nei 3.63%Swimming Crab 1.21%Palinurid Spiny Lobsters Nei 0.17%Panaeus Shrimps Nei (white) 1.13%Metapenaues Shrimps (brown/pink) 1.32%Kiddi Shrimps 2.96%Cephalopods Nei 1.39%

Among the total species Kiddy Shrimp, Finfishes Nei, Rays, Sawfishes, Requiem Sharks, Hair Tail, Tuna Nei, Seerfishes, Groupers, Seacat fishes, Spotted Croakers, Croakers Nei, Mullets, Indian Oil Sardinellas and Thryssas have considerable share

b) Fishing settlements/grounds

Major part of the fish catch in Pakistan is Marine, which forms 71 percent of the total catch. The Arabian Sea, which washes the coast of Sind and Balochistan, has rich fish deposits of commercial significance in close proximity. Pakistan has a very long range of coast-line with number of bays and broad continental shelf lying in front of Indus deltas and other natural factors which are ideal for growth of marine life in general and fisheries of commercial importance in particular.

The total seacoast of Pakistan is 682 miles, of which Balochistan and Sind have 477 and 205 miles respectively. Of the Balochistan coastline Makran has 367 miles and Lasbella district of Kalat division 110 miles. Makran coast falls under Gawadar district, east of which is Lasbella district, to the west is Iran’s border, to the north is Turbat district and Arabian Sea is to the south. Lasbella district has Karachi to east, Gawadar to the west, Khuzdar to north and Arabian sea is to the south. The Baluchistan coast runs east to the west while Sind coast runs diagonally from north to south. The coastline of Karachi is more than 110 miles long. It extends from lailath on the east situated on the first channel of Korangi creek upto Beda situated on the north west of Karachi on Sonmiani Bay.

There are 30 fishing settlements out of which 19 fishing villages are of permanent nature. Temporary fishing centers are inhabited only during fishing season and abandoned later on.

Marine fishing is undertaken from right beyond the seacoast to 200 n. miles in the sea. The distance has been divided into two broad categories known as: (1) Coastal Water Fishing, and (2) Deep-Sea Fishing. Deep Sea is further divided in two zones. The distance specified are: up-to 12 n. miles for coastal water fishing, 12 to 35 N miles for Zone 1 and 35 to 200 n. miles for Zone II.

36


Coastal Water Fishing is done in the villages along the coast that are predominately inhabited by fisherman whose main livelihood is fishing. The fishermen community is mainly Sindis, Balochis, Kutchies, Zikries and Makranis. Karachi, which is the nucleus of fishing industry, is an old fishing settlement.

In Sind the south of the Karachi Coastal area is Indus delta and has a number of fishing settlements in creeks, of which Keti Bunder is an important center.

In Balochistan the major centers for fish catching are (i) Ormara (ii) Kalmat (iii) Pasni (iv) Gawadar (v) Jiwani (vi) Kor Bandar, (vii) Ras Shumal Bundar (viii) Kapar (ix) Sur (x) Peshukan and Bandari. Lassbella district has Sonmiani, Damb and Gadani as its fishing centres.

c) Main harbors and landing points

The harbors and main landing points with their provincial location and relative importance are as follows:

No Locality Province Relative importance

1. Karachi Sind **** H2. Korangi Sind *** H3. Ibrahim Haidery Sind **4. Shams Peer Sind *5. Lath Basti Sind *6. Hawks Bay Coast Sind *7. Manjhar Sind *8. Sonari Sind *9. Mubarrak Village Sind *10. Kaitee Bandar Sind **11. Shah Bandar Sind **12. Kharo Chaan Sind **13. Jatthi Sind **14. Jhungi Sur Sind **15. Badeen Sind **16. Gowadar Baluchistan *** H17. Pasni Baluchistan *** H18. Ormara Baluchistan ***19. Gaddani Baluchistan **20. Bhunda Wari Baluchistan *21. Beroo Baluchistan *22. Sonmiani Daam Baluchistan **

* meets local users requirements** important*** very important**** most importantH = Fishing Harbor

37


d) Catch distribution and valuation

According to the industry sources the inedible fish catch counts about 70% of the total marine catch. The 211,100 Mt marine edible fish consist 27,4 44(13%) of shrimp and 183656 Mt (87%) consist of edible fish in volume. But the ratio is reverse in value. The 17,499 tons of shrimp exported in 1997, fetched about US$ 104,986(61%) and 59,791 tons of fish exported fetched US$66,599 (39%) of the total export value.

e) Inland water tracts

The inland water tracts in various parts of Pakistan, which yield fish, add up to about 12 million hectares and include rivers, canals, lakes, dams, reservoirs, estuaries, ponds, paddy fields and water logged areas.

f) Fish farms

Along with the catch from sea and inland water tracts, the output comes from more than 7000 fish farms across the country.

g) Produce/catch distribution

In terms of output, fish obtained from marine sources account for the large share of nearly 80% of the total, while the produce of inland water is about 20%.

h) Produce range/species

As many as 350 species of marine fish are found in Pakistani territorial waters.

i) Shrimps landing

In the absence of shrimp farming activities of any significance, fishery export industry in Pakistan is mainly dependent on captured fishery for shrimp operation from the coast of Sind and Balochistan provinces. Altogether, there are 15 species of marine shrimps in Pakistani waters falling under two families of Peneidae and Solenoceriadae of which commercially important species fall under the Peneidae family. Of these Kiddi shrimp alone accounts for nearly 49 percent of the total shrimp production. However, banana shrimp, Indian white shrimp and red-tail prawn form the so-called Jaira shrimp is commercially the most important category. Shrimp of Metapaneous spp are collectively called Kalr in local language. All these species are found at different salinity and depth ranging from brackish waters and coastal waters to a depth of some 170 m.

Shrimp fishery is active from August to February, mostly in shallow waters. Yearly shrimp landings have been fluctuating widely from last 10 years ranging from 27921 Mt in 1990 and 25269 Mt in 1998. It is clear that the maximum sustainable level of exploitation has already been reached in the available resources. This has also been confirmed by stock assessment studies indicating the “Jhaira” shrimp in Pakistan was overfished even as early as 1986. It is obvious that there is little scope for any substantial increases in shrimp production from capture fisheries in Pakistan.

38


j) Cephalopod landings

Among the three common groups of cephalopods mostly squids and cuttle fish are being exploited with only stray catches of octopus, mostly from coastal waters. This fishing is mostly taken by haila a one-day fishing. There is no targeted fishery for cephalopods and almost the entire quantity landed is obtained as a by-catch from shrimp fishery.

Fish species: a variety of marine life is found on the seacoast of Pakistan, more than 30 species of Shrimps, 10 species of Crabs, 5 species of Lobster and about 70 commercial species of fish including Sardine, Hilsa, shark, Mackerel, Butterfish, Pomfret, Sole, Tuna, Sea Bream, Jew Fish and Cat Fish, Shark, Eel and Shrimp.Source: SMEDA

k) Channel of disposition (marine and inland)

In million kgs

Disposition channels 1994 1995 1996 1997 1998

Fresh fish marketing 229.13 238.31 237.92 261.36 268.74Freezing 52.38 41.48 48.45 56.12 53.50Canning 0.16 0.032 0.120 0.090 -Curing 42.55 42.15 44.45 46.55 46.05Subsistence 44.69 34.46 36.10 36.48 38.55Fish meal 189.20 185.49 188.44 189.13 190.15Total 558.10 541.92 555.49 589.73 596.98

Source: Marine Fisheries Department/SMEDA

3. Capacity and production

a) Yield of fish & crustaceans

Million Kgs

Year 1996-97 1997-98 1998-99 1999-00 2000-01

Production (million Kgs) 556 590 597 654 629Source: Economic Survey of Pakistan 2001-02

b) Catch distribution and valuation

Total production from inland and marine waters is approximately 629 million kgs. About 80% (i.e. 503 million kgs.) comes from marine sources, whereas 20% (i.e. 126 million kgs.) is yielded from inland waters. According to the industry sources, the inedible marine fish catch counts about 70% of the total marine catch. The edible marine fish contains 65 million kgs (13%) of shrimp and 438 million kgs (87%) edible fish in volume. But the ratio is reverse in value. The shrimp exports fetch about 60% and other fish exports value 40% of the total export value.

39


c) Measures to ensure fuller capacity

The following measure are suggested to ensure fuller capacity:

up-gradation of fishing vessels to control post harvest losses;

provision of modern peeling sheds for providing raw material to fish processing industry;

flake ice plants at harbors;

promotion of marine aquaculture and human resource development through training programs;

construction of a coastal highway.Source: The Nation, 22 Dec. 2001

d) Measures to expand capacity

Marine Fisheries Department is executing mega project, namely Hatchery Complex for Production of Fish/Shrimp Seeds. It will play a vital role for the development of fish and shrimp farming. Source: Pakistan Almanac 2000-01

The immediate need is in the shrimp fishery to enforce measures, which will stop over fishing because of too many trawlers. This will allow the stocks of “jhaira” and “kalri” Shrimp to recover and production to rise. These measures should also minimize the danger of depletion of shrimp stock (including “kiddi”) through overexploitation.

Most of un-exploited demersal species are located in the portion of the continental shelf beyond the 20-meter depth line. Financial and Technical assistance is needed at this stage to convert the shrimp trawlers to gill netting, and long lining for exploiting under-utilized stocks. Potential exists for catching pelagic such as Tuna, Mackerel and Shark. Cuttlefish and Squid resources exist on the continental shelf and oceanic Squid beyond the shelf.

e) Investment required for capacity improvement

In a nutshell, we may claim that lack of financial resources both with the government and the catchers is main reason of under-utilization of fisheries resources. A great number of boats are not operated just because the catchers do not have enough resources to stay for days in the sea. Furthermore, government and its agencies are lacking funds to explore the sea and to provide updated facilities of fishing technology, preservation, packaging and marketing of fisheries. If a good amount of funds are injected, the industry can grow manifold.

40


f) Types of vessels used in fishing

Pakistan has a variety of fishing equipment as per fishing requirement i.e. from very simple net to fishing boats to deep-sea trawlers. From the inland sources, fishing is done by simple methods, whereas comparatively modern and comprehensive equipment is needed for marine fishing. The following types of fishing vessels are currently operating in Pakistan:

Trawlers,

Gill-netters,

Long liners,

Howra for fresh trash fish,

Dhonda (gill-netters).

g) Number of registered vessels

Consolidated summary of registered fishing vessels is tabulated below:

In numbers

Vessels (categories) 1991 1992 1993 1994 1995 1996 1997 1998

SINDTrawlers 2007 2009 2028 2245 2252 2310 2427 2522Gill-netters 1480 1513 1604 1865 1871 1945 2015 2236Motorized cum-sailing 2940 3153 3211 3424 3430 3526 3611 3695Sail boats (Marine) 5505 5598 5651 5884 5895 5922 6253 6285Total 11932 12273 12494 13418 13448 13703 14306 14738BALOCHISTANTrawlers - - - - - - - -Gill-netters 633 682 765 860 941 1019 1111 1162Motorized cum-sailing 3086 3239 3313 3552 3826 4022 4195 4250Sail boats (Marine) 159 142 142 89 23 26 39 39Total 3878 4063 4220 4501 4790 5067 5345 5451

Total Marine 15810 16336 16714 17919 18238 18770 19651 20189Total inland 17934 14473 14645 20402 16439 16760 16882 17689Grand total 33744 30809 31359 38321 34677 35530 36533 37878

Although there are around 20,189 vessels registered for marine fishing but it is estimated that in actual the number of vessels in active operation can be as low as 4000.

More than 50 long liners (for tuna fishing) and 30 foreign deep-sea fishing vessels are also operating under license by the authorities.

41


h) Vessel's description

i) Trawlers

This vessel uses a trawling net for targeted shrimp catching. The net size (eye) varies according to the need of the owner and crew and weighs around 0.6 tons. These boats require powerful and well-maintained engines for pulling the trawling net “gujja”. The size of these trawlers varies from 30 to 45 feet keel length and the crew ranges between 12-20 men. Trawlers remain continuously in operation from August till May. These trawlers are required to be registered with MMD (Mercantile Marine Department). These trawlers are fitted with 66-240 HP marine diesel engines as well as non-marine engines. For cost effective trawling operations on long voyages it is imperative that the vessels are fitted with marine engines capable of continuous running throughout the voyage.

ii) Gill-netters

This vessel uses net for catching fish, these nets are relatively big and weigh around 0.6 to 2.5 tons. The size of these trawlers varies from 45-60 feet keel length and the crew ranges between 15 and 34 men. They remain continuously in operation throughout the year, except June, July and August. During gill netting their engines remain idle. These vessels are required to be registered with MMD (Mercantile Marine Department).

iii) Long liners

These are mainly deep sea fishing vessels over 100 GRT rating and are similar to trawlers but are equipped with winches for net pulling. Capacity is large and have powerful engines. These trawlers are required to be registered with MMD (Mercantile Marine Department).

iv) “Howra” for fresh fish

These vessels are same as gill-netters with average overall length varying between 30-40 feet. Used for fishing voyage of one to three days. Use of ice is rather limited due to short duration. Most of these have removable fish holds.

v) “Dhonda” (gill-netters)

These vessels are small lifeboats converted into fishing gill-netters. They use small nets and mostly “kundi”. Their size is below 30 feet and voyage ranges between one to three days.Source: SMEDA

42


4. Quality standards

a) Quality standards and specifications used by the industry

Fishermen Cooperative Society (FCS), Karachi Fish Harbor Authority (KFHA) AND export Promotion Bureau (EPB) are responsible for taking adequate measures to maintain the hygienic conditions in Karachi Fish Harbor and up-gradation of fish processing units to meet international quality standards. EPB provides assistance to all agencies concerned with export of fish from Pakistan.

The private sector companies have acquired state-of –the-art equipment to process fish and at the same time follow strict quality management programs under the supervision of local and foreign experts. A good number of processing units have acquired ISO-9000 certification whereas others are in the process of getting it. However up-gradation of processing methods is still needed.

Following the recommendations of European Union delegation, EPB has recently imported 10,000 fish crates and 200,000 fish boxes to be used in auction halls, fishing trawlers and processing units. This will contribute to meet the European Union quality control and hygienic requirements. EPB also provides funds for procurement of quality control equipment and cleaning appliances, up-gradation of quality control laboratory and auction halls and modernization of fish processing units.

Export Promotion Bureau ‘s role quality improvement: EPB has been the main coordinating agency in improving the hygienic conditions in Karachi Fish Harbor and up-gradation of fish processing units to meet European Union and international standards.

Ministry of Commerce/Export Promotion Bureau provides assistance to all agencies concerned with export of fish/seafood from Pakistan. The following assistance/funds were provided by EPB to Karachi Fish Harbor to meet the European Union requirements regarding hygienic conditions at the harbor:

EPB has funded an amount of $ 0.3 million for the following:

Import of 10000 fish crates that are being used in auction halls, fishing trawlers and processing units.

Import of 200,000 fish boxes to meet the requirement at Karachi Fish Harbor.

Procurement of appliances and equipments for up-gradation of Quality Control Laboratory to meet European Union requirement.

Procurement of 200 fiber glass trolleys for handling of fish/shrimps at Karachi Fish Harbor

Up-gradation of auction halls in Karachi Fish Harbor.

Procurement of hot water pressure washing machine for cleaning of boxes and auction halls and foot operated taps for Karachi Fish Harbor.

Up-gradation of 7 fish processing units for the approval by the EU Inspection Mission during the month of March’ 1999.

Source: Singapore Report Sep. 99

43


b) Pre-shipment inspection and quality control

In order to comply with EU/international Regulations and to control the quality of seafood, Government of Pakistan promulgated Pakistan Fish Inspection and Quality Control Act, 1997 and Rules, 1998. Quarantine Department of Pakistan thoroughly inspects all fisheries consignments and no consignment can be shipped without quality approval. Furthermore a number of private inspection agencies are functioning and provide adequate services of pre-shipment inspection.

Along with the Quality Control Act, 1997, the following acts, ordinances and rules are there to ensure quality controlled catch/processing and quality assured exports:

i) The Pakistan Fish Inspection & Quality Control Amendment (Ordinance), 1998.

ii) The Pakistan Fish Inspection & Quality Control Rules, 1998.

iii)The Sind Fisheries Ordinance, 1980.

iv)The Balochistan Sea Fisheries Act No. IX of 1971.

v) The Pakistan Environmental Protection Act, 1997.

vi)The Agriculture Produce (Grading & Marketing) Act 1937.

vii) The Pakistan Animal Quarantine (Import and Exports of Animal and Animal Products) Ordinance, 1979

viii)The Karachi Fish Harbour Authority Ordinance, 1984.


a) Technology and technical know-how in the industry

Most of the fishing sector is based upon traditional fishing, storage and preservation technology. Whereas, the processing sector conforms to the international standards to a good extent. General fishermen have lesser know-how and approach to the latest fishing technology. However the management and the staff of most of the processing units are quality conscious and are well-trained as these units have to cater strict quality requirements of their international buyers.

Some important fishery related research & educational institutes are as under:

National Institute of Oceanography (NIO)Director General NIO, ST-47, Block- 1, Clifton, Karachi. Tel. 21-5860028-30

Centre of Excellence in Marine BiologyDirector, Department of Botany, University of Karachi Tel. 21-470572 – 479001

Research and Training Institute of FisheriesLahore

44


Fisheries Research CentreManawan

Fisheries Department of Agricultural UniversityFaisalabad

In order to meet international standards, Marine Fisheries Department of Pakistan has established biochemical and micro-biochemical laboratories.

Pakistan Council of Scientific and Industrial Research (PCSIR) has developed scientific processes for inspection of fishery products.Source: Economic Survey of Pakistan 2001-02

6. Domestic demand

a) Export demand v domestic demand

Out of the total fish output, the domestic consumption is only about 30%, the per capita consumption being 5 kg annually. This is because of the preference of sectors of population for beef or mutton. About 10% of catch is processed for exports, while the rest is converted into fishmeal or becomes stale at the fish markets. The fishmeal is for the local poultry industry.

7. Exports

a) Fish & crustacean export value

Amount in 000

No. CodeItem 2000-01 1999-01

Prs. USD % Prs. USD %

1 0341801 Haddock frozen or chilled 861 14.28 0.01 - - -

2 0341802 Coal fish frozen or chilled 778 12.90 0.01 - - -

3 0341809 Other fish frozen or chilled, ns 496,587 8,235.27 6.21 331,363 5,495.24 4.61

4 0342200 Flat fish 297,835 4,939.22 3.73 401,016 6,650.35 5.58

5 0342802 Coal fish frozen 111 1.84 0.00 - - -

6 0342809 Other fish frozen, ns 1,020,179 16,918.39 12.76 983,140 16,304.15 13.67

7 0342901 Fish liver frozen 419,031 6,949.10 5.24 514,222 8,527.73 7.15

8 0344222 Fish fillets frozen 116 1.92 0.00 - - -

9 0345101 Fish fillets frozen or chilled 3,391 56.24 0.04 - - -

10 0345102 Others fish meat, frozen or chilled 1,972 32.70 0.02 - - -

11 0345500 Fish meat (excl fillet frozen) 508 8.42 0.01 - - -

12 035130 Fish dried salted 595,849 9,881.41 7.45 572,752 9,498.37 7.97

13 0351302 Fish dried unsalted 578 9.59 0.01 - - -

14 0355222 Fish meal for human consumption 50,494 837.38 0.63 41,097 681.54 0.57

15 0361101 Shrimps shell-on frozen 1,562,403 25,910.50 19.54 1,319,764 21,886.63 18.35

45


No. CodeItem 2000-01 1999-01

Prs. USD % Prs. USD %

16 0361102 Shrimps p&d frozen 2,524,873 41,871.86 31.58 2,036,789 33,777.60 28.33

17 0361901 Crabs, frozen 8,153 135.21 0.10 37,426 620.66 0.52

18 0361902 Lobster, frozen 48,331 801.51 0.60 48,463 803.70 0.67

19 0361904 Crabs, meat frozen 76,890 1,275.12 0.96 57,427 952.35 0.80

20 0361905 Lobster, tails frozen 349 5.79 0.00 - - -

21 0361909 Other crustaceans, frozen ns 5,860 97.18 0.07 10,583 175.51 0.15

22 0362001 Crabs, fresh 96,755 1,604.56 1.21 154,288 2,558.67 2.15

23 0362002 Lobsters, live 21,764 360.93 0.27 44,183 732.72 0.61

24 0362003 Shrimps, dried 495 8.21 0.01 716 11.87 0.01

25 0362005 Shrimps, fresh 32,464 538.37 0.41 2,196 36.42 0.03

26 0363700 Cuttlefish octopus, frozen or dried 451,278 7,483.88 5.64 446,183 7,399.39 6.20

27 0371400 Mackerel whole/pieces not mince 849 14.08 0.01 - - -

28 0371602 Fish maws 171,040 2,836.48 2.14 84,428 1,400.13 1.17

29 0371604 Shark fins 104,697 1,736.27 1.31 104,681 1,736.00 1.46

Total 132,578.62 119,249.04

Source: Foreign Trade Statistics of Pakistan 2000-01of Pakistan 2000-01

b) Fish quantity export as % of total catch, marine catch, edible marine catch

The table below shows total catch exported as percentage of marine catch and marine edible catch. The table clearly shows a decline in % age export volumes from 1997 to 98. This is mainly because of deterioration in quality of seafood.

Year

Total catch

Marine catch

Edible marine catch

Pakistan's exports

Export as % of

t.catch

Export as % of

m.catch

Export as % of edible

m.catchIn million

kgIn million

kgIn million

kgIn million

kg% % %

1994 558,099 418,574 230372 62,669 11.23% 14.97% 27.20%1995 541,917 405,492 220004 65,773 12.14% 16.22% 29.90%1996 555,489 395,397 206953 79,577 14.33% 20.13% 38.45%1997 589,731 422,201 211100 77,290 13.11% 18.31% 36.61%1998 596,980 433,456 243306 77,554 12.99% 17.89% 31.88%

Source: SMEDA

c) Export volume

Year 2000-01 1999-00 1998-99 1997-98 1996-97

Export volume (mKg) 82.03 89.85

46


d) Share of major fish export items by value

Figures in 000

Code Item2000-01 1999-00

Prs USD % Prs. USD %

0342200 Flat fish frozen 297,835 4,939.22 3.37% 401,016 6,650.35 5.580342901 Fish liver frozen 419.031 6,949.10 5.24% 514,222 8,527.73 7.150361101 Shrimps shell-on frozen 1,562.403 25,910.50 19.54% 1,319,764 21,886.63 21.880361102 Shrimps p&d frozen 2,524.873 41,871.86 31.58% 2,036,789 33,777.60 33.70

0363700Cuttlefish octopus, frozen or dried

451.278 7,483.88 5.64% 446,183 7,399.39 6.20

Total 74% 73%Source: Foreign Trade Statistics of Pakistan 2000-01of Pakistan 2000-01

e) Reasons for fluctuation

Fish export has shown an increasing trend in the past many years, however, a substantial decrease has occurred during 1998-99 which is attributed mainly due to glut in the international market and because of financial crises in the Southeast Asian countries.Source: Singapore Report Sep. 99

47


f) Major export markets

Code Item Major market (share-wise)

0342200 Flat fish frozen

ChinaSouth KoreaSaudi ArabiaMalaysiaJapanThailandDubaiGermany

0342901 Fish liver frozen

ChinaSouth KoreaHong KongSingaporeMalaysiaJapanUnited KingdomNetherlandsItalyUSA

0361101 Shrimps shell-on frozen

United KingdomNetherlandsJapanBelgiumUSAMalaysiaFranceDubaiChina

0361102 Shrimps p&d frozen

United KingdomNetherlandsJapanUSABelgiumFranceSpainGermanyDubai

0363700Cuttlefish octopus, frozen or dried

ChinaJapanSouth KoreaMalaysiaSaudi ArabiaHong Kong ThailandUSAUnited KingdomNetherlands

Source: Foreign Trade Statistics of Pakistan 2000-01 of Pakistan 2000-01

48


g) Export prices

Following is the average price per kg of different fish.

Code Item Price $/Kg

0341801 Haddock frozen or chilled 1.640341802 Coal fish frozen or chilled 1.560341809 Other fish frozen or chilled, ns 1.540342200 Flat fish 1.000342802 Coal fish frozen 1.840342809 Other fish frozen, ns 1.010342901 Fish liver f 0.930344222 Fish fillets frozen 1.240345101 Fish fillets frozen or chilled 2.950345102 Others fish meat, frozen or chilled 1.840345500 Fish meat (excl fillet frozen) 1.05035130 Fish dried salted 0.490351302 Fish dried unsalted 0.750355222 Fish meal for human consumption 0.210361101 Shrimps shell-on frozen 4.770361102 Shrimps p&d frozen 4.950361901 Crabs, frozen 1.740361902 Lobster, frozen 11.150361904 Crabs, meat frozen 6.830361905 Lobster, tails frozen 0.640361909 Other crustaceans, frozen ns 0.590362001 Crabs, fresh 1.060362002 Lobsters, live 12.080362003 Shrimps, dried 1.330362005 Shrimps, fresh 2.770363700 Cuttlefish octopus, frozen or dried 1.060371400 Mackerel whole/pieces not mince 0.560371602 Fish maws 17.940371604 Shark fins 19.28

Source: Foreign Trade Statistics of Pakistan 2000-01of Pakistan 2000-01

49


h) Major exporters of seafood

SEA HAWKS (PVT) LTD.106,COMMERCE CENTRHASRAT MOHANI ROAD KARACHI.Tel. 0092-21-2631918Fax 0092-21-2631919

SUPER STAR ENTERPRISESC-1 C-2 FISH HERBOUR WEST WHARFKARACHI Tel. 0092-21-2200292-5Fax 0092-21-2200291Mobile: 0333-2132323E-mail: [email protected]

SIEGFRIED BEACON OF PAKISTANPVT. LTD.APARTMENT1 BUILDING11712TH STREET PHASE-1, D.H.AKARACHI..Tel. 0092-21-5889061

NEPTUNE FISHERIES1ST,FLOOR, BLDG. NO.2HOCKEY CLUBKARACHI PAKISTANTel. 0092-21-5678616Fax 0092-21-5683979Mobile: 0320-226121E-mail: [email protected]

PAK EXPORTSC-5, FISH HARBORWEST WHARFKARACHITel. 0092-21-2313601-2, 2314694

SEA GREEN ENTERPRISES (PVT) LTDA-2 FISH HARBOR WEST WHARFKARACHITel. 0092-21-2311117Fax 0092-21-2310324Mobile: 0300-8232541E-mail: [email protected]

SHAHSONS FISHERIES (PVT) LTD.D-6, FISH HARBOR, WEST WHARFKARACHI Tel. 0092-21-2311209Fax 0092:21:2311661E-mail: [email protected]

A.G. FISHERIES (PVT) LTDB-5 FISH HARBOR WEST WHARFKARACHI PAKISTAN.Tel. 0092-21-2312606Fax 0092-21-2310318E-mail: [email protected]

MARINE FOOD INDUSTRIES PVT. LTD.B-13, IBRAHIM HAIDRYKORANGI CREEKKARACHITel. 0092-21-5090750Fax 0092-21-5090815Mobile: 0333-2135361E-mail: [email protected]:www.marinefood.com.pk

ABC FISHING CORPORATION.GROUND FLOORGULZAR CHAMBER21 WEST WHARE ROADKARACHITel. 0092-21-5820671-2Fax 0092-21-5820673Mobile: 030092-8233992E-mail: [email protected]

SPECTRUM FISHERIES LTD.E- 1 FISH HARBORWEST WHARF P.O. BOX 6111KARACHI-74000, PAKISTAN.Tel.0092-21-2313331-4Fax 0092-21-2314444E-mail: [email protected]: 0303-7325965

MAKRAN FISHERIESN/A B-2/B-4 FISH HARBOR .WEST WHARFKARACHITel. 0092-21-2311240-3Fax 0092-21-2310923

50

mailto:[email protected]


url:www.marinefood.com.pk








KANPA INTERNATIONAL SALESD-3, FISH HARBORWEST WHARF ROADP.O. BOX 6026 KARACHITel. 0092-21-2310044 –2312290Fax 0092-21-2312879Mobile: 030092-8249434E-mail: [email protected]

SEA MILES INT’L7-BOAT BUILDING YARDADJ. FISH HARBORWEST WHARFKARACHITel. 0092-21-2314333Fax 0092-21-2310431E-mail: [email protected]

COASTAL SEAFOODS33, ROAD NO. 1WEST WHARF INDUSTRIAL AREA KARACHITel. 0092-21-2312511Fax 0092-21-2310318

AIM TRADING CONCERNA-243, BLOCK-CNORTH NAZIMABADKARACHITel. 0092-21-5877214Fax 0092-21-5877213

SEA VITA FISHERIESB-1, FISH HARBOR WEST WHARFKARACHITel. 0092-21-2316794–95Fax 0092-21-2316206

FIDATIQUE SONS INT’LMR-5/10 MITHADAR CHOWKDARYALAL ST. JODIA BAZARKARACHITel. 0092-21-6639377Fax 0092-21-2315298

PEOPLE FISHERIES (PVT) LTD.C-3 FISH HARBOR WEST WHARFKARACHI – PAKISTANTel. 0092-21-2311773Fax 0092-21-2311772Mobile: [email protected]

KHAN IMPEXB-112, HASSANABAD COLONYBLOCK-E NORTH NAZIMABADKARACHITel. 0092-21-6619556Fax 0092-21-6619556

Source: EPB

8. Export policies and incentives

a) Export incentives provided by the government

Government of Pakistan highly encourages the export of fisheries. The stress is upon value added products. In order to encourage exports, following incentives are provided to the exporters:

1. Import of machinery being installed in export oriented processing unit in duty free.

2. To promote of value added seafood export (as against commodity) lowest withholding tax i.e. 0.75% is levied on fish and fishery products packed in retail packs of 500 gm to 2 kgs. The withholding tax on fish commodities is 1%.

3. Fishing/catching stage operators have being given the status of indirect exporters to facilitate duty free import of machinery and equipment, like navigational equipment, fish finder, storage and handling equipment, etc.

4. Duty free import of shrimp meal and baby shrimp(seed) is allowed to the export oriented farms.

5. In order to assist the processing units to fulfill the quality requirements of importers, the government provides a subsidy of about $2500 for ISO-9000 certification. It covers almost 25% of total cost incurred upon the certification process.

Source: Pakistan Almanac 2000-01

51





11. Export channels

b) Export/marketing channels

The marketing channel of fishery in Pakistan is more or less similar to those of agricultural products, where landlord provides the land and the peasant grows the commodities. The produce is then sold in the market through commission agents to wholesalers and then to retailers and finally to consumers. The income after deducting the cost of direct inputs is shared by the landlord and the peasant.

Similarly, the flow of the fish is channeled from boat owner/fish catcher to commission agent, to wholesaler, to retailer, to consumer for local market. It goes from commission agent to exporter/processor to importer to consumer for export market.

Boat owner/fisherman commission agent wholesaler retailer consumer(Local marketing flow)

Boat owner/fisherman commission agent exporter/processor importer(Export marketing flow)

The owner of the vessel is usually separate from the fish catcher, known as “Na Khuda”. The system is that the owner lends his boat to the “Na Khuda” on profit sharing basis, generally equally divided. Thus, if the catch is sold, hypothetically, for $255 the owner will deduct the direct cost of such items as oil, ration to the crew, ice and salt. No depreciation, repair, or replacement costs are included in it. If the cost, comes to $85 the remaining $170 will be divided equally, $85 each by the boat owner and fish catcher. Since the boat remains in the water for several days, the “Na Khuda” takes a crew with him, which generally consist of his family members. But if the family members are not available, he may hire crew and pay them from his own share of earning.

The fish catcher brings his catch to the auction hall, where commission agent (called mole holder) authorized by Fishermen Co-operative Society (FCS) awaits the arrival of the catch. Only the authorized commission agent can process the sale and no fisherman can sell his product directly to wholesaler, retailer, consumer, fish processor or exporter.

The commission agent arranges the auction for the catch. Purchasers assess the value of the commodity, make their bids, and the commodity goes to the highest bidder. The fisherman pays 6.25 percent of the gross value of the commodity, which is divided equally by the Fishermen’s Cooperative Society (FCS) and auctioneer.

The fish is passed on from the catcher via the commission agent to the processor/exporter to importer or the local wholesaler, then to retailer, and finally to consumer.

The fish is generally brought to the auction hall/market on the fish harbor where the processor/exporter or wholesaler purchase the catch. Almost all the processing units are located in Karachi. Therefore, the catch meant for processing/export is either purchased at harbor, or is brought to Karachi immediately if purchased at other fish harbors. The purchase made for local sale is bought by wholesaler who delivers it to the retailer in local market which is ultimately sold to consumer. Source: Marine Fisheries Department/SMEDA

52


9. Shipping

The consignments destined to EU, Japan and USA are in fresh or frozen form, whereas to Sri Lanka these are in dried, salted form.

A bulk of seafood exports is carried in 40-foot container which holds an average of 25 tons of seafood. The exporters term the ever-increasing cargo rate as very high as these make their products relatively uncompetitive in far-off international markets.

Being a very busy port, Karachi has the offices and operations of major international shipping lines. The availability of cargo facilities is evidently not a problem. However, the exporters feel inconvenience with cargo rates.

10. Packaging

Packaging is as important as processing. Product has to be packed in food grade, convenient, attractive economical and market oriented packs with proper brand names on it. The broad packing requirements varies from product to product but some of major types of packaging are:

canning,

vacuum bag packing,

shrink wrapping,

jumbo packing.

11. Trade promotion

a) Trade promotion government agencies/departments

Following agencies/departments are actively engaged in trade promotion both on national and international level.

Ministry of Food, Agriculture and LivestockPak Secretariat Block-A, Islamabad, PakistanTel. 51- 9203307, 51- 9210351, Fax 51 - 9221246

Marine Fisheries Department (MFD)Fish Harbor, West Wharf Karachi.Tel. 21- 2312923, Fax 21- 2316539

Mercantile Marine Department (MMD)Principle officer MMD, 70/4, Timber Mart, Kiamari Karachi. Tel. 21-2851306

Maritime Security Agency (MSA)Director General MSA, Maritime Security Building, West Wharf Karachi. Tel. 21- 9214618

53


Export Promotion Bureau (EPB)5th Floor Block A, Finance & Trade Centre, Shahra-e-Faisal Karachi.Tel. 21- 9202718

Small & Medium Enterprise Development Authority (SMEDA)GM Sind, 5th Floor Block A, Finance & Trade Centre, Shahra-e-Faisal Karachi. Tel. 21- 9206491, 9201517Fax 9206477

Karachi Fisheries Harbor Authority (KFHA)Government of Sind, Managing Director KFHA, Fish Harbor, West Wharf Karachi. Tel. 21-2314204

Korangi Fisheries Harbor AuthorityMinistry of Food, Agriculture & Livestock, Government of Pakistan, Managing Director, Korangi fish Harbor, Chashma Goth, Landhi, KarachiTel. 21-5016719

Pasni Fish HarborDirector General Pasni Fish Harbor, Pasni, Balochistan Tel. 0863- 210212

Gawadar Fish HarborDirector General Gawadar Fish Harbor, Gawadar, Balochistan

Fisheries DepartmentGovernment of NWFP, Shami Road, Peshawar

Fisheries DepartmentGovernment of Punjab, 2- Sanda Road Lahore Tel. 42- 7321172

Fisheries DepartmentGovernment of Sind, Block- 50, Pakistan Secretariat, Saddar, Karachi. Tel. 21-9203314

Fisheries DepartmentGovernment of Boalochistan, Pasni. Tel. 0863- 210212 Source: SMEDA

b) Trade promotion activities


National fisheries fairs.



54


c) Fishery related trade industry associations

Different trade associations play an important role in promotion of fishery products in and out of the country. Following is the list of fishery related trade associations:

Fishermen Co-operative Society (FCS)Fish Harbor, West Wharf Karachi.Tel. 21-2310315, 2313139

Pakistan Sea Food Industries AssociationC-6, Fish Harbor, West Wharf Karachi. Tel. 21- 2313601-2

Sind Trawlers Owners & Fishermen Association213, Askary Building, Fish Harbor, West Wharf, Karachi. Tel. 21- 2132644

Karachi Fishing Boat and Trawler Owners GroupMole No. 33, Fish Harbor, West Wharf, Karachi.Tel. 21-201855, 201259

Mole Holder AssociationM. Ismail & Company, Fish Harbor, West Wharf Karachi.Tel. 21- 201776 Source: SMEDA

12. Recommendations for fish and crustaceans sector

The lack of financial resources both with the government and the catchers is main reason of under-utilization of fisheries resources. A great number of boats are not operated just because the catchers do not have enough resources to stay for days in the sea. Furthermore, government and its agencies are lacking funds to explore the sea and to provide updated facilities of fishing technology, preservation, packaging and marketing of fisheries. If a good amount of funds are injected, the industry can grow manifold.

The Pakistan Fish Inspection & Quality Control Amendment (Ordinance), 1998 must be implemented in its true sense. The quality consciousness is needed to be improved among the exporters and processors.

The use of prohibited nets must be checked in order to save the baby fish. If this is done, the population of fish may increase in the long run.

The conversion of traditional technology of catching, storage and processing into the modern one must be expedited. This will cause lesser fish losses and better earnings by all segments of this industry. Funding in this regard must be initiated by the government. Larger investments in this sector may also bring desirable change.

55


The per capita consumption of fish and seafood must be increased through motivation campaigns.

The potential in export of these products must be actualized through intensive marketing and promotion in existing markets and new countries.

Value-addition fisheries products must be given more support and incentives.

B. Edible fruits and nuts

1. Introduction

a) Products covered under the survey

Edible fruits & nuts.

b) Significance of the product to the economy and foreign trade sector of the country:

Fruit export – $ 75.87 m.

Pakistan’s total exports – $ 8,939.80 m.

Percentage share of fruit exports in national exports – 0.85%.


The major objective of the survey is to provide information, which is most likely to be of interest to potential buyers of fruit & nuts, such as technical specification, packaging, export availability, prices and commercial & regulatory conditions.

d) HS codes of fruit items

Code Fruit item

0571100 Oranges fresh or dried0571201 Kino0571202 Malta0571204 Musambi0571209 Mandarines and tangerines ns0572101 Lemon fresh or dried0572200 Grape fruit, fresh or dried0572900 Citrus fruit ns, fresh or dried0573001 Bananas fresh0574000 Apples fresh1575100 Grapes fresh0575201 Raisins, dried0575202 Currants, dried0576002 Figs, dried0577401 Almonds in shell0577402 Almonds without shell

56


Code Fruit item

0577601 Wallnuts in shell0577602 Walnuts without shell0577801 Pistachios in shell0577802 Pistachios without shell0579101 Sweet melons fresh0579102 Water melons fresh0579103 Musk melons, fresh0579201 Pear, fresh0579301 Apricots, fresh0579303 Peaches, fresh0579304 Plums, fresh0579401 Strawberries, fresh0579409 Berries, fresh ns0579601 Dates, fresh0579602 Dates, dried0579701 Mangoes, fresh0579702 Mangoes, dried0579703 Guavas, fresh0579704 Avocados0579801 Pomegranate, fresh0579804 Lichies, fresh0579819 Other fresh fruits ns0579901 Apricot dried0579902 Pine nuts, dried0579904 Plums, dried0579912 Prunes, dried0579929 Other dried fruits ns



a) Range of products and output characteristics

Pakistan has great diversity in its soil. Its ecological and climate conditions too are highly diverse in different areas, ranging from extremely warm to temperate, to very cold. This enables the country to grow many kinds of plants and trees, which yield a large variety of fruits and nuts. Some trees and plants which are native to other parts of Asia or Africa and even Europe and the Americas flourish in Pakistan.

Pakistan is not only one of the top global mango producer but it also grows some of the most delectable and best-known varieties of fruit. Kino (citrus fruit), Sindhri (mango and Chausa mango) from Pakistan have introduced Pakistan to thousands of connoisseurs around the world.Source: PAGE-June 25, 2000

57


Some of the fruits with their important types are:

Citrus - Kino, Mandarin, Red Blood, Musambi; Mango - Langra, Sindhri, Dusehri, Chaunsa, Anwar, Ratol, Begun Pali;

Grapefruit - Marsh seedless Shambler; Lemon - Kagzi lemon; Date palm - Asil, Begum Jungi, Dhaki, Halini Fasli;

Apples - Golden delicious, Red delicious, Mashdi, Amri;

Pomegranate - Behi-dana; Guava - sufaida; Apricots - Char Maghzi; Peaches - Florida King, Early grand; Plums - Santa Rosa, Stanley; Almond - Kaghzi, Besta; Banana

b) Fruit orchards

In addition to commercial scale production, large quantities of fruit are produced in small orchards around rural homes and pathways and consumed locally. The total number of orchards in Pakistan is about 328,400.

Production of fruits fully meets all its indigenous demand and a sizeable quantity is spared to supply to other countries.

Fruits are taken as sub-sector of agriculture industry.

According to Ministry of Food and Agriculture, about 30% of total yield is wasted due to post production care, lack of cold storage facility, and surplus supply vis-à-vis local demand. The internationally accepted ratio of such losses is 10%.

These pre and post harvest losses are the result of absence of plucking and storage facilities, lack of farm to market infrastructure for timely transportation of produce, primitive packing, and an overall lack of technology to preserve the produce for future use or turning them into value added products.Source: PAGE-June 19, 2000

c) Standard trade classification of dates

Five d igit

SITC Dates H.S

05796 Dates, fresh or dries 0804.10

Seven digit classification

SITC Dates

0579601 Dates fresh0579602 Dates dried

SMEDA database

58


d) World's dates production

Thousands of tons

Year 1994 1995 1996 1997 1998 1999 2000

World 4,484 4,809 4,969 4,903 5,324 5,190 5,190Growth % age 7% 3% -1% 9% -3% 0%

SMEDA database

e) Major varieties of dates grown in Pakistan

Province Varieties

Punjab Hillawi, Khudrawi, Zahidi, ShmranSindh Aseel, Fasli, Bhedir, Karbalian, Kupro, MithriNWFP Dhakki, Muzawati, Kango, Gookna, Gulishtan, Basri, Halini and ZahidiBalochistan Begum Jangi, Kaharba, Mozawati, Berni, Halini, Sabzo

SMEDA Database

f) Planting and growth of date palm

Propagation is done by means of suckers, i.e. shoots arising from the base of the tree. To separate the suckers from the tree first the earth is removed from the base and then these are separated very carefully from the trunk in a manner that the rudimentary roots at the base of the sucker are not injured otherwise chances for success will be very low. The suitable age of sucker for transplantation is 2-3 years. Time of transplantation is: February to March (Spring) and September/October (Autumn).

Date palm is a unisexual tree. Pollination in date is therefore absolutely essential. In wild plantation, there are already male trees growing in abundance that can supply pollen for fruit formation. In commercial orchards, plant male trees in the ratio of 1 male to 20 females for better yield, otherwise artificial pollination by hand will be necessary to obtain good production.

Other plantation and growth facts are as follows:

Spacing: trees are spaced as 6 x 6 m or 20 x 20 feet or 112 trees/acre.

Planting: orchards are planted on a square system.

Pruning: no pruning is required except removal of dried and diseased leaves.

Time to start bearing: 4-5 years.

Time to full production: 6-8 years.

Normal economic bearing life: 50 years.

Expected yield: 100-150 kg per tree.

Time of flowering: February to March.

Time of harvest: August to October.

59


g) Date orchards irrigation

Date orchards normally tolerate a longer irrigation interval of 30-40 days. Pakistan has one of the best irrigation systems in the world. Furthermore, rain water is also a major source of irrigation. Thus, irrigation of date orchards is very well managed in Pakistan.

h) Fertilizers and manures Farmers apply farmyard manure (FYM) 15-20 days before flowering in January at the rate of 30-40 kg per tree. At the same time, also 2 kg of Single Super Phosphate (SSP) sand 1-1.5 kg of Urea per tree is also applied. At fruit setting in Mar/Apr., further 1-1.5 kg per tree of Urea is suggested to be applied.

i) Harvesting

The fruit is picked at three stages:

1. Doka stage when the fruit is 50% ripe fruit and yellowish in colour,

2. Dang stage when the fruit is fully developed and the tip of the fruit begins to soften.

3. Pind stage when the fruit is fully ripe and dark reddish and the fruit is soft.

j) Value added products of dates

Following value added date products are manufactured in Pakistan:

dates with almonds,

chocolate coated dates,

date syrups,

dates vinegar,

dates jams,

dates murabba,

seedless dates blocks,

dates mixed with dry fruits,

dates alcohol,

dates animal feed,

table fruit/desert,

dates liquid sugar.

60


k) Citrus growing areas

PunjabDistt. Sargodha, Sahiwal, Lahore, Sialkot, Jhang, Minwali, Multan, Gujranwala.

NWFPMardan, Peshawer, Swat, Swabi, Noshera, Hazzara.

SindSukkur, Khairpur, Nawabshah.

BaluchistanMekran, Sibi and Kech.Source: Telemedpak website

l) Citrus varieties

The main varieties of citrus produced in Pakistan are:

Kino,

Succri,

Mausami,

Washington Navel,

Jaffa,

Red Blood,

Ruby Red,

Mash Seedless,

Duncan,

Shamber.

m) Characteristics of Kino

ProductCitrus fruit are native to Southeast Asia and are cultivated in warm climate. The Kino, a member of the citrus fruit family, was developed through a lengthy hybridization process. The Kino is indigenous to Pakistan, the largest grower of Kino in the world.

AttributesKino has the following features, which differentiates it from other Citrus varieties.

Easy Peel: The rind containing numerous oil glands, comes off easily with bare hands since it is loosley bound compared to other types of citrus fruit. Therefore, the Kino can be just peeled off and enjoyed anywhere, anytime.

High Juice Content and Rich Flavour: Kino consist of several easily separated sections and high juice content. Its full-bodied flavor and its juice content combine to make a most satisfying and healthy fruit.

61


Vitamin C: One Kino provides sufficient Vitamin C to fulfill your need for a day. It is the ideal health choice.

Use of Pulp: Use the pulp to make delicious desserts, jams and sauces.

Skin: The skin can be used to make cosmetics and essence.

n) Nutritional value comparison in citrus

NutrientsOranges(% RDA)

Mandarin/Kino(% RDA)

Vitamin A 2% 3%Vitamin C 130% 130%Calcium 6% 4%Phosphorous 2% 3%Iron 2% 4%

Source: Telemedpak website/Recommended Daily Allowances, 10th Edition FPB Publication

o) Production characteristics of citrus fruit

Today, Pakistan stands among the top ten citrus growing countries in the world. Kino is grown primarily in the plains of Punjab province of Pakistan. The Kino season in Pakistan lasts from December to March with the peak occurring in mid January. Pakistan’s production capacity is 1.28 m tons per season. In Pakistan Kino is grown under totally natural conditions to enhance the original flavor of the fruit and to preserve its fundamental goodness.

Pesticide usage is low and only natural fertilizer is used during cultivation. The fruit is sun ripened on the trees and carefully hand picked at precisely the right time of ripeness.

p) Use of mango

Mango is a delicious fruit grown in about ninety tropical and sub-tropical countries in the world. The fruit is mostly eaten fresh as a dessert. It is also processed into preserves, juices, jams, jellies, nectars as well as crisp mango chips, which are eaten as snacks. Mango is an excellent source of vitamin A, B and C and contains water proteins, sugar, fats, fibers and iron, etc.

Varieties of mango: Pakistan produces more than 250 varieties of mangoes. The important ones are Langra, Chausa, Sindhry, Bihishti, Samar, Malda, Anwarritol, Fajri Kalan, Zafran and Fazli, etc.

q) Cultivation

Mango is cultivated around February/early March, when the cold weather begins to subside and the danger of destruction through frost disappears. It comes in market early in the May and remains in market till August/September.

62



a) The land and cultivation

Total land areas Total land area (Mha) Total cropped areas (Mha) %

Punjab 20.60 11.04 (55.70 %)Sindh 14.10 05.45 (27.50 %)NWFP 10.20 01.93 (09.73 %)Balochistan 34.70 01.40 (07.06 %)Pakistan 79.60 19.82 (07.06 %)

Source: PAGE website article, Apr-02

Of this cropped area, only 25 per cent is under cultivation, 4.5 per cent under forest, about 57 per cent is range land. The irrigated land is 75 per cent (15.2 mha. of the total cropped area), 19 per cent (or nearly 4.25 mha.) is rain-fed, while the other 4 per cent is irrigated by tube-well and other sources.

Out of the total area under fruits, 35% is under citrus of which 56% is under kino.

b) Production of fruit in Pakistan

Figures in 000 tons

Year 1995-96 1996-97 1997-98 1998-99 1999-005-year


Source: Agricultural Statistics of Pakistan 1999-00

c) Commodity-wise production figure (important fruits)

000 tons

1996-97 1997-98 1998-99 1999-00 2000-01

Citrus fruit 2002.6 2037 1961.5 1943.2 1898Mango 914.5 916.8 916.4 937.7 990Banana 83.2 93.6 94.6 125.2 139Apple 6.5 573.1 9.3 377.3 439Guava 447.7 454.9 468.3 494.5 526Apricot 188.1 189 190.8 120.5 126Peach 45.8 46.5 48.3 33 n/aPears 35.2 35.6 37.5 37.7 n/aPlums 77.3 78.4 80.7 59 n/aGrapes 74.1 74.3 75.8 40.3 51Pomegranate 103.9 104.2 106.1 69 n/aDates 534.4 537.5 721.6 579.9 n/aAlmonds 49 49.1 50 32.3 33

n/a not availableSource: Economic Survey of Pakistan-2001-02

63


d) Major constraints to obtain fuller capacity

The production of fruits is constrained by several factors. Some of these are listed below:

Difficult in obtaining the plants of the desired variety and of sound health when plans to put up an orchard is executed.

Lack of appropriate facilities for harvest and post-harvest management.

A huge investment is required to set up a fruit farm, thus a limited number of farmers can arrange large orchards.

High percentage of post-harvest losses.

Inadequate storage facilities and outdated methods used in processing/packaging.

Inadequate market information and difficulties in marketing.

Difficulties in obtaining suitable land for expansion and in obtaining financial assistance.

Lack of irrigation facilities.

Non -availability of cold storage facilities to store perishables prior to shipment.

Insufficient air cargo space.

Lack of infrastructure to support technology development, education and training.Source: PAGE website article, Apr-02

The production capacity may be increased significantly through increase through plant protection and orchard area expansion as did Mexico and China.Source: IR

The average per hectare yield of Mango is only 9100 kgs which is much lower as compared to the countries like India, Mexico and China. Capacity of production may be increased if research is conducted and right implementation is done in this area.Source: Economic Survey of Pakistan 1999-00

e) World's top ten date producers

Thousands of tons

Year 1996 1997 1998 1999 2000

Iran 855 877 918 908 930Egypt 738 741 840 906 890Saudi Arabia 617 649 648 712 712Pakistan 534 537 722 580 580Algeria 361 303 387 428 430Iraq 797 625 630 438 400UAE 245 288 290 305 318Sudan 168 174 175 176 176Oman 134 135 135 135 135Libya 125 128 130 132 133

Source: SMEDA database

64


f) Yield comparison of world's top ten date producers

Yield (Kg/Ha) 1996 1997 1998 1999 2000

World average 5,669 5,459 5,934 5,493 5,511 Iran 5,150 4,559 5,190 5,124 5,167Egypt 27,042 26,459 25,449 25,884 25,807Saudi Arabia 6,117 6,117 6,087 5,045 5,045Pakistan 7,168 7,157 9,558 7,630 7,630Algeria 3,735 3,139 3,953 4,271 4,300Iraq 4,531 4,006 4,375 3,021 2,963United Arab Emi. 9,306 9,667 9,615 9,487 9,263Sudan 7,891 7,789 4,908 5,083 5,129Oman 5,208 5,124 5,000 5,038 5,000Libya 4,542 4,500 4,500 4,500 4,500


g) Pests and diseases In many countries, palm tree has two major diseases:

Borer: Borers enter into the trunk of the tree and make tunnels. The tree appears green but gradually it bends over and breaks.

Scales: All the recommended varieties are attacked by this insect. It sucks the sap from the leaves and small brown spots appear on the leaves.

There are no major diseases of date palm observed in Pakistan.

h) Pakistan's date production

1996 1997 1998 1999 2000

Production 534 537 722 580 580Area 74,559 75,100 75,500 76,000 76,000Yield per hectare 7,168 7,157 9,558 7,630 7,630Production growth 0% 1% 34% -20% 0%

Production in thousands of tonsArea in thousands of hectaresYield Kg. per hectare

i) Areas of production

Province District/Area

Punjab Distt. Jhang, Multan, Muzzaffargarh & D.G. KhanSindh Sukkhur & KhairpurBalochistan Turbat & PanjgurNWFP D.I. Khan.

65


j) Production volume of citrus

000 tons

1996-97 1997-98 1998-99 1999-00 2000-01

Citrus fruit 2002.6 2037 1861.5 1943.2 1898Source: Agricultural statistics of Pakistan 1999-00/Economic Survey of Pakistan

Export season: Kino export season commence from end of November.

k) Factors affecting the yield

There are several problems, which affect the citrus production potential. The major problems are: (a) un-fruitfulness, (b) alternate bearing, (c) flowers and fruits dropping, (d) insect, pest and diseases. Sometimes citrus cultivars do not produce a commercial crop for a year. This situation may be attributed to genetic or physiological causes like incompatibility, hetero-style and ovule abortion, physiological causes involve hormonal or nutritional imbalances, which result in general weakness or excessive vegetative growth, preventing the trees from blooming and bearing fruit.

The most serious problem in citrus production is alternative bearing in citrus tree, which considerably reduces citrus yield. Alternate bearing in citrus trees is a habit of fruiting heavily in one year called the “on-year” and very little or not at all in the second year called the “off-year”. This characteristic is manifested in several citrus cultivars like the mandarins and Kino. Various research workers looking at the behavior of citrus trees during “on” and “off” years from different perspectives such as, morphology, physiology, nutrition and plant protection have studied this problem. A lot of useful work has been accomplished in this direction but no foolproof remedy for this disorder has been recommended for any scientists.

It is reported that on average a tree of the sweet orange in Punjab bears around 50,000 flowers in a season. It is evident that not all of them can mature to fruit. In weak trees, about 95 per cent flowers drop and only 5 per cent fruit. Sometimes over 99 per cent of flowers drop. Such flower drop is relatively less in healthy and leafy trees.

Weather conditions like hot and dry climate during blooming or heavy rains accompanied by windstorms also play a major role in heavy flower drop.

Majority (68 per cent) of growers does not know the actual number of sprays, time of spray and cost involved controlling the insect, pests and diseases. This ignorance causes deficient yield of citrus, in terms of both quantities of fruit and quality. The average cost per hectare for spray ranges from $10 to $58 per hectare.

66


l) World mango production year-1999

CountryExports

(in million tons)Percentage share

World 23.80Brazil 0.60 2.5China 2.1 8.9Egypt 0.23 0.9India 12 50.4Indonesia 0.60 2.5Mexico 1.5 6.0Pakistan 0.91 3.8Philippines 0.93 3.9Thailand 1.25 5.2

Source: FAO/UN, PAGE July 25, 2001

m) Pakistan’s mango production

000 tons

1996-97 1997-98 1998-99 1999-00 2000-01

Mango production 914.5 916.8 916.4 937.7 990Source: Agricultural Statistics of Pakistan1999-00/Economic Survey of Pakistan, 2001-02

n) Future prospects - Launch of a mega mango processing project

Ministry of Science & Technology launched a project in March, 2002 for the production of dried slices of mango and other fruits. The processed fruits will be consumed locally and exported to other countries. Foreign exchange earnings of at least US $ 600,000 are expected in the first year of commercial production.

The project will be executed by H.E.J. Research Institute of Chemistry, University of Karachi, Pakistan in collaboration with All Seasons Fruits (Pvt) Limited, Karachi and ZOAS Pure Foods (Pvt) Limited, South Africa. It will be completed in a period of two years (i.e. by March 2004). An amount of $0.63 million will be spent on the project.

The project aims to add value to the natural resources of Pakistan by converting the fruits into high value products, which are in great demand internationally. The production will be carried out mainly on locally fabricated equipment by using already developed and proven technology.

Foreign exchange earnings of at least US$ 600,000 are expected from the first year of commercial production (3rd year onward). This will increase dramatically as production scale increases and new products are introduced including apricot, mulberry, peach and berries. Presently the earnings have been projected only for the export of mangoes.Press release of Ministry of Science & Tech – March 15, 2002

67


o) Factors affecting the yield of mango

A number of factors are responsible for the low yield including high water table and salinity, inadequate and unbalanced fertilization and lacs of plant protection measures. The widespread problem of water logging and salinity is a major threat to mango cultivation and the province of Sindh is the worst affected. For successful cultivation of mango orchards, the water table must be maintained at 3 meters from the ground surface. The mango yield considerably decreases, when water table comes to the level of 1.5 meters. The desired level could be achieved by the provision of a suitable drainage system.

Mango fruit is rich in vitamins, A, B and C, and contains water, protein, sugar, fats, calcium, phosphorus, fiber and iron. Mangoes according to latest scientific research as well as of folk wisdom are known to increase the body resistance against dysentery, cholera and tuberculosis. It is said “an apple a day keeps the doctor away”, this is equally to of the mango. According to our local tradition, raw mango seasoned with a pinch of salt quenches thirst and loss of iron in the body, which occurs due to excessive sweating during the sultry summer.

Although Pakistan produces 10 lacs tons per year, but in export, Pakistan is quite far behind with other countries. Uptil 1950s, mango cultivation was rather scanty and a lot of commodity used to come from India, through travelers. However, in the beginning of 60s, some landlords brought strains from India and grafted them in Pakistan. Over due course of time, Pakistan over took India in mango cultivation and right now produces varieties which cater not only to the domestic market, but overseas too. The chief market of Pakistan, mangoes are the Middle Eastern countries. Pakistan also exports these mangoes to other countries like Singapore, Norway, Germany, France, Japan and South Korea.

However, since some years, unfortunately the export of this fruit is facing a tough competition from other Asian countries mainly India. Latin American countries like Brazil having now also come into the field and Pakistan near monopoly is now being challenged. There could be many reasons for this showing down of exports. One of these reasons is the traditional manner of crop production and halfhearted efforts at research. Moreover, we should never forget that the buyers in the world market are not just interested in prices. They also want good presentation. We have to constantly watch for trends, choices and preferences of the buyers in the world markets.

Another thing, the processing should be made with the latest machines and packing should not only be fancy and eye catching but durable. It should ensure that the fruit would not rot in transit and that the quality would not diminish in the process. According to the study conducted by International Trade Centre in Geneva, Switzerland about 30 % of the food export of all over developing countries, one of which Pakistan is the one, perishes, before it reaches to the foreign market. This is because of the defective packing. Therefore, we have to improve it by all means to get more foreign exchange from other countries by exporting the good quality of mangoes.

68


It is estimated that well over 40% of mangoes never reach markets due pre and post harvest losses. A further 30-35% of mangoes that eventually reach markets never get sold at a good price due to being sub-standard or due to blemishes or size. This means that these fruits are of no use to the dealers and consumers. Finally due to lack of a cold chain from the farm to the market place the actual fruit that gets sold in the market has a short shelf life and does not yield the best prices due to the relatively short season and large influx of fresh fruits. Internationally accepted ratio of pre and post harvest loss is 10%.

The point of concern is that the yield per hectare, 10 tons on the average, is not increasing. This yield is about one-third, when compared to other mango growing countries.

4. Raw materials

a) Procurement of baby plants

There are many commercial nurseries, mostly privately owned by people associated with farming in the study area. Size of nurseries varies, ranging from a few plants to a few hectares. Survey results show that 87 per cent of citrus growers purchase citrus plants from commercial nurseries and 13 per cent manage their own nurseries.

The Punjab province remains the main centre for supplying citrus fruits of high quality and grade. About four varieties are commonly grown in that province, and placed into three groups as, early, mid and late season. Area under different varieties indicates that about 86 per cent of the citrus area is covered by Kino variety followed by the musambi 10 per cent, feutral 4 per cent and blood red 1 per cent respectively.

b) Manure

To keep plants healthy, it is necessary to assess nutritional requirements of plants. Level of fertility of the soil in which they are being grown also need to be maintained. Growers regularly use manure in orchards for that purpose. The use of manure varies with the age of plant. Young citrus trees (4 years) need less manure as compared to the mature trees (10 years). The main reason reported by respondents is that the roots of the mature plant are widely spread around the main trunk, therefore, these trees need more nutrients from the soil. Another reason reported is that in mature citrus orchards growers do not practice any inter-cropping and thus do not use any fertilizer in orchards.

c) Fertilizer

Citrus orchards are seldom profitable without annual fertilization. Like other plants, citrus needs 16 essential elements for satisfactory growth. Hydrogen, oxygen, and carbon are available from water and air, while the others 13 are mainly absorbed by the roots from the soil. Among the major elements absorbed from the soil are nitrogen, phosphorus, potassium' magnesium and calcium, N. P. and K are repeatedly applied in the form of fertilizer, while the rest are taken up from the soil resources.

69


It was found that majority (63 per cent) of the producers applied fertilizer in orchards. Whereas, in the early stage, when growers practice intercropping, they apply 2.5 bags of DAP and 5 bags of urea/ha. In contrast, when orchards become mature and growers stop intercropping, growers reduce above fertilizer and add other fertilizers in citrus orchards. It was found that they applied 1.5 bags of DAP and 2 bags of urea, 3 bags of NPK, 1.5 bags of nitrophas, 2 bags of SOP, 5 bags of ammonium sulphate and, 4 bags of ammonium nitrate/ha. It was found that growers did not apply potash in citrus orchards although the potash requirement for citrus is higher than for any other essential nutrients. Zinc deficiency has also been observed in the plants and can be rectified by soil application of 0.4 percent Zn So, before the flowering and fruit formation stage.

5. Other production inputs

a) Irrigation system of Pakistan

Pakistan is known for its excellent network of canals and rich agricultural lands, with three major reservoirs — Tarbela, Mangla and Chashma, 23 barrages, 12 huge interlink canals, about 63,800 kilometers canal's length, 106 kilometers water courses and 107,000 no. of channels spreading all over the country. Furthermore, 565,000 tubewells are also installed in the country, which in case of decreased capacity of reservoirs and consistently low rains for sometime have become a vital component of the country’s agriculture. However, long standing draught and decrease in the water level in rivers and reservoirs is affecting the production negatively. Source: PAGE website article, Apr-02

b) Planting methods

Citrus varieties can be propagated by both sexual and asexual methods. Generally, rootstocks are propagated through seeds and most commercial varieties are propagated by various asexual methods.

c) Irrigation

Citrus trees are ever green and need appropriate irrigation all year round. Successful citrus culture thus requires a permanent source of water. Over-irrigation is generally more harmful for citrus fruits than under-irrigation. The frequency and amount of irrigation depend upon climatic conditions, soil type, kind and age of trees, number of trees per hectare and rootstock used.

Citrus orchards are given restricted watering during winter with one heavy doze, which is about two weeks before blooming. This stimulates fruit bud differentiation and results in heavy bloom. Producers in the study area irrigate the orchards once a week in summer and after every 15 to 20 days in winter. Moreover, source of irrigation of the selected growers was examined and found that 8 percent of the citrus growers used canal irrigation and 2 percent used tube well water and remaining 90 per cent applied both canal and tube well irrigation for the citrus orchards.

Pakistan manages one of the best irrigation systems of the world.

70



a) Quality standards and specifications used by the industry

Most of the importing countries have issued their own quality standards to Pakistan’s fruit exporters. The exporters have to follow these standards in order to acquire approval of their consignments from the importers.

As far as the growers are concerned, they are not well quality conscious, as they are highly contented upon natural conditions. However, as the know-how is increasing, some of the growers are now having proper quality management programs. A few growers have the availability of cold storage facility near the farm.

Very few fruit processors have adopted scientific and technological methods for selection, grading, processing and packing of fruits. Traditional manual methods are common.

Japan and Philippines restricted a conditional ban on the import of citrus fruit from Pakistan in November 2001. It was due to the presence of fruit fly here. The treatment required by the Japanese government for the elimination of fruit fly is VHT and cold treatment.

Nowadays waxing of citrus fruits and bananas has become common throughout the world. At least eight methods of applying wax have been developed to obtain the desired results. Waxing is recommended only for good quality products because it does not improve the quality of inferior ones. Sometimes it increases decay and deterioration resulting from defects, injury and disease of the fruit. The process of this type of vaxing is very rare in Pakistan.

b) Quality control facilities

A great lack of cold storage facilities claims damage to quality and heavy post-production losses. There are about 470 cold storages (1998) in the country with collective storage capacity of 707m Kg. This lacking facility is needed to be multiplied to ensure fuller produce and better quality maintenance.

There’s a severe shortage of quality control facilities on all the stages i.e. orchards, processors, exporters, airports and in-land transportation companies.

Vaporizing treatment to sterilize fruits is a requirement of Japanese Quarantine Law. Japan has provided a treatment plant to Pakistan, which have been installed. But due to financial constraints, the plant has not yet been commenced.

71



a) Research & development

Most of the fruit sector is based upon traditional picking, grading, packing, storage and preservation technology. Whereas, the exporters have some sources to conform to the international standards but these are still inadequate. General growers have lesser know-how and approach to the latest technology. Being an agriculture-based country, there are a considerable number of agricultural research centers throughout the country. Although these centers have made extensive research on fruits but lack of coordination between growers and the research centers is lesser benefits from the research work.

Some important agricultural research & educational institutes are as under:

Shujabad Mango Research Station.

Date research Centre, Turbat.

Regional Agricultural Research Institute, Bahawalpur.

Arid Zone Research Institute, Bahawalpur.

Arid Zone Research Institute, NWFP, D.I. Khan.

Agriculture Research Institute, D.I.Khan.

Ayub Agricultural Research Institute, Faisalabad.

Plant Protection Institute, Directorate of Plant Protection Institute, Faisalabad.

Postgraduate Agricultural Research Station, University of Agriculture, Faisalabad.

Agronomic Research Institutes, Ayub Agricultural Research Instituts, Jhang Road, Faisalabad.

National Agriculture Research Centre, Islamabad.

Pakistan Agricultural Research Council, Islamabad.

Agricultural Mechanization Research Institute (AMRI), Multan.

Agricultural Research Institute, Quetta.

Arid Zone Research Centre, Quetta.

Arid Zone Research Institute Sindh, Umerkot.

Post Harvest Research Center, Faisalabad.

Food Science Section of the HEJ Research Institute of Chemistry.

72


8. Domestic demand

a) Domestic demand v export

Pakistan has enormous resources of fruit production. The Production of fruits fully meets all its indigenous demand and some quantity is spared to supply to other countries. Instead of having a sizeable surplus fruit production, only about 4.25% of total production is exported. This is because of lack of facilities, unawareness of the growers with the export procedures and very high pre and post yield losses. These losses are 30-40% which is quite alarming in comparison with 10% average of the world.

9. Exports

a) Export value of fruit

Figures in 000

Code Fruit item2000-01 1999-00

USD% of total

fruit exportUSD


0571100 Oranges fresh or dried 179.98 0% 362.16 1%0571201 Kino 15,760.30 21% 11,949.78 17%0571202 Malta 24.46 0% 4.31 0%0571204 Musambi 25.32 0% 13.18 0%0571209 Mandarines and tangerines ns 2.02 0% 51.82 0%0572101 Lemon fresh or dried 18.47 0% 10.00 0%0572200 Grape fruit, fresh or dried - 0% 0.32 0%0572900 Citrus fruit ns, fresh or dried - 0% 5.07 0%0573001 Bananas fresh 79.24 0% 135.16 0%0574000 Apples fresh 431.23 1% 1,097.71 2%1575100 Grapes fresh 20.68 0% 5.26 0%0575201 Raisins, dried 1,669.50 2% 231.11 0%0575202 Currants, dried 154.20 0% - 0%0576002 Figs, dried 61.63 0% 11.77 0%0577401 Almonds in shell 78.81 0% 97.10 0%0577402 Almonds without shell 19.98 0% 47.33 0%0577601 Wallnuts in shell 138.72 0% 106.10 0%0577602 Walnuts without shell 23.25 0% 25.09 0%0577801 Pistachios in shell 69.52 0% 11.13 0%0577802 Pistachios without shell - 0% 3.83 0%0579101 Sweet melons fresh 1.36 0% 8.46 0%0579102 Water melons fresh 5.64 0% 103.00 0%

73


0579103 Musk melons, fresh - 0% 0.22 0%0579201 Pear, fresh 41.18 0% 100.53 0%0579301 Apricots, fresh 16.05 0% 65.22 0%0579303 Peaches, fresh 0.53 0% 0.03 0%0579304 Plums, fresh 1.04 0% 5.39 0%0579401 Strawberries, fresh - 0% 2.07 0%0579409 Berries, fresh ns 8.97 0% - 0%0579601 Dates, fresh 2,397.08 3% 2,841.34 4%0579602 Dates, dried 22,707.23 30% 17,722.80 26%0579701 Mangoes, fresh 16,431.92 22% 9,951.96 15%0579702 Mangoes, dried 11.48 0% 18.31 0%0579703 Guavas, fresh 1.87 0% 5.87 0%0579704 Avocados 0.41 0% - 0%0579801 Pomegranate, fresh 77.15 0% 125.07 0%0579804 Lichies, fresh 1.99 0% 3.40 0%0579819 Other fresh fruits ns 5,783.10 8% 6,775.09 10%0579901 Apricot dried 560.53 1% 424.28 1%0579902 Pine nuts, dried 7,876.05 10% 14,845.37 22%0579904 Plums, dried 40.63 0% 223.48 0%0579912 Prunes, dried 35.89 0% 111.48 0%0579929 Other dried fruits ns 1,114.00 1% 980.25 1%

Total 75,871.43 100% 68,481.87 100%

b) Fruit export value

Million USD

Year 2000-01 1999-00 1998-99 1997-98 1996-97

Export value 76 68 46 46 46Source: Foreign trade statistics of Pakistan 2000-01

c) Fruit export volume

000 tons

Year 2000-01 1999-00 1998-99 1997-98 1996-97

Export volume 260 240 181 202 219Source: Foreign Trade Statistics of Pakistan 2000-01/Economic Survey of Pakistan, 2001-02

74


d) Major fruit export items by value

Figures in 000 USD


USD% of total fruit

exportUSD


0571201 Kino 15,760.30 21% 11,949.78 17%0579602 Dates, dried 22,707.23 30% 17,722.80 26%0579701 Mangoes, fresh 16,431.92 22% 9,951.96 15%0579902 Pine nuts, dried 7,876.05 10% 14,845.37 22%

Total 62775.5 83% 54469.91 80%Others 13095.93 17% 14011.96 20%

e) Major trading partners

Followings are major export markets (in 2000-01) for fruits of Pakistan. The order of countries within the lists is as per their relative share:

Code Commodity Major market (share-wise order)

0579601 Dates, fresh

IndiaNepalCanadaGermany

0579602 Dates, dried

IndiaUSANepalUnited KingdomCanada

0579701 Mangoes, fresh

DubaiUnited KingdomSaudi ArabiaOmanQatarKuwaitFranceGermany

0571201 Kino

IndonesiaDubaiPhilippinesMalaysiaSri LankaSaudi ArabiaSingaporeAfghanistanHong KongNetherlands

75


Code Commodity Major market (share-wise order)

0579902 Pine nuts, dried

DubaiGermanySaudi ArabiaHong KongIndiaKuwaitEgypt

f) Export prices fruit

Code Commodity Price (USD/Kg.) 2000-01

0571100 Oranges fresh or dried 0.170571201 Kino 0.160571202 Malta 0.200571204 Musambi 0.100571209 Mandarines and tangerines ns 0.100572101 Lemon fresh or dried 0.510572200 Grape fruit, fresh or dried -0572900 Citrus fruit ns, fresh or dried -0573001 Bananas fresh 0.060574000 Apples fresh 0.291575100 Grapes fresh 0.570575201 Raisins, dried 0.920575202 Currants, dried 1.340576002 Figs, dried 1.200577401 Almonds in shell 1.550577402 Almonds without shell 2.720577601 Walnuts in shell 1.060577602 Walnuts without shell 2.330577801 Pistachios in shell 2.650577802 Pistachios without shell -0579101 Sweet melons fresh 0.270579102 Water melons fresh 0.050579103 Musk melons, fresh -0579201 Pear, fresh 0.310579301 Apricots, fresh 0.260579303 Peaches, fresh 0.440579304 Plums, fresh 0.520579401 Strawberries, fresh -0579409 Berries, fresh ns 0.450579601 Dates, fresh 0.360579602 Dates, dried 0.310579701 Mangoes, fresh 0.310579702 Mangoes, dried 1.090579703 Guavas, fresh 0.18

76


Code Commodity Price (USD/Kg.) 2000-01

0579704 Avocados 0.300579801 Pomegranate, fresh 0.470579804 Lichies, fresh 0.850579819 Other fresh fruits ns 0.310579901 Apricot dried 1.140579902 Pine nuts, dried 4.440579904 Plums, dried 1.050579912 Prunes, dried 1.070579929 Other dried fruits ns 1.03

Foreign Trade Statistics of Pakistan 2000-01

While Middle East is the major market of Kino, in terms of quantity, the best prices of citrus fruit come from the smaller markets of Holland and Sweden. For instance, the average price of Kino in Holland was 54 cents per kg in 1999-00 – three times the average (Source: PAGE December 3-9, 2001)

g) Province-wise production of dates

Thousand tons

Province 1996 1997 1998 1999 2000

Punjab 92 94 95 90 90Sindh 32 34 215 245 245NWFP 6 6 7 7 7Balochistan 404 403 404 239 239


h) World's exports of dates

Million $US

Year 1994 1995 1996 1997 1998

Value 149 230 215 175 214Growth % age 55% -7% -19% 23%

Thousands of tones

Year 1994 1995 1996 1997 1998

Quantity 118 140 158 166 168Growth % age 19% 13% 5% 1%

US$ per Kg

Year 1994 1995 1996 1997 1998

Unit price 1.26 1.64 1.36 1.05 1.28Source: SMEDA database

77


i) World's major exporters of dates

US$ in million

Year 1994 1995 1996 1997 1998

Tunisia 55 62 48 47 62Algeria 12 79 66 22 49Saudi Arabia 13 22 21 27 31Pakistan 16 16 25 27 22France 18 19 21 20 19USA 16 15 15 11 11Israel 0 0 2 4 7Netherlands 2 2 3 2 3Oman 4 3 2 3 2Germany 1 1 2 2 2


j) World's major exporters of dates (1998)

Countries Value Quantity Unit price

Tunisia 62 27.3 2.26Algeria 49 20.5 2.38Saudi Arabia 31 49.4 0.63Pakistan 22 48.6 0.45France 19 7.5 2.52USA 11 3.6 3.02Israel 7 1.3 5.52Netherlands 3 0.6 4.09Germany 2 0.9 2.70Oman 2 3.7 0.57Others 6 4.3 1.51

Value in US$ million – Quantity in thousands of tones – Unit US$ per Kg

k) Pakistan's exports of dates

Million $US

Year 1995-96 1996-97 1997-98 1998-99 1999-00Value 16.0 24.7 27.2 21.7 24.0Growth % age 2% 54% 10% -20% 10%

Thousands of tones

Year 1995-96 1996-97 1997-98 1998-99 1999-00

Quantity 35 61 66 49 64Growth % age -25% 77% 8% -26% 32%

78


US$ per Kg

Year 1995-96 1996-97 1997-98 1998-99 1999-00

Unit price 0.46 0.41 0.41 0.45 0.37

l) Pakistan's exports of dates (category-wise)

Million $US

Year 1995-96 1996-97 1997-98 1998-99 1999-2000

Dates, fresh 2.3 3.5 4.6 3.9 3.3Dates, dried 13.7 21.2 22.5 17.9 20.7

m) Pakistan's exports of fresh dates

Year 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000

Value 2.1 2.3 3.5 4.6 3.9 3.3Quantity 4.8 4.1 7.5 10.2 6.7 6.7Growth % age 10% 54% 31% -16% -15%Unit Price 0.4 0.6 0.5 0.5 0.6 0.5

Value in US$ in millions – Quantity in thousands of tons – Unit US$ per Kg

n) Pakistan’s major trading partners in export of fresh date

Thousand $USD

Year 1995-96 1996-97 1997-98 1998-99 1999-2000

USA 673 564 848 1,849 1,186Canada 361 671 465 590 594India 629 1,304 1,899 736 565UK 159 134 706 166 231Denmark 71 46 118 196 170Germany 256 219 92 217 163Bangladesh 18 66 45 28 128Dubai 16 200 32 4 64

79


o) Major buyers and export price-1999-00 (fresh date)

Countries Value Quantity Unit Price

USA 1,186 2,080 0.57Canada 594 891 0.67India 565 1,653 0.34UK 231 461 0.50Denmark 170 376 0.45Germany 163 314 0.52Bangladesh 128 372 0.34Dubai 64 36 1.78Others 210 489 0.43

Value in US$ in thousandsQuantity in tonsPrice in $US/kg

p) Pakistan's exports of dried dates SITC – 0579602

Year 1995-96 1996-97 1997-98 1998-99 1999-2000

Value 13.7 21.2 22.5 17.9 20.7Quantity 30.4 53.4 55.5 41.9 57.5Growth % age 1% 54% 6% -21% 16%Unit Price 0.5 0.4 0.4 0.40 0.36

Value in US$ in millionsQuantity in thousands of tonsUnit US$ per Kg.Source: SMEDA database/Foreign Trade Statistics of Pakistan 2000-01

q) Pakistan's major trading partners dried dates SITC – 0579602

000 $US

Year 1995-96 1996-97 1997-98 1998-99 1999-2000

India 10,893 18,553 19,535 15,151 18,604USA 1,451 838 926 1,436 933Bangladesh 66 205 210 92 217UK 265 152 463 183 168Nepal 26 70 21 97 161Australia 40 129 164 79 77Germany 233 247 205 44 57Kenya 0 47 28 30 50

80


r) Major buyers and export price (dried dates SITC – 0579602) 1999-00

Countries Value Quantity Unit Price

India 18,604 53,291 0.35USA 933 1,763 0.53Bangladesh 217 580 0.37UK 168 326 0.52Nepal 161 453 0.36Australia 77 103 0.75Germany 57 137 0.41Kenya 50 148 0.34Others 390 745.3 0.52

Value in US$ in thousandsQuantity in tonsUnit US$ per Kg

s) Export of citrus

000 $US

Code Commodity 2000-01 1999-00

0571100 Oranges fresh or dried 179.98 362.160571201 Kino 15,760.30 11,949.780571202 Malta 24.46 4.310571204 Musambi 25.32 13.180571209 Mandarines and tangerines ns 2.02 51.820572101 Lemon fresh or dried 18.47 10.000572200 Grape fruit, fresh or dried - 0.320572900 Citrus fruit ns, fresh or dried - 5.07

Source: foreign Trade Statistics of Pakistan, 2000-01

t) Export prices of citrus

The export prices for the citrus fruit of Pakistan in 2000-01 remained as under:

0571100 Oranges fresh or dried 0.170571201 Kino 0.160571202 Malta 0.200571204 Musambi 0.100571209 Mandarines and tangerines ns 0.100572101 Lemon fresh or dried 0.510572200 Grape fruit, fresh or dried -0572900 Citrus fruit ns, fresh or dried -

Source: foreign Trade Statistics of Pakistan, 2000-01

81


u) Export markets for citrus

In 2000-01, following countries remained the major markets for Kino (list is ordered as per share): Indonesia, Dubai, Philippines, Malaysia, Sri Lanka, Saudi Arabia, Singapore, Afghanistan, Hong Kong and Netherlands.Source: foreign Trade Statistics of Pakistan, 2000-01

The bulk of the top graded and more expensive Kino fruit is exported to Indonesia, Singapore, Saudi Arabia, United Kingdom and Holland. Dubai is market for un-graded and comparatively lower-priced Kino. Dubai serves as distribution point to other gulf states like Qatar, Kuwait, and Bahrain, etc. Dubai plays an important role in absorbing any and all Kino surplus despite the fact that here Kino prices remain less than one-fourth of that in the markets in the Far East.

v) World mango exports – Year-1999

CountryProduction

(in thousand tons)Brazil 39.2France 9.0Guatemala 10.2Hati 7.1Holland 17.1India 26.7Mexico 209.4Pakistan 40.2Pero 10.5Philippines 52.5Worldwide 509.8

w) Pakistan’s mango export

000 dollars

Code Fruit2000-01 1999-00

USD% of total fruit

exportUSD


0579701 Mangoes, fresh 16,431.92 22% 9,951.96 15%0579702 Mangoes, dried 11.48 0% 18.31 0%


x) Mango export prices

The average export process for mango in 2000-01 are:

USD/Kg0579701 Mangoes, fresh 0.310579702 Mangoes, dried 1.09


82


Major markets for mango: The major export markets of Pakistani mango are (the list is ordered as per relative share): Dubai, United Kingdom, Saudi Arabia, Oman, Qatar, Kuwait, France and Germany.Source: Foreign Trade Statistics of Pakistan – 2000-01


a) Export incentives provided by the government

Government of Pakistan highly encourages the export of fruits. The stress is upon value added products. In order to encourage exports, following incentives are provided to the exporters:

Import of machinery being installed in export oriented processing units in duty free.

In order to assist the processing units to fulfil the quality requirements of importers, the government provides a subsidy of about $2500 for ISO-9000 certification. It covers almost 25% of total cost incurred upon the certification process.

Source: Pakistan Almanac 2000-01

11. Export channels

a) Marketing/export channels

Following channels are generally employed for international market:

Grower Pre-harvest Contractor Fruit Market/intermediary Exporter Importeror

Grower Fruit Market/intermediary Exporter Importeror

Grower Exporter Importer

As the growers are having lack of knowledge about export procedures and are incompetent to export directly, a negligible export is done directly by them.

Major exports are done by trading companies who procure fruit from open market or in some cases, from growers.

b) Exporters of date & date products

BARODA CORPORATIONNP.11/21,Daryana Street, Jodia Bazar, P.O.Box #6551Karachi(92-21) 746289-746269-746308-746373

CANAMPAK DATE INDUSTRY (PVT) LTD.204/205,2nd Floor, Chapal Plaza, Hasrat Mohani Road, P.O. Box 6995Karachi(92-21) 2427338-2427530-2427339(92-21) 2416593

FARASAT INTERNATIONAL611-Uni Centre, I.I.Chundrigar RoadKarachi(92-21) 2415252-2415251(92-21) [email protected]

FAROOQ AHMAD PARTNERSHIPSakina House, Nasir RoadSialkot(92-432) 592790-587527(92-432) [email protected]

83



FAROOQ ASSOCIATES512-Uni Plaza, I.I.Chundrigar RoadKarachi(92-21) 2419139-2417922(92-21) 2635276

HAJI RAZAK JANOO (PVT) LTD.Adam Bldg., Mohd Feroz Street, Jodia Bazar, P.O.Box No.4299Karachi(92-21) 2419502-2419315-2418225(92-21) [email protected]

HESAM & SONSRoom No.610, 6th Floor, Uni Shopping Centre, Saddar, Shahrah-e-IraqKarachi(92-21) 5687373(92-21) 2624251

IMTIAZ & CO.229/A-B, Chowk Timber MarketRahim Yar Khan(92-731) 78136(92-731) 78136

INTERNATIONAL MULTI FOODS LTD.5th Floor, Kashif Centre, Shahrah-e-FaisalKarachi(92-21) 511763-519972-518209-7774943(92-21) 5683010

ISPEEZA ENTERPRISESJama Masjid RoadTurbat(92-861) 413308-411154(92-861) 9409

ISPEEZA ENTERPRISESJama Masjid RoadTurbat(92-861) 413308-411154(92-861) 9409

MADINA CORPORATION.No.1, Adam Bldg, Mohd. Feroz St., Jodia BazarKarachi(92-21) 2434155-2440426(92-21) [email protected]

MASOOM ALI SONSGul Mohammad Street, NanakwaraKarachi(92-21) 7733825-7729380(92-21) 7729513

NEW ALI TRADERSShop No.38-43, Khajor MandiKhairpur(92-792) 551943-551554(92-792) 551943

NUTRICIA FOODS INTERNATIONAL (PVT) LTD.602,Kashif Centre, Shahrah-e-FaisalKarachi(92-21) 5662098-516947-5662054(92-21) [email protected]

PANAMA IMPEX AGENCY204/205,2nd Floor, Chapal Plaza, Hasrat Mohani RoadKarachi(92-21) 2427530-2427338-2427339(92-21) 2416593

QARI ABDUL RAHIM & SONS (PVT) LTD.41-43,4th Floor, Arkay Square, Shahrah-e-LiaquatKarachi(92-21) 2422773-2421265-2421653(92-21) [email protected]

SHAFIQ & CO.5/34,Arkay Square, Shahrah-e-LiaquatKarachi(92-21) 2428615(92-21) [email protected]

SHAMA FRUIT CO.#28,Agha Qudar Dad Zari MarketSukkur(92-71) 650403-650457

SINDH PUNJAB INTERNATIONAL301,Clifton Centre, Main Clifton RoadKarachi(92-21) 5872864-575411-5855230(92-21) 5870446

SUPREME INTERNATIONALA-21-39, Karachi Centre, Sabzi Mandi, Off University Rd., Opp.New Town P.S.Karachi(92-21) 4929871-4929872(92-21) [email protected]

84





c) Exporters of citrus

M/S AL MAHMOOD ESTABLISHMENTC 1, 3RD FLOOR, JUMANI ARCADE ST 10/D/14, MAIN UNIVERSITY ROAD KARACHI (PAKISTAN)TELE # 92 21 4931980 4934382 4949805FAX: # 92 21 4945805 4944147

ROSHAN ENTERPRISESB 51, RIZWAN SOCIETY UNIVERSITY ROADKARACHI (PAKISTAN)TELE # 92 2108144519 8145717FAX # 92 21 8145818

M/S ALI INTERNATIONAL E 37/1, GULSHAN E IQBAL, BLOCK 7KARACHI (PAKISTAN)TELE # 92 21 4988881 5 (5 LINES)FAX # 92 21 8110518 [email protected]

M/S ARIF OVERSEAS TRADERS408, FORTUNE CENTREBLOCK 6 P.E.C.H. SOCIETYKARACHI (PAKISTAN)TELE # 92 21 4549810 10FAX:92 21 4536100

M/S RISHAD MATEEN & COMPANY 22, 3RD FLOORMAIN CHAMBERS, SHAHRAH E LIAQUATKARACHI (PAKISTAN)TELE # 92 21 2424889FAX # 92 21 2421764

M/S QUESTPAK PAKISTAN (PVT.) LTD.606, 6TH FLOOR, JAPAN PLAZAM.A. JINNAH ROADKARACHI (PAKISTAN)TELE # 92 21 7770661 3

M/S IFTIKHAR AHMED & COMPANY5 K, 28C, TRANSLYARI FRUIT & VEGETABLE MARKETOFF UNIVERSITY ROAD KARACHI 5 (PAKISTAN)TELE # 92 21 4944976 4944506FAX # 92 21 4932879 4944976

M/S SHAHNAWAZ LIMITED. 19, WEST WHARF ROADKARACHI (PAKISTAN)TELE # 92 21 2313934 38 2310236FAX # 92 21 2310623

M/S CHASE INTERNATIONAL67, HUMERA MANSION1 ST FLOOR, G. ALLAN ROADKARACHI (PAKISTAN)TELE # 92 21 2312366 2312367FAX # 92 21 2312063

M/S UNION FRUIT EXPORTS (PVT) LTD. 56 G, GULZAR CHOWKMANZOOR COLONY, KARACHI (PAKISTAN)TELE # 92 21 5891509 5891067FAX # 92 21 5887526

M/S SARAH FRUIT TRADING CO. (PVT) LTD. 1 A, SECTOR NO. 16, KORANGI INDUSTRIAL AREA,KARACHI (PAKISTAN)TELE # 92 21 5054373FAX # 92 21 5054371

Source: Telemedpak website

d) Major mango exporters

Following are the well-known exporters of mangoes Pakistan:

M/S AI Mahmmod Establishment C 1, 3rd floor, Jumani ArcadeSt 10/D/14, Main University RoadKarachi (Pakistan)Tele#92 21-4931980, 4934382, 4949805Fax#92 21-4945805, 4944147

Roshan Enterprises B 51, Rizwan Society University Road Karachi (Pakistan)Tele# 92-21-8144519, 8145717Fax# 92-21-81455818

85



M/s Ali International E 37/1, Gulshan e Iqbal, Block 7 Karachi (Pakistan)Tele# 92 21 4988881 5 (5 Line)Fax# 92 21 8110518, [email protected]

M/s Pirzada Enterprises 16 C, Suit 6, 10th Commercial Lane, Zam Zama Phase 5 Karachi (Pakistan)Tele# 92 21 5838825Fax# 92 21 5838823 4550397Mobile# 0300 [email protected]

M/s Arif Overseas Traders 408, Fortune Centre, Block 6 P.E.C.H. Society Karachi (Pakistan)Tele# 92 21 4549810 10Fax# 92 21 4536100

M/s Rishad Mateen & Company 22,3rd floor, Mian Chambers Shahrah-e--Liaquat Karachi (Pakistan)Tele# 92 21 242889Fax# 92 21 2421764

M/s Questpak Pakistan (Pvt.) Ltd. 606,6th floor, Japan Plaza,M.A.Jinnah Road Karachi (Pakistan)Tele# 92 21 7770661-3Fax# 92 21 [email protected]

M/s Iftikhar Ahmed & Company 5K 28C, Translayari (Fruit & Vegetable market)Off: University Road Karachi (Pakistan)Tele# 49449590, 4944976Fax# 4932879

M/s Mohd. Din Mohd. Shariff, 1058, P.LB. Colony Karachi (Pakistan)Tele# 494379, 4946754Fax# 4936276

M/s Sarah Fruit Trading Co. (Pvt.) Ltd.1 A, Sector No. 16, Korangi Industrial Area Karachi (Pakistan)Tele# 5054372, 5066272Fax# 5054371

M/s Union Fruit Exports (Pvt.) Ltd. 56 G, Gulzar Chowk Manzoor ColonyKarachi (Pakistan)Tele# 5891509, 5891067Fax# 5887526

M/s Durrani Associates 720, Business Centre Mumtaz Hussain RoadI I Chundrigur Road Karachi (Pakistan)Tele# 2416574, 2429481Fax# 2433663

M/s U.C. Corporation 1240, Sagar Road Lahore Cantt (Pakistan)Tele# 042-6661498Fax# 042-6661498

M/s AI Hammad Establishment 7/A, Rehmani Street Maqbool Road, Ichhra Lahore (Pakistan)Tele# 042 7594865

12. Shipping

a) Pre-shipment inspection and quality control

Quarantine Department of Pakistan thoroughly inspects all fruit consignments and no consignment can be shipped without quality approval. However, due to corruption in the department, it may not be fully relied upon. Furthermore a number of private inspection agencies are functioning and provide adequate services of pre-shipment inspection.

86





b) Inadequate and expensive refrigerated shipment facilities

The entire Kino exports are shipped by sea in refrigerated containers to maintain the quality to reach the foreign markets in prime condition. A 40-foot container contains approximately 24000 kg of kino.Source: PAGE December 3-9, 2001

Dubai is the biggest market for Pakistani mango produce. Freight of mango to Dubai is totally sea-based. Many other fruit are sent to different destinations through sea.

The exporters face the problem of limited refrigerated transport facility, which is expensive as well. This constraint puts a limit on the total exports from the country. Companies providing refrigerated containers are charging high prices, as the business is small and they do not get the advantages of economic scales. Moreover, Pakistan National Shipping Corporation (PNSC) is not providing any refrigerated container facility at all. Source: Hexpro 2000 & Beyond/SMEDA

c) Limited air cargo space

Pakistan International Airlines (PIA) provides cargo space in its passenger planes and is not operating dedicated freighter plane flights. Due to highly perishable nature, mango can only be exported by air. So the exports of mangoes and other perishable products with little shelf life can not be increased unless additional cargo space is provided.

With the exception of Dubai, mango exports to all other destinations are sent by air. As far as the airfreight of mango is concerned, foreign air carriers do the bulk of lifting. The national carrier PIA lifts less than 20% of the mango cargoes. PIA charges fuel adjustment charges ($0.8 per kilogram in June, 2000) on shipments. The foreign airlines do not have such charges.

Fruit exporters are also not satisfied with the frequent changes in freight rates of fruit and vegetables during their seasons of harvest and exports. They want PIA (Pakistan Int’l Airlines) to announce its freight rates before January 31 every year which should be effective for mango export from May 1 to September 30 without revision.Source: Dawn 29 Dec 2001

d) Limited availability of inland transport

Inland transportation of exportable fruits is either carried out by foreign shipping companies or the product is transported without any temperature-controlled environment. Pakistan Railways (PR) is not providing any facility at all for inland transportation of refrigerated containers. Source: Hexpro 2000 & Beyond/SMEDA

87


13. Trade promotion

a) Trade Promotion

Karachi based Fruit Vegetables Processors and Exporters Association is the representative association. It is involved in overall improvement in all sectors of fruit industry. It’s also having activities of national and international promotion of Pakistani fruits.

Following agencies/departments are also actively engaged in trade promotion of fruits both on national and international level.

Ministry of Food, Agriculture and LivestockPak Secretariat Block-A, Islamabad, PakistanTel. 51- 9203307, 51- 9210351Fax 51 – 9221246



Punjab Mango Production and Marketing Committee

EPB occasionally holds fruit exhibitions at important markets including Kong, Beijing, Kuala Lumpur, Brunei, Dhaka, London, Frankfurt, Paris and Rotterdam. It also arranges to take exporters delegations to internationally arranged trade exhibitions to present Pakistani produce.

The inland and international promotion of fruit is made through following ways:

participation in international trade fairs/shows;

national fruit shows;

invitation to international buyers for visit;

seminars and workshops to motivate the traders to extend their activities to international markets.

88


14. Conclusions and recommendations

a) Recommendations

Adequate information for growers is necessary to make them understand the utility of application of chemical fertilizer, control of insects and pests and use of other inputs. The lack of credit is found to be a critical problem, which affects the decisions of growers. This is one of the serious problems for growers in general and citrus producers in particular because citrus orchards require sufficient amount of capital for management operations and use of inputs. Source: Telemedpak website

Post harvest technology standardized market practices: The post harvest losses in fruits are very huge. The high rate of post harvest losses in fruits and rising consumer prices are resulting in low returns to the growers and traders, besides limiting the national exports. The high need is to minimize post harvest losses in fruits, to safeguard the interest of growers, processors, traders and as well as consumers. In addition to this, the standardization of pre and post harvest management technologies aimed at minimizing post harvest losses and standardization of market practices are inevitable to promote horticulture as an industry in Pakistan. The quality needs to be maintained and even improved keeping in view the WTO standards to further capture the international marketSource: PAGE website article, Apr-02

b) Storage life improvement

Recent research in the field of skin coating of mangoes has shown good results and further research for improving storage life through culture practice, use of hormones, atomic radiation, etc. appear to be important and significant.

The practical implementation of these new technologies is must for survival and growth. For the time being, until the new technologies are adopted, more and more cold storage facilities are needed to be set up to maintain quality and to avoid post-production losses.

c) Utilization of by products

Utilization of peel of citrus fruit and seed kernal of mango deserves serious attention. This may prove a new addition to Pakistan’s export commodities.

d) Shortcut marketing channel

Exporters are suggested to procure fruit direct from the orchards instead of buying from the markets for this would not only reduce their procurement cost but also enable them to have even fresher mangoes.Source: Dawn 29 Dec 2001

89


e) Other recommendations

Land for the establishment and expansion of nurseries.

Infrastructure development and equipment.

Incentive schemes and financial assistance.

Air cargo space/subsidy on air and sea freights.

Packaging and other associated facilities.

Institutional support research and development.

Exchange of new germ plasma in developing new crop varieties.

Seed policies to facilitate the importation of hybrid seeds of horticultural crops.

Exchange of experts in different fields.

Joint ventures in seeds and planting material production.

Joint ventures in storage and processing industry.

Exchange of technologies in production of small farm machinery and equipment.

Training programs on hybrid seed production, post-harvest handling, processing, socio-economic data collection and analysis.

Setting up of a regional information network.

Appropriate handling of horticultural items at airport and seaport.

Establishment of modern wholesale markets for fruits, vegetables and flowers. Source: PAGE website article, Apr-02

C. Cereals, milled cereals, starch and malt

1. Introduction

a) Significance of the product to the economy and foreign trade sector of the country

Export of cereals – $547.74m.

Total export of Pakistan – $8,939.80 m.


Rice is a highly valued cash crop and is also a major export item. It accounts for 6.7% in value added in agriculture, 17% in major crops and 1.6% in country’s GDP.

90


b) Value addition of cereal crops to major agricultural crops

% age share

Commodity 1996-97 1997-98 1998-99 1999-00 2000-01

All major crops 100.00% 100.00% 100.00% 100.00% 100.00%Wheat 29.41 30.63 29.24 32.13 30.53Rice 16.57 15.02 16.80 16.43 16.65Maize 2.86 2.63 3.49 3.10 3.38Barley 0.31 0.33 0.26 0.20 0.18Grain sorghum 0.48 0.47 0.47 0.40 0.44Millet 0.45 0.60 0.60 0.39 0.55



The major objective of the survey is to provide information, which is most likely to be of interest to potential buyers of cereal and cereal products, such as technical specification, packaging, export availability, prices and commercial & regulatory conditions.

d) Codes and HS no. of cereal products

Sub-item code (SITC) Commodity HS no.

0411000 Wheat unmilled 1001.100423101 Rice basmati 1006.300423102 Rice other varieties 1006.300430000 Barley unmilled 1003.000449000 Maize (corn) unmilled 1005.900453444 Grain sorghum, unmilled 1007.000459100 Millet unmilled 1008.200461001 Flour of wheat 1101.000462001 Groats and meal of wheat 1103.11, 1103.210471902 Rice flour 1102.300471909 Other cereal flour, ns 1102.900481101 Corn flakes 1904.100481119 Prepared food of cereals, ns 1904.900481201 Jelly powder 1904.900481202 Custard powder 1904.900481219 Cereal preparations, ns 1904.900483001 Macaroni, raw 1902.11, 1902.190483002 Speghetti 1902.11, 1902.190483003 Vermicelli, raw 1902.11, 1902.190483004 Vermicelli, baked 1902.11, 1902.190483005 Noodled 1902.11, 1902.190484102 Rusks 1905.100484201 Biscuits 1905.200484202 Waffles and wafers 1905.300484900 Other bakery products 1905.90

Source: Foreign Trade Statistics of Pakistan 2000-01/Trade Classification Directory

91


e) Nutritional composition (%) of various food grains

The composition of proteins and carbohydrates are considerably different in various food grains. Protein content of durum wheat is low, while whole wheat measures as high as 14.6 percentage. The nutritional composition of commonly used food-grains is listed in Table:

Food-grain Protein Fat Carbohydrate Crude fibre AshWheat 10.6 - 14.6 1.6 - 2.1 66.9 - 75.9 1.7 - 2.3 1.3 - 2.2Barley 8.3 - 11.8 1.8 - 2.1 68.0 - 72.0 4.3 - 5.7 2.3 - 2.7Rice 8.4 - 12.0 0.9 - 1.3 70.5 - 76.3 0.9 - 1.3 9.6 - 13.4Maize 9.5 - 11.5 4.0 - 5.0 68.0 - 75.0 1.7 - 2.0 1.2 - 1.6Grain Sorghum 8.0 - 9.5 1.9 - 2.0 70.0 - 74.2 2.0 - 2.5 1.7 - 2.0Millet 9.4 - 10.5 3.2 - 3.8 68.5 - 71.5 1.5 - 1.8 1.8 - 2.2

Source: Telemedpak website

f) Economic importance

Rice is the second most important food staple of Pakistan after wheat. It is also a major export. From 1995-00 the average annual production of rice has been about 4.4 million tons or 4486.7 thousand tones (Agricultural Statistics of Pakistan 1999-00).

Rice is grown in all the provinces of Pakistan. The main groups of varieties are Basmati (aromatic), IRRI, and miscellaneous.

i) Origin of maize Maize is the third largest crop in Pakistan after wheat and rice. Maize (Zea maize L.) belongs to Gramineae family, locally makai or maka, is an important ‘Kharif’ crop. The origin of maize is somewhat controversial. It is generally agreed that maize was first brought to our area from Central America. Some people say that China is its native land.

ii) Composition

The major protein in corn is zein. The exact composition of the various polypeptides has not been elucidated with great precision. They appear to vary and be dependent upon strain, although analytical methodology may be a significant factor as well. However, in any case, the role of zein in contributing plasticity and mobility of the dough is not particularly clear.

g) Value addition of barley crop to major agricultural crops

% age share

Commodity 1996-97 1997-98 1998-99 1999-00 2000-01

Barley 0.31 0.33 0.26 0.20 0.18Source: Economic Survey of Pakistan 2001-02

92


h) Nutritional composition (%) of barley

Food-grain Protein Fat Carbohydrate Crude fibre Ash

Barley 8.3-11.8 1.8-2.1 68.0-72.0 4.3-5.7 2.3-2.7Source: Telemedpak website


a) Some global facts about cereals

Wheat has been the staple food of the major civilizations in Europe, Western Asia, and North Africa for 8,000 years.

Wheat is grown under diverse climate conditions, from dry land with limited moisture for the duration of the growing season (e.g. located in much of the USA, Australia, CIS, West Asia and North Africa); and land with adequate water throughout the season such as the countries of Western Europe. Half of the developing world's wheat growing area comprises large irrigated tracts, mostly found in India, Pakistan and China.

Crop production is dictated by Nature, but post-production operations play an important role in creating a stable food supply.

In Asia wheat, rice and maize are the major food grains contributing over 90 percentage of the total food grains.

An estimated 42 percentage of the world's wheat, rice and maize during 1997 were produced in Asia, followed by 31% in Europe and 16 in North Central America (NC America). Asia contributes about 92 % of world's rice production followed by South America and Africa at about 3% each. NC America contributes half of the world's maize production, followed by Asia, Europe and South America who contribute 27%, 11% and 8%, respectively.

The major wheat producing and consuming countries in Asia are China, India, Iran, Pakistan and Turkey.

Improved wheat production enlarged the demand for agricultural labor.

Wheat is a valuable ingredient of feed given to milk and beef livestock and poultry because it contains more nutrients than the traditional feed grains such as maize, sorghum and barley. In developing countries, whole-grain wheat is usually fed to animals only when the grain has sprouted, shriveled, or become damaged.

b) Harvesting

Over 70 percentage of wheat crop in Pakistan is harvested manually using sickles or with types of knives leaving 3-6 cm wheat straw above the ground level. Methods and timing of harvesting are important factors to total crop yield. The manually harvested wheat crop is tied into small bundles and stacked in bunches of 10-15 bundles, which are left in the field for one to three days to dry. Combine or mechanical harvesters yield a higher proportion of immature grains and pose a moisture hazard, leaving no time for the grain to dry.

93


c) Transport

Labour-intensive systems of grain movement serve to minimize capital investment in countries where the cost of labour is low. Most wheat is manually loaded and unloaded from wagons, trucks, railroad cars, and barges between farm and mill. The greater the grain loss, the higher the cost. In some situations, bagged wheat may be loaded on and off vehicles ten times manually before it is milled.

d) Threshing

Threshing is mainly mechanical (60-80 percentage) in Pakistan. Tractor-driven threshers and at times combine harvesters are used. The design and maintenance of the thresher are central to reducing the broken grain percentage. Threshing using animals is also common in many areas of Pakistan. Several animals continuously walk around a pole to crush the wheat straw and heads to separate the grains and convert the straw to bhoosa (fodder). Source: Telemedpak website

e) Sowing and transplanting

The timetable of sowing and transplanting of different varieties of rice in the Punjab province is shown below:

Variety Time of sowing Time of transplanting

IR 6 and KS 282 10 May-7 June 20 June-7 JulyBasmati 385, 370, and Pak 1-20 June 1-20 JulyBasmati 198 1-15 June 1-15 July

Source: SMEDA agriculture database

f) Irrigation

In Pakistan, about 64% of maize is grown under irrigation, the rest is rain-fed. It is important as a source of food, feed and industrial products.

g) Climate

Maize is adaptable to widely varying climatic conditions. It performs poorly under high temperature and low humidity conditions, which damage the foliage and interfere with proper pollination, resulting in poor grain formation.

94


h) Time of sowing

The table gives the appropriate sowing time for different cultivars in various ecological zones in Pakistan:

Cultivars Sowing time Area of adaptation

NWFP

Shaheen (W) May-early June High mountain valleys of Swat, Chitral and Parachinar (Kuram Agency)

Agaiti-72 (Y) June High mountain valleys of Swat, Chitral and Parachinar (Kuram Agency)

Sarhad (W) May, June-July, Mid. July

Upper Hazara, Peshawar and Mardan, D. I. Khan

PUNJAB Agaiti-72 (Y) Feb. – March and August Plains areas

Sunehri (Y) Feb. – March and Mid. August, July

Plains areas Sailkot and Pothwar

Changez (W) June Late July

Murree Hills Sailkot and Pothwar

Soan (W) Early June Mid. July

Murree Hills Attock

1 Akbar (Y) February and July Plains Areas 1 Sadaf (W) Early to mid July Attock Sultan Feb. and July Plains

SINDH Akbar Feb. and Late July East of Indus River Sarhad Feb. and Late July East of Indus River

BALOCHISTAN Sarhad (W) June Upper region Sunehri (Y) July Plains areas

AZAD JAMMU AND KASHMIR

Sarhad (W) MayJune

Upper region Lower region

Note: W = White, Y = YellowSource: TeleMedPak Website

i) Code and HS no. of maize


0449000 Maize (corn) unmilled 1005.90Source: Foreign Trade Statistics of Pakistan 2000-01/Trade Classification Directory

95


j) Nutritional composition (%) of maize

Food-grain Protein Fat Carbohydrate Crude fibre Ash

Maize 9.5-11.5 4.0-5.0 68.0-75.0 1.7-2.0 1.2-1.6Source: Telemedpak website

k) Production of maize starches

The abundant availability of maize and existence of a large number of starch consuming plants make the establishment of starch manufacturing plants quite feasible and attractive. A number of starch manufacturing plants are working in the country to meet the requirements of about 50 different types of national industries. The large industrial consumers of maize starches include:

textile industry,

paper manufacturing plants,

corrugation plants,

confectionery units,

baking industry,

desserts manufacturers,

snacks industry,

pharmaceutical industry,

adhesive industry,

poultry and cattle feed industry.

Textile industry has been the largest business of the country. It is also the largest consumer of starched.

The enhanced demand of paper in the country for educational purpose, publishing, printing and documentation of economy and packaging industry, etc. has also boosted the demand for starches developed for paper industry. Paper industry has emerged as the second largest buyer of starches.

The sharply emerging food applications of starches after the entry of multinational food chains and changing eating habits are intensifying the demand for food grade starches.

l) Rafhan Maize Products Company Limited (RMPC)

Rafhan Maize Products Company is the largest manufacturer of starches. The company was incorporated in Pakistan in 1962. It is an affiliate of Corn Products Inc. Chicago, USA, which is one of the largest corn refiners in the world. It holds the 70% stocks of the RMPC. The company is listed on Karachi Stock Exchange and ranks as one of the top 25 companies listed on the stock exchange. It has also won the Prestigious Award and Corporate Excellence Award.

The plant uses maize as the basic raw material to manufacture a number of products including industrial starches. The capacity utilization is 98%.

96


RMPC has a good contribution to the agricultural development of Pakistan. Initially, only one crop of maize was harvested in Pakistan i.e. during winter season and per hectare yield was also low. To share the government’s agricultural development plan, RMPC took initiative in 1970 to grow crop in spring season as well. Through consistent efforts, the company was successful in developing the spring crop (March-June) as a second crop. The harvesting of the spring crop has given tremendous boost to maize production in Pakistan. Per hectare yield of maize has also been raised to a good extent. The company pioneers in hybrid maize seed production in Pakistan. Furthermore, through its Contract Maize Farming Program, RMPC provides the growers with inputs like hybrid seeds, insecticides herbicides and technical services through a network of agronomists stationed at major maize growing areas.

With ISO-9002 certification, RMPC is also backed by integrated research & development facility and stringent quality control system. It is the only company in Pakistan, which has the capability develop, produce and supply customized starches to different segments of industry as per their specifications and requirements. Its starch brands like Rafhan, Penetrose, Glob, Snowflake, Amisol, Tex-o-Film, O-Tac, and Coratex are consumed largely for multiple applications.Source: Business Recorder, Dec. 20, 2001

m) Faran Maize Industries (Pvt) Ltd.

It is also one of the major producers of maize starches in the country. It is currently producing 19,500 tons of maize starch per annum. It caters the demand of many Textiles, Paper & Board, Food and other industries.

Faran Maize Industries (Pvt.) Ltd. is a private limited company established in 1988. It is a member of the Lahore Chambers of Commerce and Industry (LCCI). The company is successfully operating its business and has a considerable market share.

n) Barley

i) Generic name

Barley is a member of the Gramineae family. Several species are commonly cultivated: Hordeum Vulgare L. (six-rowed barley), H. Distichum L. (two rowed barley), H. Aberg and Wiebe (irregular barley). In Pakistan national language, it is called Joe.

ii) History and origin

Barley probably originated in Asia or Ethiopia. In both Anyssinia and Southern Tibet, many kinds of barley grow naturally without cultivation, so it may have originated independently at different places. Barley production started in prehistoric times in Mesopotamia. It was being grown by the Babylonians, Chinese and Swiss lake dwellers in ancient times. Cultivated barley originated from Hordeum Agriocristhon Aberg, a six-rowed wild barley found in Tibet, or H. spontaneum Koch, a two-rowed wild barley found in the Near East.

97


Barley grows best on well-drained loams to clay loam soil; however, it can be grown on soils that are too light for wheat. It is usually planted on less fertile marginal lands. In Pakistan, the chief barley-producing districts are Dir, Bahawalnagar, Khuzdar, Chitral, and Thatta. About two-thirds of the area devoted to barley in Pakistan is rainfed and one-third irrigated.

o) Code and HS no. of barley


0430000 Barley unmilled 1003.00Source: Foreign Trade Statistics of Pakistan 2000-01/Trade Classification Directory

D. Capacity and production

1. Area under cereal crops

000 hectares

Commodity 1996-97 1997-98 1998-99 1999-00 2000-01

Wheat 8109 8355 8230 8463 8181Rice 2251 2317 2424 2515 2377Maize 928 933 962 962 944Millet 303 460 463 313 390Grain sorghum 370 390 383 357 354Barley 152 163 137 124 113


a) Production of cereals in Pakistan

000 tons

Commodity 1996-97 1997-98 1998-99 1999-00 2000-01

Wheat 16651 18694 17856 21079 19024Rice 4305 4333 4674 5156 4803Maize 1491 1517 1665 1652 1643Millet 146 211 213 156 199Grain Sorghum 219 231 228 220 219Barley 150 174 137 117 99


The long dry spell throughout the country affected all the cereal crops in 2000-01

98


b) Yield per hectare of major cereal crops

Kg/hectare

Commodity 1996-97 1997-98 1998-99 1999-00 2000-01

Wheat 2053 2238 2170 2419 2325Rice 1912 1870 1928 2050 2021Maize 1607 1627 1730 1717 1741


c) The land and cultivation

Total land areasTotal land area

(Mha)Total cropped areas

(Mha)%

Punjab 20.60 11.04 (55.70 %)Sindh 14.10 05.45 (27.50 %)NWFP 10.20 01.93 (09.73 %)Balochistan 34.70 01.40 (07.06 %)Pakistan 79.60 19.82 (07.06 %)

Source: PAGE website article, Apr-02

Of this cropped area, only 25 per cent is under cultivation, 4.5 per cent under forest, about 57 per cent is range land. The irrigated land is 75 per cent (15.2 mha. of the total cropped area), 19 per cent (or nearly 4.25 mha.) is rain-fed, while the other 4 per cent is irrigated by tube-well and other sources.

d) Area under rice cultivation

000 hectares

1998-99

Punjab 1,493Sindh 704NWFP 68Balochistan 158

e) Rice average yield

Table gives the province wise average yield of various groups of rice varieties in 1999-00.

Kg/hectare

Province Basmati varieties IRRI varieties Other varieties

Punjab 1415 2005 1899Sind - 3234 1743NWFP 1859 2172 1800Balochistan 2330 3029 1720


99


f) Area, yield and production of rice in Pakistan

1996-97 1997-98 1998-99 1999-00 2000-01

Area (000 hectare) 2251 2317 2424 2515 2377Yield rate (Kgs/hectare) 1912 1870 1928 2050 2021Production (000 tons) 4305 4333 4674 5156 4803


g) Production of different varieties in Pakistan

Million tons

1989-90 1995-96 1996-97 1997-98 1998-99

Basmati 1.2 1.5 1.6 1.4 1.7Irri 1.80 2.28 2.53 2.47 2.59Others 0.21 0.20 0.21 0.43 0.39


h) Commercial and personal usage

In Pakistan, the smaller farms generally keep more grain for consumption. It is estimated that the quantity of wheat entering commercial channels from farms up to maximum 4.5 hectare in size is negligible. Nationally, the 4.5 hectare farm is worked by about 65 percentage of the farmers, who occupy 35 percentage of the cultivated land.

i) Average composition (%) of wheat and wheat products in Pakistan

Commodity Moisture Protein Total ash Crude fibreFatty acid

(mg)Gluten

Wheat 13.3 12.7 1.4 2.4 20.5 8Flour 12.4 11.8 1.3 2 77 7Suji 13.4 10 0.7 0.4 31.9 5.6Maida 12.9 7.9 0.6 0.07 48.2 6.8

TeleMedPak website

j) World wheat production

Million tons

Year 1996 1997 1998 1999 2000

World 583 612 589 585 582Growth % age 7% 5% -4% -1% 0%

SMEDA agriculture database

100


k) World top ten wheat producers

Million tons

Year 1996 1997 1998 1999 2000

China 110.6 123.3 110.0 113.9 100.9India 62.1 69.3 66.0 70.8 70.1USA 62.0 67.5 69.4 62.7 62.0France 35.9 33.8 39.9 37.1 37.3Russian Fed 34.9 44.3 26.9 31.0 37.0Canada 29.8 24.2 24.4 26.9 26.2Australia 22.9 19.4 21.9 24.1 22.2Germany 18.9 19.8 20.2 19.7 21.3Pakistan 16.9 16.7 18.7 17.9 21.1Turkey 18.5 18.7 21.0 18.0 18.0


l) Yield comparison top ten producers

Kg/Ha

Yield 1996 1997 1998 1999 2000

World average 2,523 2,676 2,624 2,723 2,706 China 3,734 4,102 3,667 3,947 3,808India 2,472 2,671 2,578 2,583 2,621USA 2,435 2,624 2,907 2,872 2,812France 7,132 6,624 7,603 7,243 7,104Russian Fed 1,358 1,699 1,029 1,349 1,595Canada 2,430 2,121 2,266 2,591 2,620Australia 2,096 1,863 1,907 2,068 1,931Germany 7,293 7,268 7,204 7,543 7,158Pakistan 2,018 2,053 2,238 2,170 2,493Turkey 1,980 1,997 2,234 2,081 2,081


m) Area, yield and production of wheat in Pakistan

1996-97 1997-98 1998-99 1999-00 2000-01

Area (000 hectare) 8109 8355 8230 8463 8181Yield rate (Kgs/hectare) 2053 2238 2170 2491 2325Production (000 tons) 16651 18694 17858 21079 19024


101


n) Pakistan wheat production vs imports

Million tons

1995-96 1996-97 1997-98 1998-99 1999-00

Production 16.91 16.65 18.69 17.86 20.68Imports 1.97 2.50 2.52 3.24 n.a.


o) Value addition maize crop to major agricultural crops

% age share

Commodity 1996-97 1997-98 1998-99 1999-00 2000-01

Maize 2.86 2.63 3.49 3.10 3.38Source: Economic Survey of Pakistan 2001-02

p) Area under maize

000 hectares

Commodity 1996-97 1997-98 1998-99 1999-00 2000-01

Maize 928 933 962 962 944Source: Economic Survey of Pakistan 2001-02

q) Production of maize in Pakistan

000 tons

Commodity 1996-97 1997-98 1998-99 1999-00 2000-01


r) Yield per hectare of maize

Kg/hectare

Commodity 1996-97 1997-98 1998-99 1999-00 2000-01


s) Rotation of crops

Two rotation patterns commonly followed in Pakistan are:

Barley - RapeseedWheat - Barley Fallow

102


t) Cultivars

The following cultivars are used in different areas of the country:

NWFP

Frontier- 87

Sindh

Clipper

Barley-dwarf

Tj-70

Neelum

u) Area under barley

000 hectares

Commodity 1996-97 1997-98 1998-99 1999-00 2000-01

Barley 152 163 137 124 113Source: Economic Survey of Pakistan 2001-02

v) Production of barley in Pakistan

000 tons

Commodity 1996-97 1997-98 1998-99 1999-00 2000-01

Barley 150 174 137 117 99Source: Economic Survey of Pakistan 2000-01

w) Production and export of malt

Barley is used in Pakistan mainly as animal feed. It is also milled to produce a powder, which is used with sugar to prepare a traditional summer drink called Sattoo. The conversion of Barley into malt is rare. As the beer industry in Pakistan is almost non-existent (only two breweries are allowed to operate), the consumption of malt is also negligible. However, the potential for malt export is enormous. At present, malt is not being exported, the reason being absence of organized malt producers. If the malt manufacturing is organized, Pakistan may earn a good foreign exchange.

103


2. Raw materials

a) Procurement of fertilizers

The fertilizer manufacturing industry has well been established in Pakistan. A number of fertilizer units are working intensively in order to provide required volume of fertilizer. Following is the list of major fertilizer units, most of which are multinational:

Fauji Fertilizer Company Ltd.

Fauji Jordan Fertilizer Company Ltd.

Engro Chemical Pakistan Ltd.

National Fertilizer Corporation of Pakistan (Pvt) Limited.

National Fertilizer Marketing Ltd.

Dawood Hercules Chemicals Ltd.

Pak-Arab Fertilizer (Private) Limited.

Pak-China Fertilizer Limited.Source: SMEDA agriculture database

Along with the indigenous production, about 20% of fertilizer demand is met by imports.

Following table shows the state of fertilizer consumption and supply:

000 tons

1997-98 1998-99 1999-00 2000-01

Domestic production 1728 1886 2263 2298Imports 714 860 662 579Total off-take 2646 2584 2833 2966


b) Import of pesticides

1995-96 1996-97 1997-98 1998-991999-00

P*Volume (000 tons) 30048 30855 18195 17913 19148Value (million USD) 82 87 50 51 62

P* Provisional July-Apr.Source: Economic Survey of Pakistan 1999-00

104


As the manufacturing of pesticides is banned in Pakistan, the entire demand is fulfilled by imports. For this purpose many multinational pesticide manufacturing companies have their operations in Pakistan. They import pesticides in bulk from their parent companies and market them after packing here in Pakistan. A list of pesticide suppliers is as under:

Agrar Pak (Pvt) Ltd.

Agricides (Pvt) Ltd.

Agro-Care (Pvt) Ltd.

Agrowin (Pvt) Ltd.

Ali Akbar Enterprises

Aventis Cropscience Pakistan (Pvt) Ltd.

Balochistan Zarai Markaz & Co.

Basf Pakistan (Pvt) Ltd.

Bayer Pakistan (Pvt) Ltd.

Chem-agro International (Pvt) Ltd.

Cyanamid (Pakistan) Ltd.

Dow Chemical Pacific Ltd. (BPL)

Dow Elanco B.V.

Du Pont Far East Inc.

Du Pont Pakistan Operations (Pvt) Ltd.

FMC United (Pvt) Ltd.

Granulars (Pvt) Ltd.

Hoechst Marion Roussel (Pakistan) Ltd.

ICI Pakistan Ltd.

Insecta Pakistan (Pvt) Ltd.

Novartis (Pakistan) Ltd.

Pakistan Agro Chemicals (Pvt) Ltd.

Pan Pacific (Pvt). Ltd.

Rhone-Poulenc Chemicals (Pvt) Ltd.

Standard Finis Oil Co.

Velsicol Chemicals CorporationSMEDA agriculture database

105


c) Wheat local prices (trend prices)

Per 40 kg

1995-96 1996-97 1997-98 1998-99 1999-00

Support price 173 240 240 240 300Wholesale 186 198 272 284 286SMEDA agriculture database


a) Availability of labour and trained professional

More than 70% of Pakistan’s population is engaged in agriculture. The country has enormous human resources for cereal production. Agriculture being the sole professional activity of the village people, they are well aware of traditional methods. However, late introduction of new technology makes limited the availability of skilled mechanical operators in the country. However, Pakistan may easily be declared as self-sufficient in labour inputs for its agriculture sector. As far as the formal training is concerned, Pakistan has a good network of training institutes that are engaged in delivering intensive education and training. Following is the list of important agricultural training institutes of Pakistan:

University of Agriculture, Faisalabad

University of Agriculture, Peshawar

University of Arid Agriculture, Rawalpindi

Sindh Agriculture University, District Hyderabad

Horticulture and Plantation Crops Institute, Abbottabad

University College of Agriculture, D.G. Khan

University of Agriculture, Faisalabad, D.I.Khan

Gomal University, D.I.Khan

Agriculture Training Institute, Daghal

University of Agriculture, Faisalabad

Bhutto Agriculture College, Dokri

Farm Machinery Institute, Islamabad

National Agriculture Research Centre, Islamabad

Allama Iqbal Open University, Islamabad

Agricultural Engineering Institute, Mardan

University College of Agriculture, Multan

Pak-German Coop Agriculture Training Institute, Multan

Agro Tech Institute, Muzafarabad

Agriculture Training Institute, Peshawar

106


Baluchistan Agriculture College, Quetta

University of Balochistan, Quetta

Inservice Agriculture Training Institute, R.Y.Khan

University College of Agriculture, Rawalkot

Arid Agriculture Training Centre, Rawalpindi

Agriculture Training Institute, Sakrand

In-service Agriculture Training Institute, SargodhaSource: SMEDA agriculture database

b) Irrigation system of Pakistan

Pakistan is known for its excellent network of canals. It has three major reservoirs (Tarbela, Mangla and Chashma), 23 barrages, 12 huge interlink canals, about 63,800 kilometers canal's length, 106 kilometers water-courses and 107,000 number of channels spreading all over the country. Furthermore, 565,000 tube-wells are also installed in the country, which in case of decreased capacity of reservoirs and consistently low rains for sometime have become a vital component of the country’s agriculture. However, long standing draught and decrease in the water level in rivers and reservoirs is affecting the production negatively. Source: PAGE website article, Apr-02

c) Indigenous and imported technology

Pakistan’s engineering sector is strong enough to provide latest machinery and equipment to the agriculture sector.

However, the rice processing units and large wheat milling units are imported in order to conform to national and international quality standards and to avoid larger wastes.


a) Approved rice varieties

BasmatiSuper BasmatiBasmati 385Basmati 2000Basmati 370Shaheen BasmatiBasmati Pak (Kernal Basmati)Basmati 198IrriIrri 6 Nayab Irri 9OthersKS 282Source: SMEDA agriculture database

107


b) Standardization of rice varieties

Pakistan Standards Institution, Agriculture and Food Division lays down the minimum specification for rice of the following types:

1. Husked Rice 2. Husked Parboiled Rice 3. Milled Rice 4. Milled Parboiled Rice

The standard prescribes the varieties and grade designation of quality of rice for:1. Basmati 2. IRRI-6 3. KS-282 4. DR-82 5. DR-83 6. Lateefy

The standards are set as per grain length classification, milling process, variety or type of rice, grade, milling degree.

Extra long grain rice means 7.00 mm or more and long grain rice means 6.0 mm - 6.9 mm.

Followings are some rice varieties and their prescribed standards:

Title: Pak Basmati Extra Long Grain RiceClass: Extra Long GrainProcess: Brown (Cargo) RiceVarieties: Kernel Basmati, Super Basmati

Title: Pak Basmati Long Grain RiceClass: Long Grain RiceProcess: Milled White RiceVarieties PK-385, PK-370, PK-198 & Lateefy (Sindh)

Title: Pak Basmati Long Grain RiceClass: Long Grain RiceProcess: Brown (Cargo) RiceVarieties: PK-385, PK-370, PK-198 & Lateefy (Sindh)

Title: Pak Long Grain RiceClass: Long Grain RiceProcess: Milled White RiceVarieties:IRRI-6, KS-282, DR-82, DR-83

Title: Pak Long Grain RiceClass: Long Grain Rice 100% BrokenProcess: Milled White RiceVarieties IRRI-6, KS-282, DR-82, DR-83Broken 80% and above upto 100% will be considered 100% broken

Title: Pak Basmati Extra Long Grain RiceClass: Extra Long GrainProcess: Milled Parboiled RiceVarieties: Kernel Basmati, Super Basmati

Title: Pak Long Grain RiceClass: Long Grain RiceProcess: Brown (Cargo) RiceVarieties: IRRI-6, KS-282, DR-82, DR-83

Title: Pak Basmati Long Grain RiceClass: Long Grain RiceProcess: Milled Parboiled Rice (SELA)Varieties: PK-385, PK-370, PK-198 & Lateefy (Sindh)

Title: Pak Long Grain RiceClass: Long Grain RiceProcess: Milled Parboiled Rice (SELA/JOSHI)Varieties: IRRI-6, KS-282, DR-82, DR-83

Title: Pak Basmati Extra Long Grain RiceClass: Extra Long GrainProcess: Milled White Rice Varieties: Kernel Basmati, Super Basmati


108


c) Quality related benchmark system for the export of rice

The Government of Pakistan has introduced the Quality Related Benchmark system w.e.f April 5, 1999 for rice exports. The objective is to streamline the rice export and to improve perception of Pakistani rice in all international markets.

Salient features of the system

The administrative control of the Quality Related Benchmark System will be with Quality Review Committee (QRC). Quality Review Committee comprising of members from Managing committee of the Rice Exporters Association of Pakistan and Export Promotion Bureau will announce the Quality related Benchmark Prices. These prices will be in US $ per metric ton on F.O.B basis.

The Quality Related Benchmark System will cover all export of rice by the private sector or public sector either by land/sea or air routes to all global destinations.

All exporters of rice will be required to be a member of the Rice Exporters Association of Pakistan.

All contracts for rice exports will be registered with Export promotion Bureau. EPB will be the contract registration body and will only accept those contract applications for registration which meets the conditions as laid down.

All rice will be inspected prior to export by the QRC Rice Inspection Cell according to the actual registered contract and the exporters Quality declaration filed at the time of contract registration. QRC Rice Inspection Cell, an independent body under the QRC, will be managed by Rice Exporters Association of Pakistan.

There shall be no other statutory pre-shipment inspection of rice other than conducted by the QRC Rice Inspection cell.

No quantitative restrictions of any kind will be applicable.

All rice bags exported from Pakistan must bear the valid Export Registration Number of the Exporter, either printed or stenciled. Bulk shipments, loose in containers or ships hold/all brown rice, will be exempted from this requirement.

109


5. Exports

a) Export of cereals and cereal products from Pakistan

Figures in 000 USD

Sub code (SITC)

Commodity

2000-01 1999-00

000 USD% of total

cereal export

000 USD% of total

cereal export

0411000 Wheat unmilled 11,140 2.03 - 00423101 Rice basmati 229,376 41.88 249,380 53.530423102 Rice other varieties 282,221 51.52 214,042 45.950430000 Barley unmilled 1,029 0.19 106 0.020449000 Maize (corn) unmilled 180 0.03 88 0.020453444 Grain sorghum, unmilled 9 0.00 20 0.000459100 Millet unmilled 8 0.00 15 0.000461001 Flour of wheat 21,307 3.89 - 0.000462001 Groats and meal of wheat 110 0.02 - 0.000471902 Rice flour 25 0.00 - 0.000471909 Other cereal flour, ns 2 0.00 - 0.000481101 Corn flakes 2 0.00 - 0.000481119 Prepared food of cereals, ns - - 21 0.000481201 Jelly powder 42 0.01 242 0.050481202 Custard powder - - 23 0.010481219 Cereal preparations, ns 588 0.11 99 0.020483001 Macaroni, raw 193 0.04 144 0.030483002 Speghetti 38 0.01 6 0.000483003 Vermicelli, raw 142 0.03 220 0.050483004 Vermicelli, baked 738 0.13 639 0.140483005 Noodled 80 0.01 272 0.060484102 Rusks 40 0.01 14 0.000484201 Biscuits 439 0.08 498 0.110484202 Waffles and wafers 27 0.00 - 0.000484900 Other bakery products 7 0.00 - 0.00

Total 547,743 100.00 465,830 100.00Source: Foreign Trade Statistics of Pakistan 2000-01

110


b) Major cereal items regarding export

Figures in 000


2000-01 1999-00

000 USD% of total

cereal export

000 USD% of total

cereal export

0423101 Rice basmati 229,376 41.88 249,380 53.530423102 Rice other varieties 282,221 51.52 214,042 45.950461001 Flour of wheat 21,307 3.89 - 0.000411000 Wheat unmilled 11,140 2.03 - 0


Rice alone constitutes 93% of total export of all cereals and cereal products. The share of wheat and wheat floor combinely contributes 6% to this export.

The export of wheat remained nil in 1999-00 due to ban on wheat export. The ban was due to increased local demand owing to feeding to millions of Afghan and Kashmiri migrants. Pakistan had to import wheat in 1999-00 in order to meet its local demand.

c) Major export markets

Following are major trading partners in cereal exports. The lists have been order as per relative share of the countries:

Sub code (SITC) Commodity Major markets (share-wise)

0423101 Rice basmati

DubaiSaudi ArabiaSultanate of OmanUnited KingdomQatarBahreinKuwait

0423102 Rice other varieties

African countries, NSAfghanistanDubaiIvory CoastKenyaBangladeshIraqRep. of Congo

0411000 Wheat unmilledAfghanistanIraq

0461001 Flour of wheatAfghanistanChinaRepublic of Uzbekistan

0471902 Rice flour AustraliaSource: Foreign Trade Statistics of Pakistan 2000-01

111


d) Export prices (2000-01)

Sub code (SITC) Commodity Average price in 2000-01 (USD)0411000 Wheat, unmilled 138.38/MT0423101 Rice, basmati 456.87/MT0423102 Rice, other varieties 144.44/MT0430000 Barley unmilled 118.61/MT0449000 Maize (corn) unmilled 151.67/MT0453444 Grain sorghum, unmilled 131.43/MT0459100 Millet unmilled 159.84/MT0461001 Flour of wheat 147.12/MT0462001 Groats and meal of wheat 150.46/MT0471902 Rice flour 205.61/MT0471909 Other cereal flour, ns 503.04/MT0481101 Corn flakes 0.77/KG0481119 Prepared food of cereals, ns n.a.0481201 Jelly powder 1.18/KG0481202 Custard powder n.a.0481219 Cereal preparations, ns 1.88/KG0483001 Macaroni, raw 0.30/KG0483002 Speghetti 0.92/KG0483003 Vermicelli, raw 0.35/KG0483004 Vermicelli, baked 0.51/KG0483005 Noodled 1.02/KG0484102 Rusks 0.96/KG0484201 Biscuits 1.19/KG0484202 Waffles and wafers 2.46/KG0484900 Other bakery products 2.28/KG

Foreign Trade Statistics of Pakistan 2000-01

112


e) World top rice producers

000 tons

Year 1996 1997 1998 1999 2000

China 197.1 202.7 193.0 200.3 190.4India 122.0 125.2 122.2 132.3 135.0Indonesia 51.1 49.4 48.5 50.9 51.0Viet Nam 26.4 27.6 29.1 31.4 32.0Bangladesh 28.2 28.2 28.3 29.9 29.9Thailand 22.3 23.3 23.2 23.3 23.4Myanmar 17.8 17.7 16.7 19.9 20.0Philippines 11.4 11.3 8.6 11.8 12.5Japan 12.9 12.5 11.2 11.5 11.8Brazil 10.0 9.3 7.8 11.8 10.9USA 7.8 8.1 8.5 9.3 8.7Korea Rep 7.1 7.3 7.3 7.3 7.3Pakistan 4.30 4.33 4.67 5.16 4.80


f) World rice exports

$ million 1994 1995 1996 1997 1998Value 4,324 5,624 5,413 5,553 6,693 Growth % age 30% -4% 3% 21%


g) Major exporters market share

$ million1998

Thailand 2057India 1150China 879USA 593Pakistan 573Others 452Italy 305Australia 197Uruguay 187Argentina 166Egypt 134


113


h) Pakistan rice exports


2000-01 1999-00

000 USD% of total

cereal exports

000 USD% of total

cereal exports

0423101 Rice, basmati 229,376 41.88 249,380 53.530423102 Rice other varieties 282,221 51.52 214,042 45.950471902 Rice flour 25 0.00 - 0.00


i) Rice export prices (2000-01 average)

Sub code (SITC) Commodity Average price in 2000-01 (USD)

0423101 Rice, basmati 456.87/MT0423102 Rice, other varieties 144.44/MT0471902 Rice flour 205.61/MT


j) Major export markets (2000-01)

Following are major trading partners in rice export. The lists have been order as per relative share of the countries:


0423101 Rice basmati

DubaiSaudi ArabiaSultanate of OmanUnited KingdomQatarBahreinKuwait

0423102 Rice other varieties

African countries, NSAfghanistanDubaiIvory CoastKenyaBangladeshIraqRep. of Congo

0471902 Rice flour AustraliaSource: Foreign Trade Statistics of Pakistan 2000-01

114


k) Top exporters

Million tons

1995 1996 1997 1998 1999

World total 102.5 98.4 106.7 109.4 114.1 USA 32.4 31.2 25.8 27.0 28.4France 16.3 14.6 14.6 13.7 18.3Australia 7.8 14.6 19.4 15.2 16.5Canada 17.0 16.5 18.9 17.7 16.2Argentina 6.9 3.5 8.8 10.4 8.8Germany 3.7 4.2 3.9 4.9 4.7


l) Export value of wheat and wheat flour

Figures in 000 USD


2000-01 1999-00

000 USD% of total

cereal export

000 USD% of total

cereal export

0411000 Wheat unmilled 11,140 2.03 - 0.000461001 Flour of wheat 21,307 3.89 - 0.000461001 Flour of wheat 21,307 3.89 - 0.00

m) Export prices of wheat and wheat flour (2000-01)


0411000 Wheat, unmilled 138.38/MT0461001 Flour of wheat 147.12/MT

n) Major trading partners in wheat export


0411000 Wheat unmilledAfghanistanIraq

0461001 Flour of wheatAfghanistanChinaRepublic of Uzbekistan


115


o) Export of maize

Figures in 000 USD


2000-01 1999-00

000 USD% of total

cereal export

000 USD% of total

cereal export

0449000 Maize (corn) unmilled 180 0.03 88 0.02Source: Foreign Trade Statistics of Pakistan 2000-01

p) Export price of maize (2000-01)


0449000 Maize (corn) unmilled 151.67/MTSource: Foreign Trade Statistics of Pakistan 2000-01

q) Export potential of maize starches

As the existing starch manufacturing units are hardly fulfilling the needs of local consumer industries, the export of starches can be made possible if the new units are established or the existing units expand their capacities to a good extent. Due to its strategic geographical location, Pakistan can seize business opportunities in the regional emerging markets particularly Central Asian States, Middle East and South Asia.

r) Export of barley

Figures in 000 USD


2000-01 1999-00

000 USD% of total

cereal export

000 USD% of total

cereal export

0430000 Barley unmilled 1,029 0.19 106 0.02Source: Foreign Trade Statistics of Pakistan 2000-01

s) Export price of barley (2000-01)


0430000 Barley unmilled 118.61/MTSource: Foreign Trade Statistics of Pakistan 2000-01

116


t) Production and export of malt

Barley is used in Pakistan mainly as animal feed. It is also milled to produce a powder which is used with sugar to prepare a traditional summer drink called Sattoo. The conversion of Barley into malt is rare. As the beer industry in Pakistan is almost non-existent (only two breweries are allowed to operate), the consumption of malt is also negligible. However, the potential for malt export is enormous. At present, malt is not being exported, the reason being absence of organized malt producers. If the malt manufacturing is organized, Pakistan may earn a good foreign exchange.


a) Contract registration procedure for rice exports - Export Promotion Bureau

The Government of Pakistan has announced the following procedure for export and registration of the export contracts with Export Promotion Bureau in respect of rice to be exported to all global destinations w.e.f. April 5, 1999:

All interested rice exporters have to apply (on a prescribed form) for registration of their export sale contract with EPB for export of all rice to all global destinations as per and in acceptance of the terms and conditions given below:

Applicant is member of Rice Exporters Association of Pakistan.

Contract for rice export is valid for shipment within 90 days from contract registration date after which date the contract registration will become automatically null and void.

Price of contract is at or above the prevailing Quality Related Benchmark for the rice.

Contract is not for shipment to any European Union destination for which a separate procedure exists.

Exporters need not to present L/C at the time of making contract registration application nor will be required to divulge information about his buyer’s name or address. He simply has to mention the shipment destination for the contract.

There is no requirement for any security deposit or any quantitative restrictions whatsoever.

Quality Declaration form addressed to Quality Review Committee is attached.

Inspection of cargo as per procedures prescribed and determined by the Quality Review Committee is accepted. Quality Clearance Certificate from QRC will be a necessary document for allowing consignment for export at custom stage.

Copy of all contract registrations with Quality Declaration form will be forwarded immediately by the Export Promotion Bureau to the QRC Rice Inspection Cell for monitoring of export performance as per Quality Declaration.

Buyer’s purchase order reference number and date or suppliers contract number and date or L/C number and date has to be mentioned in the contract registration application.

Source: SMEDA Agriculture Database

117


7. Export channels

a) Export channels for rice

Farmers are seldom engaged in processing and export of rice.

Farm Grain Market Processor Exporter Importer

Nevertheless, a small number of organized companies have achieved backward and forward integration enabling them to manage all processes by themselves i.e. growth, processing and export.

Farm/processing unit Importer

b) Export channels for wheat

Generally, supply and the government itself controls procurement of wheat. Government Food Corporation is responsible to manage the supply and demand of wheat and import wheat if there is deficit in local supplies. However, the surplus wheat is also exported directly by the corporation.

Farm - Government food corporation Importer

c) Rice exporters

Following are the well-known exporters of rice:

REEM RICE MILLS (PVT.) LTD.123 E/1, HALLI ROAD, GULBERG IIILAHORETEL: 042 5760101 3FAX: 042 [email protected]

AMIN ITTEFAQ RICE MILLS53 GRAIN MARKETNANKANA SAHIBTEL:04941 874657 874304FAX:04941 874557 0496 [email protected]

WHITE PEARL RICE MILLS (PVT) LTD.GHALLAH MANDI, JALAL PURBHATTIAN DISTT. HAFIZABADTEL:04363 400022 04363 400033 44021 2350022 33FAX:04363 [email protected]

HASAN CORPORATIONGHALLAH MANDI JALALPURBHATTIAN DISTT HAFIZABADTEL: 04363 400440 400904/400840FAX:04363 400740

M AZHAR & COMPANYGHALLAH MANDI JALAL PURBHATTIN DISTT HAFIZABADTEL:04363 400415 04363 40081504363 400515FAX:04363 400715 04363 [email protected]

FAZAL KARIM & SONSGHALLAH MANDI GHARIBI HAFIZABADTEL: 0438 521065, 2507FAX: 0438 520671, 520672

118






IQBAL RICE MILLSFAISALABAD ROAD CHINIOTTEL:0466 332734 0466 331534FAX: 0466 334594

GUARD AGRI RESEARCH & SERVICES8 K M RAIWIND ROAD, LAHORETEL: 5320538 9, 5320648FAX: [email protected]

ZUBAIR ENTERPRISESGHALLAH MANDWALAL FURBHATTIAN DISTT. HAFIZABADTEL: 04363 400924, 04363 400424FAX:04363 [email protected]

SAFA RICE MILLS LIMITEDSAFA HOUSE 1 D, SAMANBERGBLOCK E, MOHD. ALI JOHAR TOWNTEL: 5171531 5171646FAX: 5171532

AL SADIQ INTERNATIONAL TRADERS851 SHADMAN COLONY NO. 1 LAHORETEL: 042 7577076, 042 7991905FAX: 042 7577364

QAISER NOMAN BERNAS (PVT) LTD.QNB HOUSE BAHRIA COMPLEX 1,GROUND FLOOR, M. T. KHAN ROAD, KARACHI.TEL: 021 111 762762FAX: 021 111 [email protected]

HAROON KASAM94 C KHAYBAN E ITTEHAD PHASE IIEXTENSION DEFENCE HOUSING SOCIETYKARACHI 75500TEL: 021 5897901 08FAX:021 [email protected]

AFTAB CORPORATIONAFTAB CHAMBERSPICTURE HOUSE STREETM.A. JINNAH ROAD, KARACHI.TEL: 021 7732405, 021 7760468FAX: 021 [email protected]

INTERTRADE86, A, FARID CHAMBERSABDULLAH HAROON ROAD, SADDAR,KARACHI.TEL: 021 5670893, 021 5677961, 021 5880811FAX: 021 2576178, 021 [email protected]

MATCO RICE PROCESSING (PVT) LTD.L/24/1, BLOCK 21, FEDERAL“B”INDUSTRIAL AREA, KARACHI.TEL: 021 6315584, 021 6320509, 021 6338947FAX: 021 [email protected]


8. Shipping

a) Shipping of cereals

Almost entire export of rice is carried out overland or sea. Along-with, National Logistic Cell (NLC), private transport companies provide satisfactory services of inland road transportation and export to neighboring countries like Afghanistan. Furthermore, Pakistan Railways (PR) is also a major source of trafficking of rice deliveries from dry ports to the seaport in Karachi. It is considered as the cheapest source of transportation.

As far as the shipments through sea are concerned, Pakistan National Shipping Corporation (PNSC) and foreign shipping companies extend their services in this regard.

119






mailto:rice@%20nexlinx.net.pk


9. Packaging

Cotton bags or polythene pouches are used for packing of rice. The consumer packs range from 2 kg to 10 kg as per the importer’s demand. If the bulk packaging is required, polypropylene sacks of 50kg are used.

Same is the case with other cereals except wheat which is stuffed in jute sack of 100 kg or delivered loose.

All the packaging material is locally available on economical rates.

10. Trade promotion

a) Trade promotion of cereals

Following agencies/departments are also actively engaged in trade promotion of rice both on national and international level.




Lahore based Rice Exporters Association of Pakistan is the representative association in case of rice. It is involved in overall improvement in all sectors of rice industry. It’s also having activities of national and international promotion of rice.

EPB is the major contributor in promotion of cereals abroad. It assures the participation of Pakistani exporters in important food exhibitions abroad. The exporters arrange stalls and exhibit their products and brands; thus get orders at the spot.


participation in international trade fairs/shows,

invitation to international buyers for visit,

seminars and workshops to motivate the traders to enhance their activities in international markets.

120


The Government Food Corporation solely does the export marketing of wheat. The transaction of wheat is generally a government-to-government affair.

11. Recommendations for cereals, & milling products, malt, starches, etc. sector

Establishment of more and more cereal processing industries may realize the potential in this sector. The value addition products will enable the processor to give better prices to the growers. This will motivate the growers to preferably cultivate cereal crops.

The total evacuation of Afghan refugees will definitely cause surplus stocks of wheat enabling Pakistan to export it.

The increasing rates of pesticides fertilizers and utilities enhance the cost of crops giving squeezed margin to the grower. This factor motivates the growers to divert their attention to other sources of income. If there is a comprehensive policy regarding the rates of raw materials and utilities, the growers might be protected and agriculture base of the country would be strengthened. The prices of the raw material may be controlled through giving tax relaxation to the relative industries.

The storage facilities for the cereal stocks is not upto the requirements. A good quantity of cereals is wasted due to inadequate storage. This loss may be avoided by setting up more and better storage houses.

The yield per hectare can increase if the growers are properly trained and if the findings of research organizations are acted upon.

The exporters must be encouraged to find markets for packaged & branded rice. This may give them better margins.

The government must invite the investors to invest in starched segment. Pakistan can seize business opportunities in the regional emerging markets particularly Central Asian States, Middle East and South Asia.

The modernization of rice processing plants will cause enhancement in both the production and the quality of rice.

The criteria of pre-shipment inspection of rice consignments must be made more reliable. This will improve the confidence of importers.

The need for more water reservoirs has been intensified owing to recent water shortage condition and draught-like situation faced by the country. The production of water intensive crops like rice is greatly damaged by shortage of water.

121


E. Preparations of vegetables, fruit and nuts

1. Introduction


Fruit & vegetable preparations including fruit juices, flakes of potatoes, guar meal, pickles, jams, fruit jellies, vegetable/fruit preserved by vinegar, etc.


Fruit & vegetable prep. export (2000-01) – $ 3.5 million.

Pakistan’s total exports (2000-01) – $8,939.80 m.

Percentage share of fruit & vegetable prep. exports in national exports – 0.039 %.

Fruit and vegetable processing industry is playing an important role by processing excessively produced fruits and vegetable, which might otherwise be wasted. A huge quantity of fruits and vegetables is wasted due to an inefficient farm to market infrastructure, lack of cold storages and less number of fruit processing plants. The fruit and vegetable processing industry helps the country earn a substantial foreign exchange through exports.


The major objective of the survey is to provide information, which is most likely to be of interest to potential buyers of Fruit and vegetable preparations, such as technical specification, packaging, export availability, prices and commercial & regulatory conditions.

d) SITC codes and HS nos. of the products

SITC code Commodity HS no.0564200 Flakes of potatoes 1105.200564602 Guar meal 1106.100566100 Potato presv o/th vinegar frozen 2004.100566900 Other vegetable o/th vinegar frozen 2004.900567101 Pickles 20.010567109 Vegetable fruit, etc., preserved by vinegar, ns 20.010567309 Tomato preserved o/than vinegar, ns 2002.900581001 Jams 2007.91 2007.990581002 Fruit jellies 2007.91 2007.990581009 Fruit nut, puree, pastes, etc. Ns 2007.91 2007.990589200 Nuts, groundnuts, etc., prep/prv ns 2008.11 2008.190589600 Fruits, etc., prep/prv nes 2008.400591000 Orange juice 2009.110593000 Juice of other citrus fruit 2009.300599501 Mango juice 2009.800599509 Juice of other fruit/veg ns 2009.800599600 Mixture of fruits or veg juices 2009.90

122



a) Pickles

Pickle is a traditional item of dining table throughout Pakistan. Pickles and sauces are self- prepared in majority of the houses of small towns and villages. Even many of the homes of large cities prepare them so as to make the tradition alive. However, with the easy availability of packaged and loose pickle in the market, the people of cities are now diverting towards the purchase it ready-made rather going through a tactful and long preparation process.

There are countless cottage units which are involved in preparing pickles and marketing them through the retail outlets. In organized sector, approximately 30 units are engaged in quantitative production of pickles. These units not only have good local sales but also export their pickles.

The major export markets for pickles are Indonesia, United Kingdom, Qatar, Saudi Arabia, and UAE.

National Food (Pvt.) Ltd. is the first introducer of packaged pickles in Pakistan. It markets its National brand pickles throughout the country. It is the market leader in pickles. The other prominent brands are Ahmad by Ahmad Food Industries (Pvt.) Ltd. and Shezan by Shezan International.

The raw material required in the production of pickles is unripe mango, glutinous fruits like Lasoora, carrots, lemon, mustard oil, spices and preservatives, etc. All these basic raw materials are abundantly produced in Pakistan and are available on quite low rates. There’s are easy availability of packaging material like glass bottles, steel caps, printed material and corrugated cartons, etc.

In order to approach price conscious customers, the companies also offer their brands in large size packaging like 20kg-bucket pack. The retailers sell pickles loose from these large packs. This strategy has provided even larger consumer base and the sales of pickles has boosted over the last few years.

b) Jams, jellies and marmalades

The preparation of jams, jellies and marmalades has its own technical and financial requirements; so only larger companies produce it. The use of jams and marmalades (generally named as breakfast products) is still limited to a smaller population as a great majority of people is used to have traditional breakfast (home made fried wheat bread, curry, tea/yogurt shake, etc.). However with modernization and advertising campaigns of companies is producing more and more consumers of these breakfast products. Jellies however are having quite good use as desserts.

123


Mitchell’s (by Mitchell’s Fruit Farms), Knorr (by Rafhan Best Foods), National (by National Food Pvt. Ltd.) and Ahmad (by Ahmad Food Limited) are famous brand. Mitchell’s is the market leader of this segment. Rafhan Best Foods (with Knorr brand) is a new entry in this sector. However, due to strong brand name recognition and good quality, it is grabbing its market share gradually. Some of the international brands are also available which give good competition to local manufacturers. The import of jams and jellies in 2000-01 is $0.076 million as against $0.072 export the same year.

All the raw materials including fruits, sugar, gelatin, starches and packaging stuffs are locally available.

The export of jams, jellies and marmalades is quite low. The less exports generally attribute to incompatible prices quoted to international buyers due to high processing packaging cost as compared to India and China. The Indian and Chinese brands have good penetration in the target markets. Bangladesh, Saudi Arabia and UK are the major buyers of these products from Pakistan. In the recent year, the food processing industry in Bangladesh has begun to establish. This may reduce the orders from Bangladeshi importers and the export of these products may further go down in coming years.

c) Ketchups

The use of ketchups has well widened as the eating habits of people are changing (from vegetables and simple foods towards meat items and fast foods) and with the establishment of international food chains like Pizza Hut, KFC, McDonalds, etc. in the country.

There are a great number of ketchup manufacturers on small and large scale. In the organized sectors, National Foods Pvt. Ltd., Shezan International and Rafhan Best Foods are major manufacturers. National brand leads the market.

Tomato is the major ingredient. Vinegar, sugar, brown sugar, and preservatives are other direct materials. All the materials including packaging materials are available locally.

d) Fruit juices

Oranges and mangoes produced in Pakistan have a unique taste and aroma. These are highly liked and preferred throughout the world for their magnificent characteristics. The bulk production of dozens of varieties of these two fruits not only fulfills the local demand but also a great quantity remains surplus for exports and processing. Other fruits and vegetables are also produced in abundance. Thus Pakistan has acquired a principal position in export of fruit juices.

Fruit juices constitute almost 86% of all exports by Fruit & Vegetable processing industry. The major markets are Germany, Netherlands, USA, Japan, UAE, Bangladesh, Afghanistan, UK and New Zealand are the major business partners in fruit juices trade.

Besides exports, fruit juices are also massively consumed locally. The customers may get fresh juices as well as in packaged. There are fresh fruit juice counters at almost every restaurant. Fresh juices are also sold on outlets opened in every locality. Packaged fruit juices have got boom within last ten years. Before it there were only one or two companies marketing their brands on limited level.

124


A good number of fruit juice manufacturers are functioning in the country. Shezan International, Nestle MilkPak (Pvt.) Limited, Murree Brewery, Sunripe Industries, Benz Industries, Sunflo Citrus (Pvt.) Limited, Country Juices Pakistan are the major players of this sector. Shezan is the first company, which introduced packaged fruit juices and is still holding the market leadership. Tang, a powdered fruit drink is imported and marketed by National Foods (Pvt.) Ltd.. It has monopoly in powdered fruit drink.

e) Canned fruit products

Capital cost of working capital required for canning industry is very high and canning of fruit and vegetables is undertaken only by some of the major fruit and vegetable processors. Hashmi Can Company Limited is the major name in canning of fruit products. Canned mango slices, pears and peach halves, fruit cocktail, canned peas, carrots and potatoes are among the fruit and vegetable being presently canned in the country. Mitchell’s and Shezan mango slices from grafted species packed in cans are being exported to Western Europe and USA.


a) Production of fruit in Pakistan

Figures in 000 tons

Year 1995-96 1996-97 1997-98 1998-99 1999-005-year



b) Commodity-wise production figure (important fruits)

000 tons

1996-97 1997-98 1998-99 1999-00 2000-01

Citrus fruit 2002.6 2037 1961.5 1943.2 1898Mango 914.5 916.8 916.4 937.7 990Banana 83.2 93.6 94.6 125.2 139Apple 6.5 573.1 9.3 377.3 439Guava 447.7 454.9 468.3 494.5 526Apricot 188.1 189 190.8 120.5 126Peach 45.8 46.5 48.3 33 n/aPears 35.2 35.6 37.5 37.7 n/aPlums 77.3 78.4 80.7 59 n/aGrapes 74.1 74.3 75.8 40.3 51Pomegranate 103.9 104.2 106.1 69 n/aDates 534.4 537.5 721.6 579.9 n/aAlmonds 49 49.1 50 32.3 33

n/a = not availableSource: Economic Survey of Pakistan-2001-02

125


c) Export value of fruit & vegetable preparations

Figures in 000

SITC Item

2000-01 1999-00


export000 USD


export0564200 Flakes of potatos 6.65 0.19 0 00564602 Guar meal 0.00 0.00 0.90 0.270566100 Potato presv o/th vinegar frozen 8.16 0.23 0.00 0.000566900 Other vegetable o/th vinegar frozen 0.00 0.00 15.97 4.850567101 Pickles 283.55 8.10 300.35 91.16

0567109Vegetable fruit, etc., preserved by vinegar, ns

0.00 0.00 12.27 3.72

0567309 Tomato preserved o/than vinegar, ns 1.69 0.05 0.00 0.000581001 Jams 17.96 0.51 50.28 1.300581002 Fruit jellies 54.89 1.57 24.16 0.630581009 Fruit nut, puree, pastes, etc. Ns 38.24 1.09 51.58 1.3402589200 Nuts, groundnuts, etc., prep/prv ns 71.41 2.04 0.00 0.000589600 Fruits, etc., prep/prv nes 0.00 0.00 0.55 0.010591000 Orange juice 579.07 16.54 731.79 18.990593000 Juice of other citrus fruit 577.38 16.49 1359.87 35.290599501 Mango juice 835.26 23.85 368.19 9.550599509 Juice of other fruit/veg ns 991.77 28.32 913.55 23.700599600 Mixture of fruits or veg juices 35.70 1.02 24.43 0.63

Total 3501.74 100 3853.88 100Source: Foreign Trade Statistics of Pakistan 2000-01

d) Export volume

Year 2000-01 1999-00Export volume (million Kg) 6.46 6.46


e) Major export items

Figures in 000

SITC Item

2000-01 1999-00


export000 USD


export0567101 Pickles 283.55 8.10 300.35 91.160591000 Orange juice 579.07 16.54 731.79 18.990593000 Juice of other citrus fruit 577.38 16.49 1359.87 35.290599501 Mango juice 835.26 23.85 368.19 9.550599509 Juice of other fruit/veg ns 991.77 28.32 913.55 23.700599600 Mixture of fruits or veg juices 35.70 1.02 24.43 0.63


126


f) Major export markets

SITC Item Major markets

0591000 Orange juice

NetherlandsGermanyAustraliaSri LankaUSA

0593000 Juice of other citrus fruit

NetherlandsBangladeshUSAGermanyUAEUK

0599501 Mango juice

BangladeshUSAUKSingaporeAustralia

0599509 Juice of other fruit/veg ns

AfghanistanBangladeshJapanThailandGermany

0599600 Mixture of fruits or veg juicesUAEUKAfghanistan


g) Export prices (2000-01)

Code Commodity Price (USD/Kg)

0564200 Flakes of potatoes 2.060564602 Guar meal 0.290566100 Potato presv o/th vinegar frozen 2.430566900 Other vegetable o/th vinegar frozen 1.140567101 Pickles 1.080567109 Vegetable fruit, etc., preserved by vinegar, ns 1.120567309 Tomato preserved o/than vinegar, ns 0.120581001 Jams 0.710581002 Fruit jellies 1.200581009 Fruit nut, puree, pastes, etc. Ns 1.3802589200 Nuts, groundnuts, etc., prep/prv ns 0.690589600 Fruits, etc., prep/prv nes 0.780591000 Orange juice 0.860593000 Juice of other citrus fruit 0.630599501 Mango juice 0.380599509 Juice of other fruit/veg ns 0.460599600 Mixture of fruits or veg juices 0.60


127


4. Export channels

a) Channel of marketing

Mainly the exports are made by organized units. However, some of the small scale manufacturers and trading agencies are also engaged in the export of these products. General trading channels are as under:

Fruit Processing industry - Wholesaler/distributor - Retailer - Customer(Local market)

Fruit Processing industry - importer(Export market)

b) Major fruit processing companies/exporters

Mitchell’s Fruit Farms Ltd.3-B LDA Flats(Lawrence Road)M.M. Shafi Road-Lahore.Phone: 042-6307410Fax: 042-6307414

Plot 18/3 Dr. Dawood Pota RoadKarachiPhone: 021-5212112Fax: 021-5673588

Roshan EnterprisesB-51 Rizwan Society University Road KarachiPhone: 021-8145717Fax: 021-8145818

Hashmi Can Company17 Banglores TownMain Shahra-e-Faisal Karachi

National Foods Pvt. LimitedClarmont RoadCivil LinesKarachi

Shezan International 56- Bund Road Lahore Phone: 042-7466900-04Email: [email protected]

Tops Food & Beverages Ltd.Murree Brewery Company LimitedNational Park RoadRawalpindi.Phone: 051-5567047Fax: 051-5565461

Ahmad Food Industries (Pvt.) Ltd. D-112 Nauras Road S.I.T.E. – KarachiPhone: 021-2563524Fax: 021-2564570

128



Asian Food Industries Ltd.609, 6th Fl. Progressive SquareBlock-6 P.E.C.H.S.KarachiPhone: 021-4527840Fax: 021-4527842

International Multifoods Limited5th Fl. Kashif CentreShahrah-e-Faisal KarachiPhone: 021-5219972Fax: 021-5683010

King Citrus Trade1 K-14 NazimabadKarachiPhone: 021-4313494Fax: 021-4929945

Shaista Fruit Processing Industries (Pvt.) Ltd.12 Kasi PlazaNew Zargoon RoadQuettaPhone: 443634

Source: Jamal’s Yellow Pages-2001

c) Recommendations for preparations of vegetables, fruits and nuts sector

Being rich in the production of fruits and vegetables, Pakistan must establish a strong fruit and vegetable processing industry. The investors must be encouraged to establish export-oriented units. This will provide a good consumption to fruits and vegetables whose considerable quantity is wasted due to being in surplus.

Tax system for the industries must be simplified. Almost every industrialist is in favour of accumulative tax instead of about one dozen different taxes, surcharges and levies. This will create a better business environment for all the industries including the said one.

The recent introduction of corporate farming system in the country provides a good chance to present growers and new investors in establishing the farms with forward integration i.e. the farms coupled with processing units. In this respect, the example of Mitchell’s Fruit Farms coupled with Mitchell’s Food Industries can be had in mind.

Presently, one can find abundance of unhygienic food products, which are produced by unorganized sector. These products, being very cheap, snatch the market share of rather quality products. All this is damaging the organized sector, which, if prosperous, may approach the export market with better resources. If this situation is cured, the export of fruit & vegetable preparations may be increased.

The export of value addition products like fruit & vegetable products must be encouraged through incentives in regard of income tax, cargo and import of raw material.

F. Beverages, spirits and vinegar

1. Introduction


Beverages(a) Alcoholic beverages(b) Non alcoholic beverages.


129



Pakistan’s total exports – $8,939.80 m.

Beverages export – $ 0.039 m.

Spirits and alcoholic compounds export – $12.64m.

Percentage share of beverages exports in national exports – 0.00004%.(the share of beverages in national exports is just negligible.)

Percentage share of spirits and alcoholic compounds national exports – 0.14%.

National level production and sales of non-alcoholic beverages is quite tremendous. This industry contributes a lot to national exchequer. Carbonated beverages industry is third largest tax payer of the industry after tobacco and petroleum.

A good amount of excise duty goes to the government against local sales of alcoholic beverages.



The major objective of the survey is to provide information, which is most likely to be of interest to potential buyers of Beverages, Spirits and vinegar, such as technical specification, packaging, export availability, prices and commercial & regulatory conditions.

d) SITC codes and HS Nos. of beverages

Sub-item/SITC code Item name HS no.

1110101 Mineral water 22.011110102 Aerated water 22.011110103 Ice and snow 22.011110200 Waters containing added sugar or other sweetening matter 22.02

1121100Grape must in fermentation or with fermentation arrested other than by the addition of alcohol

2204.30

1121300Vermouth and other wines of fresh grapes flavoured with plants or aromatic substances

2205.10, 2205.90

1121500 Sparkling wine 2204.101121700 Wine of fresh grapes (other than sparking wine) 2204.21, 2204.291122001 Cidar 2206.001122002 Perry 2206.001122003 Mead 2206.001122009 Fermented beverages, n.s. 2206.001123000 Beer made from malt 2203.001124100 Whisky 2208.301124200 Spirits obtained by distilling grape marc 2208.20

1124300Compound alcoholic preparations of a kind used for the manufacture of beverages

2208.10

1124400 Rum and Tafia 2208.401124500 Gin and Geneva 2208.501124900 Spirits and distilled alcoholic beverages, n.e.s. 2208.90

130


e) SITC codes and HS nos. spirits and alcoholic compounds

Sub-item/SITC code Item name HS no.

5121100 Methyl alcohol5121300 Butyle alcohol5121500 Undenatured ethyl alcohol (80%)5121600 Ethyle alcohol, spirit, denatured5121902 Ethyle propyl allyl alconol5161703 Alcohols peroxide


a) Carbonated beverage

Carbonated beverage industry is considered to be the third largest tax payer in the country after Tobacco and Petroleum.

There are 35 organized plants of carbonated drinks in the formal sector, which are located mainly in cities which produce approximately 120 million cases (each having 24 bottles of 250 ml) per annum with annual growth of around 10-15 percent. Out of 35, eleven beverage plants are manufacturing Pepsi Cola, ten are producing Coca Cola, two plants are making 7-Up and four are engaged in manufacturing of a famous local brand Pakola.

Carbonated beverage industry employs over 500,000 people directly and indirectly and supports many upstream and downstream industries such as crown corks, glass bottles, plastic shells, sugar, transport, advertising and media, P.E.T. bottles. Due to this industry, a huge number of outlets are supported to generate widespread economic activity in the country.

Coca Cola is the first foreign brand that started its operations in 1953. Other international brands followed suit Pepsi entered in late sixties. Now almost all the leading brands like Coca Cola, Pepsi, RC, 7-Up, etc. have their presence in the country.

Coca Cola and Pepsi are major players of carbonated drink industry. Traditionally these large multinational companies would operate through their marketing offices in Pakistan. The bottling side of the operations would be run by the local partners under franchise agreements. The main role of these multinationals was to supply concentrates and provide brand support to their local bottling partners. However, in 1996, Coca Cola acquired these bottling facilities. Coca Cola International now owns these plants which are run by its local subsidiary, Coca Cola Beverages Pakistan Limited- CCBPL.

Analysts are of the view, Pepsi Cola leads the market because it is more aggressive in Marketing and promotion.

Almost all the raw materials are available locally. The raw material include, concentrate, crown corks, glass bottles, plastic shells, sugar, P.E.T. bottles, etc.

131


There has been a big jump in soft drink consumption in Pakistan over the past few years. However despite this growth, Pakistan’s annual per capita consumption for carbonated drinks, which is approximately 20 serves of 250 ml. This rate is one of the lowest in the world if we compare it with 420 of USA, 237 of Singapore, 86 of Malaysia, 56 of Philippines and 24 of Sri Lanka.

b) Non carbonated beverages

Mineral water, fruit juices, powdered concentrates, squashes and sharbet are also having a good share of soft drink market in Pakistan. Sharbet is a type of liquid concentrated made from extracts of herbs and fruit. It is generally used in home to serve to the guests. Rooh Afza made by Hamdard Pakistan leads the market in all these sub-segments. Rooh Afza is even exported to Middle East and other countries. Jam-Sheereen, Quice, Nauras, Mitchell’s are major brands in this context. Tang holds the market of powdered concentrate.

Fruit juices play an important role by saving millions of tones of fruits that would have otherwise gone waste. Shezan, Benz, Sunflo, country, Tropico are the major players.

Cindy, manufactured by local brewery (Murree Brewery) is a non-alcoholic beer remains the best seller.

There is a great potential for export of non-carbonated drinks.

c) Alcoholic beverages

The possession, transport, manufacturing and sales/export of alcoholic drinks are forbidden in Pakistan. Almost 97% of Pakistan's population (Muslims) is forbidden to touch alcoholic products. Only non-Muslims and foreigners are allowed to consume alcohols. A license is issued to non-Muslims fixing the quantity that might be consumed in a month. Large hotels are also licensed to hold and serve alcoholic beverages only to the foreigners. The licenses have also been issued to set up outlets of alcoholic drinks. There are about 180 such outlets throughout Pakistan. Source: http://shns.scripps.com/shns/story.cfm?pk=BEER-07-23-00&cat=II

Despite strict prohibition religiously and officially, a good number of Muslims belonging to elite class are used to drink. They get it from license holder non-Muslims or the traders involved in illegal sale of liquors.

132


d) Breweries

There’re only two breweries in Pakistan. One of the two breweries is Murree Brewery Co. Ltd. which was created 136 years ago to help keep India's British troops in good spirits. The brewery found itself encircled by Pakistan's borders when the Muslim homeland was created in 1947. It has been legally brewing distilled beer, vodka, gin, rum, brandy and whiskey. The company produces about 2.2 million litres of beer a year, with the two mainstay brands, Murree beer and Murree's classic lager, now in cans. A non-alcoholic beer is also sold. About 1.4 million litres of other alcohol products also are produced each year. Murree Brewery has a good hold on Pakistan’s alcoholic beverages market. Along with alcoholic ones, it also produces non-alcoholic beers with brand names, Cindy and Malt 97. These brands have monopoly on non-alcoholic beers market in Pakistan. The contact details of the company are:

Murree Brewery Co. LimitedNational Park RoadPO Box No. 1346000 RawalpindiPhone: +92 051-5567041-7Fax: +92 [email protected]

The second brewery, Beach Brewery was established in 1994 by the owner of a large hotel chain in Pakistan. The products are mainly used to serve in the group’s hotels. Beach Brewery manufactures only vodka, gin and whiskey.

3. Exports

a) Prospects of export of alcoholic beverages

Presently, the export of liquors is prohibited. But if the prohibition of exports is lifted, still the immediate export of liquors is not possible, as the industry is small and many years would be required to enable it to export.

133


b) Export volume of beverages

Litres

SITC Item2000-01 1999-00 1998-99 1997-98 1996-97


1110101 Mineral water 155710 94.25208308 55.5051496 30.0723072 65.481100 6.18

1110200Water sweetened & other nonalcoholic

9500 5.75167038 44.5013500 7.88 617 1.75 0 0.00

1110102 Aerated water 0 0.00 0 0.00106256 62.0511500 32.64 0 0.00


0 0.00 0 0.00 0 0.00 48 0 0.00

1110103 Ice and snow 0 0.00 0 0.00 0 0.00 0 16699 93.82

Total 165210 100.00375346 100.00171252 100.0035237 100.0017799 100.00Source: Foreign Trade Statistics of Pakistan 2000-01

c) Export value of beverages

SITC Item

2000-01 1999-00 1998-99 1997-98 1996-97

000 USD

% of total

beverage export

000 USD

% of total

beverage export

000 USD

% of total

beverage export

000 USD

% of total

beverage export

000 USD

% of total

beverage export

1110101Mineral water 35.84 91.88 45.66 45.89 15.87 29.82 8.37 58.52 0.08 0.33

1110200Water sweetened & other nonalcoholic

3.17 8.12 53.83 54.11 6.29 11.81 0.00 0.00 0.00 0.00

1110102Aerated water 0.00 0.00 0.00 0.00 31.06 58.37 5.74 40.09 0.00 0.00


0.00 0.00 0.00 0.00 0.00 0.00 0.20 1.39 0.00 0.00

1110103Ice and snow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 24.84 99.67

Total 39.00 100.00 99.49 100.00 53.22 100.00 14.31 100.00 24.93 100.00Source: Foreign Trade Statistics of Pakistan 2000-01

d) Export prices of beverages

SITC Item Export price (USD/Litre)

1110101 Mineral water 0.22 (in 2000-01)1110200 Water sweetened & other nonalcoholic 0.33 (in 1999-00)1110102 Aerated water 0.29 (in 1998-99)1121700 Wine of fresh grape, grape must 4.17 (in 1997-98)1110103 Ice and snow 1.49 (in 1996-97)

Source: Foreign Trade Statistics of Pakistan 1996 to 2001 volumes

134


e) Export markets

SITC Item Export markets

1110101 Mineral water

KazakhstanAfghanistanTurkmenistanNigeria

1110200 Water sweetened & other nonalcoholic AzerbaijanAfghanistan

1110102 Aerated water Afghanistan1121700 Wine of fresh grape, grape must Switzerland1110103 Ice and snow Sri Lanka


f) Export by value alcoholic compounds and spirits

SITC Item

2000-01 1999-00 1998-99

000 USD

% of total spirits and

alcohol items export

000 USD



000 USD



5121100 Methyl alcohol 0.00 0.00 8.34 0.21 15.41 0.575121300 Butyle alcohol 0.00 0.00 0.00 0.00 1.29 0.05

5121500Undenatured ethyl Alcohol (80%)

3450.78 27.30 1734.44 43.32 465.32 17.07

5121600Ethyle alcohol, spirit, denatured

5201.44 41.15 2261.43 56.48 1920.20 70.46

5121902Ethyle propyl allyl alconol

538.72 4.26 0.00 0.00 0.00 0.00

5161703 Alcohols peroxide 0.00 0.00 0.00 0.00 323.15 11.86Total 12641.72 100.00 4004.21 100.00 2725.37 100.00


g) Export by volume alcoholic compounds and spirits

000 litres

SITC Item 2000-01 1999-00 1998-99

5121100 Methyl alcohol 0 8 285121300 Butyle alcohol 0.00 0 15121500 Undenatured ethyl alcohol (80%) 10061 6070 15505121600 Ethyle alcohol, spirit, denatured 14150 7608 67225121902 Ethyle propyl allyl alconol 2010 0 05161703 Alcohols peroxide 0 0 1575

Total 26,221 13,685 9,875Source: Foreign Trade Statistics of Pakistan 1998 to 2001 volumes

135


h) Export prices alcoholic compounds and spirits

SITC Item Price ($/USD)

5121100 Methyl alcohol 1.11/litre5121300 Butyle alcohol 1.11/litre5121500 Undenatured ethyl alcohol (80%) 0.34/litre5121600 Ethyle alcohol, spirit, denatured 0.37/litre5121902 Ethyle propyl allyl alconol 0.27/litre5161703 Alcohols peroxide 0.21/litre


i) Export markets - Alcoholic compounds and spirits

SITC Item Export market

5121100 Methyl alcohol UAE5121300 Butyle alcohol Oman

5121500 Undenatured ethyl alcohol (80%)JapanNetherlands

5121600 Ethyle alcohol, spirit, denaturedJapanSouth Africa

5121902 Ethyle propyl allyl alconol Japan5161703 Alcohols peroxide Japan


G. Meat & edible meat offal

1. Introduction


The study covers meat and edible meat products. The meat is divided into three main categories i.e.:

meat of cows and buffalows (beef),

meat of goats and sheep (mutton),

meet of poultry (chicken),



136




The role of livestock in rural economy may be realized from the fact that 30-35 million rural populations is engaged in livestock raising, having household holdings of 2-3 cattle/buffalo and 5-6 sheep/goat per family deriving 30-40 of their income from it. The livestock saves the rural masses from abject poverty and further decrease in their socio-economic well-being.

Share of livestock in GDP

1998-99 1999-00 2000-01

9.3% 9.1% 9.3%Source: Economic Survey of Pakistan 2001-02

GDP real growth rates – Livestock

Year 1996-97 1997-98 1998-99 1999-00 2000-01

GDP real growth rate (%) 4.42 5.92 3.19 1.90 4.86Source: Economic Survey of Pakistan 2001-02

The export of meat from Pakistan is relatively a new segment of the country’s trade, as the real commercial level export started in not before than. Thus, the export of meat and meat preparations is not so high; but the export growth rate is quite encouraging. Pakistan owns a large inventory of livestock, which determines a large size of meat exports in future. So, meat export is bound to be a good contributor to Pakistan’s foreign exchange in the years ahead.

Export of meat and edible meat offal (2000-01) – $5.13 m.

Total exports of Pakistan (2000-01) – $8,939.80 m.

Share of fish & crustaceans export in total export – 0.06%.


The major objective of the survey is to provide information, which is most likely to be of interest to potential buyers of meat and edible meat offal, such as technical specification, packaging, export availability, prices and commercial & regulatory conditions.

137


Code and HS no. of meat and meat items:

Sub-code (SITC) Commodity HS no.

0111100 Meat bovine fresh/chill with bone 0201.10, 0201.200111200 Meat bovine fresh/chill boneless 0201.300112100 Meat bovine frozen with bone 0202.10, 0202.200112200 Meat bovine frozen boneless 0202.300121100 Meat of sheep, fresh or chilled 0204.10, 0204.230121200 Meat of sheep frozen 0204.10, 0204.230121300 Meat of goat fresh, chilled, frozen 0204.10, 0204.230123100 Poultry not in pieces frozen or chilled 0207.100123200 Poultry not in pieces frozen 0207.21-0207.230125600 Edible offal sheep, etc, frozen 0206.900129300 Snail (other than sea snails) 0307.600129900 Other meat edible offal fresh, chilled or frozen 0208.900168100 Meat of bovine animals salted 0210.200176000 Meat offal bovine preparations preserved nes 1602.500179000 Other prepared, preserved meat or offal 1602.90



a) Livestock management in Pakistan

Livestock enterprise in Pakistan is predominantly the endeavor of the small holder. Over 70 percent of all rural households own livestock and earn supplementary incomes out of them. Over 60 percent of all livestock and poultry are in the small, marginal and landless holdings.Source: Dawn, March 26, 2001

According to the livestock census of 1996, 43 percent of the herds consist of one or two animals, 28 percent breeders maintain three or four animals and 13 percent possess five or six heads, while only 16 percent have herds of a larger size. Source: Dawn, Apr. 02, 2001


a) Livestock population in Pakistan

Million numbers

Animal 1996-97 1997-98 1998-99 1999-00 2000-01

Buffalo 20.8 21.4 22.0 22.7 23.3Cattle 20.8 21.2 21.6 22.0 24.4Goats 42.6 44.2 45.8 47.4 49.2Sheep 23.7 23.8 23.9 24.1 24.2Poultry 382.0 276.0 278.0 282.0 n/aCamels 0.8 0.8 0.8 0.8 0.8


138


b) Production volume of meat

000 tons

Type1996-97 1997-98 1998-99 1999-00 2000-01


Beef 919 48.17 940 51.06 963 50.52 986 50.251010 50.12Mutton 602 31.55 617 33.51 633 33.21 649 33.08 666 33.05Poultry 387 20.28 284 15.43 310 16.26 327 16.67 339 16.82Total 1908 100% 1841 100% 1906 100% 1962 100% 2015 100%Source: Economic Survey of Pakistan 2001-02

c) Per capita consumption of meat in Pakistan

Kg/head/year

1996 1997 1998 1999 2000

Beef 7.16 7.16 7.16 7.16 7.17Mutton 4.68 4.69 4.70 4.17 4.72Chicken 2.83 3.10 2.16 2.30 2.34

d) Poultry sub-sector

The most popular species among poultry in Pakistan is chicken. Production of poultry on commercial basis and on a large-scale level started in Pakistan only after 1963, before that poultry was raised in small flocks as a backyard venture or sideline farming. These birds were later called Desi (domestic) variety so as to distinguish it from the birds produced from imported strains. Generating income is not the main objective of rearing backyard flock. This Desi poultry production, by and large serve common objectives, which were to provide chicken meat for guests eggs for the family. These Desi birds are scavengers and feed on crop residues and kitchen wastes.

The commercial poultry birds classified as broiler is the major source of chicken meat. Broilers are produced/matured within seven weeks of their placement. Some farmers manage to produce 1.75 kg weighing broiler even within 40 days. These strains of birds produce tender meat having soft, pliable, smooth textured skin.

In 2000, there were about 15732 broiler farms. However, the poultry units report a huge capacity under-utilization. The primary reason of low performance of the poultry sector is the rising cost of production with relatively constant or decreasing retail price trend of Pakistan.

Poultry production has emerged as a good substitute of beef and mutton. Its importance can be judged from the fact that almost every family in rural areas and every fifth family in urban areas are associated with poultry production activities in one way or the other.

139


e) Production of commercial poultry

Million no.

Production 2000-2001

Day old chicks 319.7Layers 18.1Broilers 253.3Breeding stock 6.2


The production of rural poultry products for 2000-01 are given in the table:

Million no.

Production 2000-2001

Day old chicks 31.0Cocks and cockribs 7.0Layers 31.0


f) The European Commission’s recent funding

The European Commission has agreed to fund an ambitious livestock project in Pakistan by approving a grant of 22.900 million euro (1.2 billion) Rupees. The project covers all of Pakistan and will help develop the potential of the livestock sector, improve existing provision of livestock services, eradicate diseases like Rinderpest and Foot and Mouth Disease and initiate efficient and quality production of vaccines. The signature ceremony was held March 2002.

This European Commission project will target the problems of animal disease control, by looking specifically at the final eradication of Rinderpest, and the conception of a progressive strategy to address the problem of Foot and Mouth disease (FMD) –the control of which is essential for the export of animal and animal products and by addressing other key diseases.

Animal nutrition, feed supply strategies (especially fodder supply), together with the improvement of markets and the marketing systems for internal as well as for export needs, are other essential components of this European Commission project. The duration of the project is six years.

The project also envisages training of field staff, strengthening the disease reporting system; emergency field intervention, establishment of a well-functioning network of epidemiological units and diagnostic laboratories will be set up, strengthened and co-ordinated. Source: http://www.delpak.cec.eu.int/whatsnew/livestock.htm)

140

http://www.delpak.cec.eu.int/whatsnew/livestock.htm


g) Feed and fodder situation

Feed for the various livestock species in Pakistan is derived from the crop sector, rangelands and other grazing areas. Agro-industrial by-products and animal/fish meals and wastes also provide some proportion to the total feed supply.

Green fodder helps much in livestock production. The area under fodder production is about 2.7 million hectares in the country, producing about 58 million tons of fodder. It is grossly insufficient to meet the requirements of even the present livestock population.

The current figures indicate that the livestock feed pool is deficient by 21 percent of the total dry matter (DM), by 29 percent in energy and 33 percent in crude protein (CP) requirements. The present fodder supply is one third of the actual needs. The per acre yield of conventional fodder crops is pathetically low as compared to the actual yield potential. The production of fodder per acre is low not only in rain-fed areas and rangelands, but even in irrigated tracts too. Seasonal fodder shortage (May-June and December-January) further accentuates the existing problem. Source: Dawn, March 12, 2001

Rangelands, particularly in NWFP and Baluchistan play an important roll in feeding small ruminants. Forestry is also closely related to livestock because it provides grazing ground and ranges for livestock feeding. Certain bushes grow on its own in Cholistan, Thar and other desert areas. These bushes are the also the main (rather the only) source for small and large ruminants grazing in these areas.

Fodder production and provision of balanced nutrition has been regarded as the most neglected sub-discipline of livestock production in Pakistan. The report of National Commission for Agriculture (1998) shows that animals on the average are significantly under nourished as animal receive on the average quantity of feed or fodder which amounts to somewhat less than 70% of their appetite.

Fodder can be classified as the most limiting factor in increasing productivity of livestock. The non-availability of required weightage of fodder not only affects productivity but also reflects adversely of defense mechanism of animals exposing them to many diseases which in return, add to deficiency in production.

h) Incentives for livestock sector

For promotion of livestock and poultry, the government has provided the following incentives in the agricultural package:

Imported plant and equipment not manufactured locally shall be subject to custom duty of 10 percent, with complete exemption from sales tax.

Capital structure of projects in agro-food industry will be entitled to debt: equity ratio of 70:30.

Projects will be entitled to financing from all banks and development finance institutions.

141


The poultry businesses incorporated as private limited companies are exempted from income tax for 8 years (1995 onwards).

The poultry businesses established in rural areas during 1993-94 to 1994-95 are exempted from income tax for eight years.

Expatriate personnel of the units will be allowed to import food items and other consumables without any duty or taxes subject to maximum limit of $2,000 per person per year.

Import of breeding stock will be allowed subject to the import duty of 10 percent.

Locally manufactured machinery will be provided on credit.

Parts and components upto 5 percent of initial C&F value of the imported plant and equipment shall be imported at 10 percent duty, if imported together with the plant. The export of livestock & livestock products has been allowed.Source: Economic Survey of Pakistan 2001-02

4. Raw materials

a) Raw material for poultry industry

Day-old chicks (DOC): Broilers are produced at farms. The farmers get day old chicks (DOC) from hatcheries. Hatcheries maintain their breeder farms or in some cases purchase their hatching eggs from breeder farms. Breeder farms depend on producers of parent stock. The present number of hatcheries is 284 and these units are running at almost 60% of their installed capacity.

Poultry Feed: Feed mills are also the player of the poultry industry. A good number of feed companies are established in Pakistan. Feed expenses are a major contributor to the total cost of the chicken production. It accounts for 45 to 55 % of the total cost of producing broiler. There are more than 170 feed mills in the country and these are running at about 54% of their installed capacity.

In Pakistan Soyabean meal is the largest source of high biological value protein in poultry feed. India is the largest supplier of Soyabean meal to Pakistan. In 1999-2000, the total value of Soyabeam meal import amounted to $20.11 million. On an average, reputed feed mills consume 12% Soyabean meal in the total dietary ingredients of the poultry feed, which forms about 20% of total raw material cost. The import of Soyabean meal is subject to 10%. A relief of 3.5% is allowed on import from countries of SAARC origin.Source: SMEDA

Fishmeal is also used as the feed in commercial poultry farms. Fish being in abundance in Pakistan’s marine waters and in-land water tracts, fish meal industry is rather developed in the country. Dozens of fishmeal plants not only meet the requirements of local poultry sector, but also a sizeable volume of fishmeal is exported. So, Pakistan has self-reliance in case of poultry feeds.

142


b) Duty on import of poultry raw material

Sr. no. Item of import HS code Import duty Concessional rate

01 Soyabean meal 2304.0000 35% 31% (SAARC origin)

02Grandparent day-old chicks

0105.1190 15% -

03 Anticoccidials 3003.2000 25% 10% (on regd. items)04 Vet. medicines/vaccines 3003.2000 25% 10% (on regd. items)05 Disinfectants 3808.4019 25% -06 Vitamins 2936.0000 10% -07 Growth promoters 3003.2000 10% -08 Amino acids 2922.4100 10% -09 Other chemicals - 35% -

Source: SMEDA


a) Veterinary services

Pakistan has somewhat satisfactory network of veterinary services. Major role is of government veterinary centers. Government services are delivered through a vast network of veterinary dispensaries, hospitals, centers, mobile units and livestock farms. These centers employ a large number of professionals and para-veterinary staff. The government veterinary services are delivered on subsidized rates and the service charges are very nominal. Source: Dawn, Jan. 22, 2001


a) Sanitary and phytosanitary (SPS) conditions at slaughter houses

As non-compliance to the sanitary and phytosanitary regulations of WTO deprives Pakistan’s livestock products of the benefits of the world trade order. Pakistani exports have suffered due to the absence of modern meat processing plants in the country. There are about the 500 abattoirs in the country. These slaughterhouses are not capacious enough as most of them are located in populated areas. These are old fashioned with unhygienic structures and insufficient carriage facilities for animals being brought from far-off places. Slaughtering is done in the primitive conventional fashion, which results in damage to by-products. There is also lack of essential allied facilities. The quarantine conditions are also not upto the mark.

To increase meat production and bring it to the international standard, the Food Ministry has already taken a number of steps, which include storage facility at the airport for meat exporters and setting up of quarantine laboratories in Karachi and Lahore. Furthermore, a modern slaughtering house is going to commence its activities in August 2002. The $ 0.8 million worthy, most modern semiautomatic slaughterhouse has been constructed with cooperation of Livestock Sector Development Project of ADP. The slaughterhouse having separate sections for slaughtering sheep, goat and cow is equipped with latest equipment and will open up a new venue for export of meet and beef in the country besides improving environmental conditions and local supply of hygienic meet.

143


The set up of a modern meat processing plant at Lahore is also underway through a grant-in-aid from Japan. The authorities also have plans to modify the existing slaughterhouses.

Source: http://lists.isb.sdnpk.org/pipermail/health-list/2001-February/000306.html and http://www.pakissan.com/2002/english/news/july/modern.slaughterhouses.shtml

b) Quarantine conditions and ban-lift by Middle East countries

The government of United Arab Emirates (UAE) lifted the ban on the export of Pakistani meat in May 2002. The ban was imposed in the middle of 2000 on quarantine grounds. A three-member technical delegation from the UAE visited Pakistan from March 11 to 16, 2002 and inspected various slaughter houses and quarantine facility in Islamabad, Lahore and Karachi. The UAE lifted the ban on positive report of the inspection team. The Ministry of Agriculture and Fisheries, UAE has allowed three Pakistani companies to export meat. They are Zenith Associates, Lahore, M Artal Chicken Slaughter House, Lahore and P. K. Livestock & Meat Company, Karachi. Smilarly Saudi Arabia has already lifted ban in the start of 2002. These steps show that there has been gradual improvement in sanitation and quarantine condition in Pakistan.Source: http://www.jang.com.pk/thenews/may2002-daily/16-05-2002/business/b6.htm

c) Disease management

Pakistan has many virulent contagious diseases in its livestock population. Though losses due to livestock diseases have not been precisely quantified, estimates are that the total annual loss is around $0.08 billion some 10 percent of the total value of the entire livestock sector in Pakistan.

d) Foot & mouth disease

The FMD is not still widespread disease in Pakistan, still the country cannot be declared as FMD-free country. According to specialist veterinarians, Foot and Mouth (F&M) is a virus with seven main types and a number of sub-types which usually finds cross and pure breeds more susceptible, particularly if they are maintained in cold climate conditions. The long hot season in Pakistan helps in countering the F&M virus. The disease, according to experts, is also linked with intensive cattle farming while Pakistan’s system is predominantly extensive. Pakistan does not have large populations in farms and indeed most stock do not fit the description of cattle farming as breeders usually have extremely small herds. That is a protection against the outbreak of major diseases among cattle in Pakistan.

e) Rinderpest disease

There is growing confidence that Asian rinderpest is now limited to the Indus River buffalo tract of Sindh Province in Pakistan. Rinderpest in Pakistan was reported and confirmed by laboratory tests in buffalo herds close to Karachi in 2000. However, PRA-based epidemiological investigations in Pakistan in September 2001 provided strong evidence that rinderpest was present at that time in the buffalo population of northern Sindh Province.

In 2000/2001 a thorough survey of almost 20,000 cattle disclosed only 0.25% rinderpest positive reactions. Similarly a survey conducted in Balochistan, NWFP, Northern Areas and Jammu and Kashmir in 2001 found 0.3% rinderpest positive reactions.

144

http://lists.isb.sdnpk.org/pipermail/health-list/2001-February/000306.html


Rinderpest eradication in Pakistan is now the focus of an intensive national programme supported by FAO and the European Union. A meeting of Federal and Provincial Secretaries of Agriculture, the Federal Animal Husbandry Commissioner and Directors of Livestock/Veterinary Services, held in Islamabad in January 2002, defined and unanimously endorsed a national strategy for rinderpest eradication which is being implemented.Source: http://www.pakissan.com/allabout/livestock/rinderpest.shtml

Pakistan’s exports to European Union was suffered after the outbreak of Rinderopest disease throughout the world. European Union, in January 2001, granted $1.6 million for livestock disease control project. This was in addition to another $14.47 million project aimed at protecting the 44 million cattle and buffalo population from Rinderpest Disease.

Until rinderpest is finally eradicated and freedom is assured by appropriate studies, the risk of rinderpest resurgence, however low, will continue to demand vigilance and emergency preparedness in the country.


a) Research and development

As far as the formal training and research & development are concerned, Pakistan has a good network of institutes/departments that are engaged in delivering intensive education and training. Following is the list of important agricultural training and research & development institutes of Pakistan:

Pakistan Agricultural Research Council (PARC).

National Agricultural Research Centre.

Animal Sciences Institute.

Agricultural Communication Research Institute.

Himalayan Agricultural Research Institute.

Karakoram Agricultural Research Institute for Northern Areas.

Agricultural Economics Research Units.

Pakistan Council of Scientific and Industrial Research (processing research).

Nuclear Institute for Agriculture and Biology (NIAB), Faisalabad.

Atomic Energy Agricultural Research Centre (AEARC), Tandojam.

Ayub Agricultural Research Institute, Faisalabad.

Fodder Research Institute, Sargodha.

Barani Agricultural Research Institute, Chakwal.

Arid Zone Research Institute, Bhakkar.

Animal Nutrition Centre, Lahore.

National Institute for Biotechnology And Genetic Engineering (IBGE), Faisalabad.

Diagnostic Laboratories, Lahore.

Directorate of Livestock Farms, Lahore.

145


Research Institute of Psychology, Animal Reproduction, Khaipur.

Livestock Production Research Institute, Bahadur Nagar, Okara.

Livestock Production Research Institute, Kheri Murat, Barani.

Punjab Poultry Research Institute, Rawalpindi.

Veterinary Research Institute, Lahore.

Agricultural Research Institute, Tandojam.

Poultry Production Research Station, Korangi, Karachi.

Livestock and Dairy Development Department, Peshawar.

Beef Production Research Centre, Sibbi.

Disease Investigation Laboratory, Quetta.

Veterinary Research Institute, Quetta.

Faculty of Animal Husbandry, University of Agriculture, Faisalabad.

Faculty of Veterinary Science, University of Agriculture, Faisalabad.

College of Veterinary Sciences, Lahore.

Faculty of Animal Husbandry and Veterinary Science, Sindh Agricultural University, Tandojam.

Faculty of Animal Husbandry, North West Frontier Province Agricultural University.

8. Exports

a) Export of meat items

Code Commodity

2000-01 1999-00

000 USD% of total

meat export

000 USD% of total

meat export

0111100 Meat bovine fresh/chilled with bone 344 6.71 895 14.810111200 Meat bovine fresh/chill boneless 1 0.02 8 0.130112100 Meat bovine frozen with bone 13 0.26 8 0.140112200 Meat bovine frozen boneless 7 0.13 0 0.000121100 Meat of sheep, frozen or chilled 855 16.66 229 3.790121200 Meat of sheep f 50 0.98 89 1.470121300 Meat of goat fresh, chilled, frozen 3377 65.82 4665 77.170123100 Poultry not in pieces frozen or chilled 17 0.34 28 0.460123200 Poultry not in pieces f 0 0.01 0 0.000125600 Edible offal sheep, etc, f 0 0.00 8 0.130129300 Snail (other than sea snails) 0 0.00 6 0.100129900 Other meat edible offal frozen or chilled 9 0.17 0 0.000168100 Meat of bovine animals salted 233 4.54 109 1.810176000 Meat offal bovine preparations preserved nes 223 4.34 0 0.000179000 Other prepared, preserved meat or offal 1 0.01 0 0.00

Total 5130 100.00 6045 100.00Source: Foreign Trade Statistics of Pakistan, 2000-01

146


Meat export is a seasonal activity. A little before and after holy month Ramadaz, meat requirements in Gulf States increases manifold and provides an opportunity even to small traders to earn some foreign exchange.Source: Business Recorder Nov. 18, 2001

The decline in the exports in 2000-01 is basically due to import ban from by UAE on quarantine grounds. The ban has been lifted in May 2002.

b) Export- five year comparison

Year 2000-01 1999-00 1998-99 1997-98 1996-97

Volume (thousand tons) 3.27 3.92 n.a. 0.036 0.20Value (thousand USD) 5130 6045 1532 36.33 174.22


c) Major export items

Code Commodity

2000-01 1999-00

000 USD%of total

meat export

000 USD%of total

meat export

0111100 Meat bovine fresh/chilled with bonebone 344 6.71 895 14.810121100 Meat of sheep, frozen or chilled 855 16.66 229 3.790121300 Meat of goat fresh, chilled, frozen 3377 65.82 4665 77.170168100 Meat of bovine animals salted 233 4.54 109 1.810176000 Meat offal bovine preparations preserved nes 223 4.34 0 0.00


d) Major export markets

Code Commodity Major markets (share-wise)

0111100 Meat bovine fresh/chill with bone

OmanSaudi Arabia QatarDubai

0121100 Meat of sheep, frozen or chilledOmanQatarSaudi Arabia

0121300 Meat of goat fresh, chilled, frozen

OmanBahreinSaudi ArabiaQatarHong Kong

168100 Meat of bovine animals saltedOmanSaudi ArabiaBahrein

0176000 Meat offal bovine preparations preserved nesHong KongSaudi ArabiaChina


147


e) Export prices (2000-01)

Code Commodity Price (USD/Kg) in 2000-01

0111100 Meat bovine fresh/chilled with bone 1.370111200 Meat meat bovine fresh/chill boneless 1.790112100 Meat bovine frozen with bone 1.230112200 Meat bovine frozen boneless 1.670121100 Meat of sheep, frozen or chilled 1.430121200 Meat of sheep frozen 1.480121300 Meat of goat fresh, chilled, frozen 1.640123100 Poultry not in pieces frozen or chilled 1.540123200 Poultry not in pieces frozen 1.000125600 Edible offal sheep, etc, frozen na0129300 Snail (other than sea snails) na0129900 Other meat edible offal frozen or chilled 1.440168100 Meat of bovine animals salted 1.480176000 Meat offal bovine preparations preserved nes 1.56017900 Other prepared, preserved meat or offal 3.17



10. Export channels

a) Marketing channels for mutton/beef

Grower/farm Wholesaler Slaughterhouse middleman Retailer Consumer(Domestic consumption)

Grower/farm Slaughterhouse middleman Processor/Exporter Importer(Exports)

b) Marketing channels for mutton/beef

Poultry farm Middleman Retailer Consumer(Domestic consumption)

Poultry farm Processor/exporter Importer(Exports)

c) Major exporters

Following list indicates some of the major exporters of meat:

Zenith Associates, Lahore.

M Artal Chicken Slaughter House, Lahore.

P K Livestock & Meat Company, Karachi.

Be Be Jan, Lahore.

148


11. Trade promotion

a) Trade promotion

Following agencies/departments are also actively engaged in trade promotion of fruits both on national and international level.




Poultry Association of Pakistan

EPB occasionally arranges to take exporters delegations to internationally arranged trade exhibitions to present Pakistani produce.


participation in international trade fairs/shows,

invitation to international buyers for visit,

seminars and workshops to motivate the traders to extend their activities to international markets.

12. Conclusions and recommendations

Encourage establishment of export-oriented abattoirs in private sector.

Refurbishment of existing slaughterhouses.

Creation of disease free zones for export certification.

Removal of restrictions on prices of livestock products.

Eradication of diseases of economic importance such as Rinderpest, Foot and mouth disease and Haemorrhagic Septicemia, etc.

Provision of funds for expanding cross breeding programmes. It will involve import of exotic germ plasm of high producing breeds such as Holstein Friesian/Jersey.

Improvement of hygien and sanitation and the handling of by-products in munciple slaughterhouses.

149


Training of butchers and functional staff.

Promotion of vertically integrated fattening and slaughtering facilities.

Better feed utilization and increase in overall feed availability, mainly from increased fodder crop yields.

Increase in supply of semen associated with changes in herd and flock composition, which will further improve productivity.

Source: The Nation, Aug. 16, 2001

The cattle farming must be made an industry in which the scientists, cattle breeders and farmers work in close liaison.

Withdrawal of 35% regulatory duty on import of Soyabean meal, 15% duty on import of grandparent day-old chicks, 25% duty on import of anti-coccidials, medicines/vaccines & disinfectants, 10% duty on import of vitamins, growth promoters and amino acid.

Lifting of ban on serving meals on occasion of marriages.

150


DEMAND SURVEY

HS Chapter 04 – Dairy products, bird’s eggs, natural honey

I. INTRODUCTION

1. Products under the survey

All items in Groups 022, 023, 024, 025 and item no. 0616000 of Group 061 of SITC (Chapter 04 of HS, entitled as ‘Dairy Products, Bird’s Eggs and Natural Honey’) have been covered in this study.

2. SITC and HS codes

In Pakistan, there are Pakistan Standard Trade Classification (PSTC) that corresponds to the Standard International Trade Classification (SITC) of the UN Statistical Office. In 1973, the Customs Cooperation Council (CCC) had developed a Harmonized Commodity Description and Coding System (HS) and, based on HS headings, the UN Statistical Office produced the third revision of SITC. The present PSTC system is based on that third revision of SITC. SITC and HS codes of the items covered in the study are as under:

SITC Item HS code

0221201 Milk contain fat >1% to 6% 0401.200222100 Milk solid contain fat <1.5% to 5% 0402.100222201 Milk solid contain fat > 1.5% 0402.210222202 Cream solid contain fat >1.5% 0402.210222301 Milk not solid or sweet 0402.910222302 Cream not solid or sweet 0402.910222401 Milk preservd. concent/sweetened 0402.990222402 Cream preservd. concent/sweetened 0402.990223101 Yogurt sweetened 0403.100223102 Yogurt not sweetened 0403.100223201 Butterkilk curdled milk ferment 0403.900223209 Other ferment acid milk/cream 0403.900224102 Whey preserv concent sweeten 0404.100224900 Products of natural milk nes 0404.900230001 Butter, canned 0405.000230002 Butter, fresh 0405.000241000 Grated or powdered milk cheese 0406.200242000 Proces chees not grated/powder 0406.30

151


SITC Item HS code

0243000 Blue veined cheese 0406.400249101 Fresh cheese 0406.100249102 Curd 0406.100249900 Other cheese and curd 0406.900251000 Egg in shell fresh preserv cooked 0407.000252100 Bird eggs dried 0408.110252200 Bird eggs other than dried 0408.190616000 Natural honey 0409.00


Total imports of Pakistan – $10,398 million.Import of dairy products, birds’ eggs and natural honey – $12.41 million.Share of dairy products, birds’ eggs and natural honey in total imports – 0.12%.

Total exports – $8940 million.Export of dairy products, birds’ eggs and natural honey – $3.42 million.Share of dairy products, birds’ eggs and natural honey – 0.038%.Source: Foreign Trade Statistics of Pakistan 2000-01

4. Specific objectives of the survey

The principal objective of the survey is to provide comprehensive information on the market for Dairy Products, Bird’s Eggs and Natural Honey’ in Pakistan, with a view to assisting potential suppliers of these products/commodities in taking advantage of existing trade opportunities.

In addition to describing market characteristics for the benefit of potential suppliers in other target countries, the survey also aims at analyzing the existing constraints in the concerned import sector and at formulating recommendations for action by the government and other agencies/authorities having development responsibilities.

5. Methodology

The study is based upon desk research.The following sources were approached to seek data and information:

1. Lahore Chamber of Commerce & Industry (LCCI).

2. Export Promotion Bureau (EPB).

3. Small & Medium Enterprises Development Authority (SMEDA).

All relevant publications were referred to, in order to have official figures. These include:

1. Economic Survey of Pakistan.

2. Foreign Trade Statistics of Pakistan 2000-01 & 1998-99.

3. Custom Duty Handbook.

4. Export Commodities of Pakistan 1999-00.

5. Digest of Industrial Sectors 2000-01.

152


II. SUMMARY OF CONCLUSIONS & RECOMMENDATIONS


All items in Groups 022, 023, 024, 025 and item no. 0616000 of Group 061 of SITC (Chapter 04 of HS, entitled as ‘Dairy Products, Bird’s Eggs and Natural Honey’) have been covered in this study.

Share of dairy products, birds’ eggs and natural honey in total imports – 0.12%.Share of dairy products, birds’ eggs and natural honey in total imports – 0.038%.

2. Production of raw milk

Pakistan is the fifth largest milk producing country in the world. Most of the milk is produced by the owners of little number of cows. About 67 percent of Pakistan’s population lives in rural areas and is engaged in farming. An average farmer has one to four buffaloes and one cattle at least. The produce and sell milk to enhance their household income. The specialized production of milk on commercial scale has not been established.

Cows and buffaloes are major sources of milk. The milk produced by buffaloes constitutes about 70% of total milk.

Milk processing industry is quite a new industry in Pakistan. There are quite a few industries which process milk and only 2 percent of total milk production is processed.

Production vol. 2000-01 (000’ Kgs) Last five year average growth rate (%)

26,284 2.75

3. Production of processed milk and other dairy products

Milk processing industry is quite limited in Pakistan. Due to lower demand of processed milk/dairy products, only a few industries are set up in Pakistan. The figures of production of milk dairy products are not available.

4. Production of birds’ eggs

Information and data are not available.

5. Production of natural honey

Pakistan is self sufficient in the production of honey. A good number of bee-keeping farms are engaged in its production. Generally, natural honey is sold without any brand name. There has also been common practice of adulteration, so the people have a trend of purchasing branded honey. Langnese is the pioneer brand which have been imported for many years and maintains its market leadership. Now, some local brands are also available. However, Langnese is preferred owing to its reliable quality.

The figures of production of natural honey is not available.

153


6. Import volume and growth rate – dairy products, birds’ eggs and natural honey

CommodityImport vol. 2000-01

(000’ Kgs)Last five year average

growth rate (%)Dairy products, birds’ eggs and natural honey

12,410 6%

7. Export volume and growth rate – dairy products, birds’ eggs and natural honey:

CommodityExport vol. 2000-01

(000’ Kgs)Last five year average

growth rate (%)Dairy products, birds’ eggs and natural honey

3,423.22 47.48

8. Apparent consumption of dairy products, birds’ eggs and natural honey

As the production figures of the products under study are not available, the consumption figures cannot be derived.

9. Import duties and taxes

Dairy products: 20-30%.Birds’ eggs: 10-20%.Natural honey: 30%.

Sales tax dairy products, birds’ eggs and natural honey: 15% if sales are made to registered customer, 18% if sales are made to non-registered customer

10. Basis of assessment

The consignments are assessed on the basis of relative ITP (Import Trade Price).

11. Import channels

Generally the imports are made through sea.

Exporter through Karachi Sea Port Importer or through dry port

154


III. MAIN REPORT

1. Domestic milk producing industry

Pakistan, being an agricultural country is self sufficient in the production of milk. It is the basic raw material of Pakistan’s dairy industry.

The dietary habits and agricultural significance of milk and dairy products in the diets of the population of Pakistan suggests that the demand for milk and dairy products should increase as income increases.

Pakistan is the fifth largest milk producing country in the world. Most of the milk is produced by small holders. About 67 percent of Pakistan’s population lives in rural areas and is engaged in farming. An average farmer has one to four buffaloes and one cow at least. They produce and sell milk to enhance their household income. The specialized production of milk on commercial scale has not been established.

Pakistan is a low cost producer of milk primarily because cattle are fed on crop residues and natural herbage.

Cows and buffaloes are major sources of milk. The milk produced by buffaloes constitutes about 70% of total milk.

As against an annual average output of 3500 to 5000 litres per animal in major milk producing countries, in Pakistan it is just 600 litres per animal.

Milk processing industry is quite a new industry in Pakistan. There are quite a few industries which process milk and only 2 percent of total milk production is processed. Source: The News- August 06, 2001/The Nation- August 13, 2001

2. Production volume of milk

Year

1996-97 1997-98 1998-99 1999-00 2000-01 Average

growth rate (%)

000’tons

000’tons

Growth rate (%)

000’tons

Growth rate (%)

000’tons

Growth rate (%)

000’tons

Growth rate (%)

Production (000’ tons)

23,580 24,215 2.69 24,876 2.73 25,566 2.77 26,284 2.81 2.75


155


3. Projection of milk production

Productionin 2000-01

Average growth

rate (%)

Production projection (000’ tons)

2001-02 2002-03 2003-04 2004-05 2005-06

26,284 2.75 27,007 27,749 28,513 29,297 30,102

Steady increase of 2.755, which is not very encouraging for the industry.

4. Production of processed milk and other dairy products

Milk processing industry is quite limited in Pakistan. Only a few industries are set up in Pakistan. Easy availability of raw milk to the customers and specific eating habits of Pakistanis squeezes the demand of processed milk products. However, the demand is having an upward trend in cities as the awareness of dietary requirements and hygiene coupled the sense of convenience is increasing.

The figures of production of milk dairy products are not available.

156


5. Production of birds’ eggs

Information and data are not available.

6. Production of natural honey

Pakistan is self sufficient in the production of honey. A good number of bee-keeping farms are engaged in its production. Generally, natural honey is sold without any brand name. There has also been common practice of adulteration, so the people have a trend of purchasing branded honey. Langnese is the pioneer brand which have been imported for many years and maintains its market leadership. Now, some local brands are also available. However, Langnese is preferred owing to its reliable quality.

The exact figure of production of natural honey is not available.

7. Import value of dairy products, birds’ eggs and natural honey and the share of individual items (two years):

SITC Item

2000-01 1999-00

000 USD

% of total dairy, birds’

eggs and honey import

000 USD



0221201 Milk contain fat >1% to 6% 0 - 240.36 1.140222100 Milk solid contain fat <1.5% to 5% 1,732.01 13.96 3,197.28 15.210222201 Milk solid contain fat > 1.5% 8,045.22 64.83 15,224.30 72.450222202 Cream solid contain fat >1.5% 99.78 0.80 69.72 0.330222301 Milk not solid or sweet 5.19 0.04 53.55 0.250222302 Cream not solid or sweet 101.71 0.82 148.56 0.710222401 Milk preservd. concent/sweetened 135.59 1.09 186.98 0.890222402 Cream preservd. concent/sweetened 18.37 0.15 24.08 0.110223101 Yogurt sweetened - - 7.53 0.040223102 Yogurt not sweetened 6.93 0.06 6.14 0.030223201 Butterkilk curdledmilkferment - - 0.02 0.000223209 Other ferment acid milk/cream - - 1.36 0.010224102 Whey preserv concent sweeten 225.99 1.82 59.73 0.280224900 Products of natural milk nes 20.66 0.17 44.93 0.210230001 Butter, canned 155.29 1.25 163.18 0.780230002 Butter, fresh 348.08 2.80 100.28 0.480241000 Grated or powdered milk cheese 23.13 0.19 19.20 0.090242000 Proces chees not grated/powder 107.36 0.87 388.94 1.850243000 Blue veined cheese 4.18 0.03 - 0.00

157


SITC Item

2000-01 1999-00

000 USD



000 USD



0249101 Fresh cheese 182.92 1.47 224.56 1.070249102 Curd 13.53 0.11 13.98 0.070249900 Other cheese and curd 382.60 3.08 102.35 0.490251000 Egg in shell fresh preserv cooked 294.18 2.37 36.40 0.170252100 Bird eggs dried 22.45 0.18 42.40 0.200252200 Bird eggs other than dried - - 2.27 0.010253000 Egg albumin 171.46 1.38 356.98 1.700616000 Natural honey 313.33 2.52 299.39 1.42

Total 12,409.98 100.00 21,014.48 100.00Source: Foreign Trade Statistics of Pakistan 2000-01

158


8. Import volume

Figures in thousand kgs

SITC Item Volume 2000-01 Volume 1999-00

0221201 Milk contain fat >1% to 6% - 184.20222100 Milk solid contain fat <1.5% to 5% 1,305.6 2,665.80222201 Milk solid contain fat > 1.5% 5,795.4 11,871.60222202 Cream solid contain fat >1.5% 62.7 50.00222301 Milk not solid or sweet 3.0 38.40222302 Cream not solid or sweet 66.9 169.10222401 Milk preservd. concent/sweetened 176.7 197.80222402 Cream preservd. concent/sweetened 17.7 17.30223101 Yogurt sweetened - 11.00223102 Yogurt not sweetened 7.7 7.90223201 Butterkilk curdledmilkferment - 0.00223209 Other ferment acid milk/cream - 1.50224102 Whey preserv concent sweeten 296.0 93.80224900 Products of natural milk nes 24.0 22.20230001 Butter, canned 72.2 69.40230002 Butter, fresh 149.9 48.30241000 Grated or powdered milk cheese 6.0 5.00242000 Proces chees not grated/powder 32.9 69.00243000 Blue veined cheese 1.5 -0249101 Fresh cheese 57.3 68.30249102 Curd 97.8 97.00249900 Other cheese and curd 71.1 59.70251000 Egg in shell fresh preserv cooked 114.4 18.60252100 Bird eggs dried 5.6 10.70252200 Bird eggs other than dried - 1.00253000 Egg albumin 51.8 90.10616000 Natural honey 191.2 188.6

Total 8,695.1 16,077.6Source: Foreign Trade Statistics of Pakistan 2000-01

159


9. Import and import growth trend of dairy products, bird’s eggs and natural honey (five years)

SITC Item1996-97 1997-98 1998-99 1999-00 2000-01 Average

growth ratr

000’USD

000’USD

Growth rate (%)

000’USD

Growth rate (%)

000’USD

Growth rate (%)

000’USD

Growth rate (%)

0221100 Milk containing fat < 1%

67

65

(3)

11

(83) -

(100.0)

- -! -

0221201 Milk contain fat >1% to 6% -

- -

- -

240.4 -

-

(100) -

0221300 Milk containing fat > 6% -

41 -

34

(17)

-

(100.0)

- - -

0222100Milk solid contain fat <1.5% to 5%

1,098

2,007

83

5,398

169

3,197.3

(40.8)

1,732

(46) 41

0222201 Milk solid contain fat > 1.5%

8,882

12,530

41 10

,516

(16) 15,2

24.3

44.8

8,045

(47) 6

0222202Cream solid contain fat >1.5%

95

97

3

804

729

69.7

(91.3)

100

43 171

0222301 Milk not solid or sweet

97

54

(44)

23

(57)

53.5 1

29.8

5

(90) -15

0222302 Cream not solid or sweet

25

41

63

236

473 1

48.6 (

37.2)

102

(32) 117

0222401Milk preservd. Concent/sweetened

119

60

(49)

156

159

187.0

19.5

136

(27) 26

0222402Cream preservd. Concent/sweetened

-

13 -

-

(100)

24.1 -

18

(24) -

0223101 Yogurt sweetened

20

7

(65) -

(100)

7.5 -

-

(100) -

0223102 Yogurt not sweetened -

- -

-

-

6.1 -

7

13 -

0223201Butterkilk curdledmilkferment

12

-

(100)

-

-

0.0 - -

(100) -

0223209Other ferment acid milk/cream

20

-

(100)

0

-

1.4 4,0

00.0 -

(100) -

0224102Whey preserv concent sweeten

34

69

101

88

28

59.7

(32.2)

226

278 94

0224900 Products of natural milk nes

18

8

(57) -

(100)

44.9 -

21

(54) -

0230001 Butter, canned

128

454

254

463

2 1

63.2 (

64.7)

155

(5) 47

0230002 Butter, fresh

167

94

(44)

60

(36) 1

00.3

67.9

348

247 59

0241000Grated or powdered milk cheese

25

25

0

70

177

19.2

(72.5)

23

20 31

0242000Proces chees not grated/powder

206

295

43

259

(12)

388.9

50.1

107

(72) 2

0243000 Blue veined cheese -

- -

- -

- -

4 - -

0249101 Fresh cheese

53

37

(30)

121

226 2

24.6

85.4

183

(19) 66

0249102 Curd

13

3

(74)

10

206

14.0

38.0

14

(3) 42

0249900 Other cheese and curd

48

135

183

52

(62) 1

02.4

98.5

383

274 123

0251000Egg in shell fresh preserv cooked

9

-

(100)

300

-

36.4 (

87.9)

294

708 -

0252100 Bird eggs dried 5

24

333

45

91

42.4

(5.8)

22

(47)

93

0252200 Bird eggs other than dried -

0 -

-

(100)

2.3 -

-

(100) -

0253000 Egg albumin

451

230

(49)

247

8 3

57.0

44.3

171

(52) -12

0616000 Natural honey

174

404

132

318

(21) 2

99.4

(5.8)

313

5 27

Total

11,766 1

6,692

42 19,

211

15 21,01

4.5

9.4

12,410

(41)

6

160


Decreased in the last year. But before that there was a steady increase; on the whole the net affect is positive, the import value is increasing.

10. Imports prices (based on the most recent import during 1999 and 2001)

SITC Item Import price (USD/KG)0221201 Milk contain fat >1% to 6% 1.310222100 Milk solid contain fat <1.5% to 5% 1.330222201 Milk solid contain fat > 1.5% 1.390222202 Cream solid contain fat >1.5% 1.590222301 Milk not solid or sweet 1.730222302 Cream not solid or sweet 1.520222401 Milk preservd. concent/sweetened 0.770222402 Cream preservd. concent/sweetened 1.040223101 Yogurt sweetened 0.680223102 Yogurt not sweetened 0.900223201 Butterkilk curdledmilkferment 0.610223209 Other ferment acid milk/cream 0.930224102 Whey preserv concent sweeten 0.760224900 Products of natural milk nes 0.860230001 Butter, canned 2.150230002 Butter, fresh 2.320241000 Grated or powdered milk cheese 3.860242000 Proces chees not grated/powder 3.270243000 Blue veined cheese 2.790249101 Fresh cheese 3.190249102 Curd 0.140249900 Other cheese and curd 5.380251000 Egg in shell fresh preserv cooked 2.57

161


SITC Item Import price (USD/KG)0252100 Bird eggs dried 4.010252200 Bird eggs other than dried 2.270253000 Egg albumin 3.310616000 Natural honey 1.64


11. Sources of imports

0221201-MILK CONTAIN FAT >1% TO 6%

1. --Belgium2. --Dubai3. --Irish Republic4. --Switzerland

0222100-MILK SOLID CONTAIN FAT <1.5% TO 5%

1. --Australia2. --Austria3. --Belgium4. --China5. --Denmark6. --Dubai7. --Germany8. --France9. --Indonesia10. --Irish Republic11. --Netherlands12. --New Zealand13. --Poland14. --Slovenia15. --Lithuania16. --Ukraine17. --Russian

Federation18. --Singapore19. --Swedwn20. --USA21. --UK

0222201-MILK SOLID CONTAIN FAT > 1.5%

1. --Australia2. --Canada3. --China4. --Denmark5. --Dubai6. --Germany7. --Finland8. --France9. --Indonesia10. --Irish Republic11. --Luxembourg12. --Nepal13. --Netherlands14. --New Caledonia

etc 115. --Philippines16. --Poland17. --Lithuania18. --Russian

Federation19. --Singapore20. --Sri Lanka21. --Sweden22. --Switzerland23. --UK

0222202-CREAM SOLID CONTAIN FAT >1.5%

1. --Belgium2. --Dua3. --Irish Republic4. --New Zealand5. --Switzerland

0222301-MILK NOT SOLID OR SWEET

1. --Dubai2. --Germany3. --Singapore

0222302-CREAM NOT SOLID OR SWEET

1. --Germany2. --Indonesia3. --Netherlands4. --New Zealand5. --Singapore

0222401-MILK PRESERVD. CONCENT/SWEETENED

1. --Belgium2. --Denmark3. --Dubai4. --France5. --Indonesia6. --Irish Republic7. --Netherlands8. --Singapore9. --Spain

0222402-CREAM PRESERVD. CONCENT/SWEETENED

1. --Denmark2. --Dubai3. --Singapore

0223101-YOGURT SWEETENED

1. --Spain2. --USA

0223102-YOGURT NOT SWEETENED

1. --Spain0223201-BUTTERMILK CURDLEDMILK FERMENT

1. --UK0223209-OTHER FERMENT ACID MILK/CREAM

1. --UK0224102-WHEY PRESERV CONCENT SWEETEN

1. --France2. --Netherlands3. --New Zealand4. --Turkey

0224900-PRODUCTS OF NATURAL MILK NES

1. --Afghanistan 2. --France3. --UK

0230001-BUTTER, CANNED

1. --Denmark2. --Dubai3. --France4. --Irish Republic5. --Malaysia6. --New Zealand7. --Singapore8. --USA

0230002-BUTTER, FRESH1. --Austrlia2. --Denmark3. --Dubai4. --France5. --Netherlands6. --New Zealand7. --Singapore8. --USA

0241000-GRATED OR POWDERED MILK CHEESE

1. --Denmark2. --France3. --New Zealand4. --UK

0242000-PROCES CHEES NOT GRATED/POWDER

1. --Austrlia2. --Austria3. --Denmark4. --Dubai5. --Germany6. --France7. --New Zealand8. --UK

0243000-BLUE VEINED CHEESE

1. --Dubai0249101-FRESH CHEESE

1. --Australia2. --Canada3. --Denmark4. --Dubai5. --France6. --Netherlands7. --New Zealand8. --UK

0249102-CURD1. --Afghanistan 2. --Iran

0249900-OTHER CHEESE AND CURD

1. --Australia2. --Denmark3. --Dubai4. --New Zealand 5. --Singapore

0251000-EGG IN SHELL FRESH PRESERV COOKED

1. --France2. --Indonesia3. --Iran4. --Malaysia5. --Syria6. --USA

0252100-BIRD EGGS DRIED1. --France

0252200-BIRD EGGS OTHER THAN DRIED

1. --Netherlands Antilles

0253000-EGG ALBUMIN1. --Finland2. --France3. --Hong Kong4. --Netherlands5. --Sweden6. --USA7. --United Kingdom

0616000-NATURAL HONEY1. --Australia2. --Austria3. --Canada4. --China5. --Dubai6. --Germany7. --Netherlands8. --New Zealand9. --USA10. --UK

162


12. Projection of imports for the next five years

Import in 2000-01

Average growth

rate (%)

Import projection (000’ USD)

2001-02 2002-03 2003-04 2004-05 2005-06

12,410 6 13,155 13,944 14,781 15,667 16,607

13. Projected growth rate is of 6% for the next 5 years

14. Export and export growth trend of dairy products, birds’ eggs and natural honey (five years)

SITC Item

1997-98 1998-99 1999-00 2000-01Average growth

rate (%)000’USD

000’USD

Growth rate (%)

000’USD

Growth rate (%)

000’USD

Growth rate (%)

0221201Milk contain fat >1% to 6% 6.6 4.8 -27.27

135.41 2720.96 19.04 (85.94) 869.25

0222100Milk solid contain fat <1.5% to 5% - - - - - 24.96 - -

0222201Milk solid contain fat > 1.5% - - - - - 61.97 - -

0222301 Milk not solid or sweet 143.6 - -100.00 - - 83.18 - -0222302 Cream not solid or sweet - - - - - 127.96 - -

0222401Milk preservd. concent/sweetened - 45.9 -

151.97 231.10 230.90 51.93 -

0222402Cream preservd. concent/sweetened - - - - - 21.81 - -

0224900Products of natural milk nes 350.4 1014.2 189.44

578.72 -42.94 742.35 28.27 58.26

0230003 Butter oil (ghee) - - - 25.8

7 - 60.05 132.12 -

0251000Egg in shell fresh preserv cooked 212 7.3 -96.56

282.52 3770.15 865.26 206.26 1293.28

0252100 Bird eggs dried 319.3 - -100.00 - - - - -

0253000 Egg albumin 319.3 67.8 -78.77 26.4

3 -61.01 272.85 932.18 264.14

0616000 Natural honey 9.6 - -100.00 1,369.8

7 - 912.89 (33.36) -

Total 1360.8 1140 -16.23 2,570.80 125.51 3,423.22 33.16 47.48

Source: Foreign trade statistics of Pakistan 2000-01/Export Commodities of Pakistan 1999-00

163


15. Export projection of dairy products, birds’ eggs and natural honey

Export in 2000-01

Average growth

rate (%)

Export projection (000’ USD)

2001-02 2002-03 2003-04 2004-05 2005-06

3,423.22 47.48 5,048.56 7,445.62 10,980.81 16,194.49 23,883.64

164


16. Export growth rate is very encouraging at 47.48% for the industry for the next 5 years

17. Apparent consumption of dairy products, birds’ eggs and natural honey

As the production figures of the products under study are not available, the consumption figures cannot be derived.

Import licenses for public sector/government undertakings:

Federal and provincial Governments and other authorized public sector departments and other public sector agencies are exempted from export registration.

Importer’s registration criteria:

An individual or firm is registered as a member at a chamber of commerce if he has the following documents/status:

1. National Identity Card.2. A current account at any scheduled bank.3. NTN (National Tax Number) or Trial Registration with Central Board of Revenue/Income

Tax Department.4. Sales Tax Registration Certificate.

165


18. Import duties

HS no. ItemCustoms duty

(ad val.)

0401.1000Milk and cream, not concentrated nor containing added sugar or other sweetening matter, of a fat content, by weight, not exceeding 1%

30%

0401.2000Milk and cream, not concentrated nor containing added sugar or other sweetening matter, of a fat content, by weight, exceeding 1% but not exceeding 6%

30%

0401.3000Milk and cream, not concentrated nor containing added sugar or other sweetening matter, of a fat content, by weight, exceeding 6%

30%

0402.1000Milk and cream, concentrated or containing added sugar or other sweetening matter, in powder, granules or other solid forms, of a fat content by weight, not exceeding 1.5%

20%

0702.1000Milk and cream, concentrated or containing added sugar or other sweetening matter, in powder, granules or other solid forms, of a fat content by weight, exceeding 1.5%

20%

0402.2100Milk and cream, concentrated not containing added sugar or other sweetening matter

20%

0402.2900 Milk and cream, other 20%0403.1000 Yogurt 30%0403.9000 Other fermented or acidified milk and cream 30%0404.1010 Whey Powder 20%0404.1090 Other whey 30%0405.1000 Butter 30%0405.2000 Dairy spreads 30%0405.9000 Other fats and oils 30%0406.1000 Fresh unripened or uncured cheese, including whey cheese, and curd 30%0406.2000 Grated or powdered cheese, of all kinds 30%0406.3000 Processed cheese not grated or powdered 30%0406.4000 Blue veined cheese 30%0406.9000 Other cheese 30%0407.000 Birds’ eggs in shell, fresh, preserved or cooked 10%0408.1100 Egg yolks, dried 20%0408.1900 Egg yolks other 20%0409.0000 Natural honey 30%0410.0000 Edible products of animal origin, not elsewhere specified or included 30%

166


19. Preferential

Exemption on the leviable rates have been allowed on the imports into Pakistan from the SAARC member states (for the least developed countries), if made in the conformity with the SAARC Rules of Origin issued by Ministry of Commerce [SRO No. 374(1)/2001], for the following items:

HS no. Item Exemption on customs duty

0402.1000

Milk and cream, concentrated or containing added sugar or other sweetening matter, in powder, granules or other solid forms, of a fat content by weight, exceeding 1.5%

20% of the leviable rates

0402.2100Milk and cream, concentrated not containing added sugar or other sweetening matter

20% of the leviable rates

0409.0000 Natural honey 30% of the leviable ratesSource: Customs Duty Handbook

20. Other charges on imports

Sales tax: 15% if sales are made to registered customer, 18% if sales are made to non-registered customer

Port handling charges: $0.9/ton appx.D.O. charges charged by the shipping line: Appx. $90 to $ 180 per container depending upon

weight and nature of goods.Source: BIZ Corporation


The consignments are assessed on the basis of relative ITP (Import Trade Price). The concept of ITP value has been introduced in order to discourage the unfair practice of under-invoicing by Pakistani importers. ITP varies from item to item and country to country. In case the ITP has not been already defined, the officer deputed to clear the consignments makes the assessment.

22. Documentary requirements for imports

In order to import an item, commercial invoice, certificate of origin, pre-shipment inspection certificate, insurance certificate are required.

On receiving the purchase order from the importer, the exporter prepares and sends the proforma invoice. On the basis of the proforma invoice, the importer opens L/C. Upon this the exporter makes necessary preparations to export the goods.

167


23. Import channels

Almost entire the import of the relative items is made through sea. The consignments are destined either to Karachi Sea Port or to the dry ports in different cities like Lahore, Sialkot, Multan, etc. If the importer is Lahore- based, he would prefer to receive his consignment at Lahore Dry Port. This not only provides him proximity to the port as well as ease in clearing his goods but also saves him $150 to $500 per container.

Exporter through Karachi Sea Port Importeror through dry port

24. Local marketing channels

Following channel is generally used to market the imported cereal products:

Exporter Importer Retailer outlets CustomerExporter Importer Customer (industrial users)

Mark-up in distribution:

The mark-up at different levels of distribution is as under:

Importer 20% to 100%Retail outlet 15% to 50%Source: Estimates

25. Useful addresses

List of government departments, trade associations and other useful addresses:

Export Promotion Bureau (EPB)5th Floor Block A, Finance & Trade Centre, Shahra-e-Faisal Karachi.Tel. 92-21 9202718

Lahore Chamber of Commerce & Industry11-Shahra-e- Aiwan-e-TijaratLahoreTel. 92-42 6365737-42Fax 92-42 6368854

Small & Medium Enterprise Development Authority(SMEDA)GM Sind , 5th Floor Block A, Finance & Trade Centre, Shahra-e-Faisal Karachi Tel. 92-21 9206491, 9201517Fax 92-21 9206477

168


HEAD-OFFICE MINISTRY OF FOOD, AGRICULTURE AND LIVESTOCKPAK SECRETARIAT BLOCK-A, ISLAMABAD, PAKISTANTel. 92-51 9203307, 92-51 9210351Fax 92-51 9221246

PAKISTAN DAIRY ASSOCIATION 11/19-B, LINK SHAMI ROAD LAHORETel. 042-6680041/6850653Fax 042-6682042

PAKISTAN RESTAURANTS & CATERERS ASSN. LYRIC BAR B.Q., GARDEN ROAD KARACHITel. 92-21 7737738

169


HS Chapter 07 – Edible vegetables and certain roots & tubers

I. INTRODUCTION


All items in Group 054 and items 0561200 to 0561909 of Group 056 of SITC (Chapter 07 of HS, entitled as ‘Edible vegetables and certain roots and tubers’) have been covered in this study.


In Pakistan, there are Pakistan Standard Trade Classification (PSTC) that corresponds to the Standard International Trade Classification (SITC) of the UN statistical office. In 1973, the Customs Cooperation Council (CCC) had developed a Harmonised Commodity Description and Coding System (HS) and, based on HS headings, the UN Statistical Office produced the third revision of SITC. The present PSTC system is based on that third revision of SITC.

SITC Item HS code

0541001 Potatoes fresh or chilled 0701.000541002 Potatoes, seed 0701.000542100 Peas, dry whole 0713.100542200 Chickpeas 0713.200542301 Beans, dry whole 0713.310542302 Red beans 0713.310542303 Kinney beans (lobia) 0713.310542304 Green beans dry 0713.310542305 Green beans split 0713.310542401 Lentiles dry whole 0713.400542402 Lentiles split 0713.400542901 Gram, dry whole 0713.900542902 Gram split 0713.900542903 Mash dry whole 0713.900542906 Black matpe 0713.900542919 Leguminous vegetable dried ns 0713.900544000 Tomatoes, fresh or chilled 0702.000545101 Onion fresh or chilled 0703.100545102 Shallots fresh or chilled 0703.100545201 Garlic 0703.200545202 Leeks 0703.20

170


SITC Item HS code

0545203 Ginger not dried 0703.200545209 Other alliaceous veg fresh/chilled 0703.200545302 Cauliflower fresh or chilled 0704.000545401 Lettuce fresh or chilled 0705.000545402 Chicory roots, fresh or chilled 0705.000545501 Carrot fresh or chilled 0706.000545504 Radish fresh or chilled 0706.000545600 Cucumbers, gherkins fresh or chilled 0707.000545701 Peas fresh or chilled 0708.000545702 Beans 0708.000545903 Pumpkin 0709.100545911 Chillies (green) 0709.600545929 Other vegetables fresh or chilled 0706.900546900 Other veg + mix of veg, cooked or frozen 0710.100547000 Vegetable provisional preserv 0711.00

Source: Foreign Trade Statistics of Pakistan 2000-01/Pakistan Standard Trade Classifications


Total imports of Pakistan – $10398 million.Import of Edible vegetables and certain roots and tubers – $131 million.Share of Edible vegetables and certain roots and tubers in total imports – 1.26%.

Total Exports: $8940 million.Export of Edible vegetables and certain roots and tubers – $36.83 million.Share of Edible vegetables and certain roots and tubers export in total exports – $0.35%.Source: Foreign Trade Statistics of Pakistan 2000-01


The principal objective of the survey is to provide comprehensive information on the market for edible vegetables and certain roots and tubers in Pakistan, with a view to assisting potential suppliers of these products/commodities in taking advantage of existing trade opportunities.


171


5. Methodology

Most of the study is based upon desk research, though some interviews have also been carried out to get certain information.

The following sources were approached to seek data and information:

1. Lahore Chamber of Commerce & Industry (LCCI)2. Export Promotion Bureau (EPB)3. Small & Medium Enterprises Development Authority (SMEDA)


1. Economic Survey of Pakistan2. Foreign Trade Statistics of Pakistan 2000-01 & 1998-993. Custom Duty Handbook

II. SUMMARY OF CONCLUSIONS & RECOMMENDATIONS


All items lying in Group 054 and items 0561200 to 0561909 of Group 056 of SITC (Chapter 07 of HS, entitled as ‘Edible vegetables and certain roots and tubers’) have been covered in this study.


Share of Edible vegetables and certain roots and tubers in total imports: 1.26%.Share of Edible vegetables and certain roots and tubers export in total exports: $0.35%.

3. Production of edible vegetables and certain roots and tubers

Production in 1999-00 (000’ tons) Average growth rate of last five years (%)

4731.5 5.53

4. Import of edible vegetables and certain roots and tubers

Import in 2000-01 (000’ tons) Average growth rate of last five years (%)

446.70 28

172


5. Export of edible vegetables and certain roots and tubers

Export in 2000-01 (000’ tons) Average growth rate of last five years (%)

191.05 122.32

6. Consumption of edible vegetables and certain roots and tubers

Consumption in 2000-01 (000’ tons) Average growth rate of last five years (%)

5,249 11.44

7. Import duties and other taxes

Import duty: Import duties range from 5% to 20%.Sales tax: 15% if sales are made to registered customer, 18% if sales are made to non-registered customer.



9. Import channels




Following channels are used to market the imported cereal products:

Exporter Importer Wholesaler Retailer CustomerExporter Importer Retailer Customer

11. Recommendations

Pakistan is self-sufficient in the production of most of the vegetables, but still some of the vegetables are produced on small scale. Thus, there has been a constant gap, which is filled by imports. Pakistan is a large market of vegetables and a feasible one as far as imports are concerned.

With 36% average growth rate, the imports of vegetables have seen a constant upward trend. It’s rather a cost sensitive market and the suppliers with lower prices are readily welcomed. Thus the suppliers having the capacity of supplying vegetables with lower prices on regular basis must go ahead confidently.

173


The regulatory duties on vegetables (i.e. 10% to 20%) are fine, but still need more reduction. It will encourage foreign suppliers and local importers. Consequently, the consumption is likely to have more boom.

The suppliers of potatoes, onions, fresh mushrooms and lentils belonging to SAARC countries should get advantage of exemptions in import duties.

The implementation of WTO/GATT will definitely create more opportunities for foreign exporters. Imports are likely to increase. The government must ensure to deliver full benefit of it to the local importers.

174


III. MAIN REPORT

1. Area under vegetable crops

1995-96 1996-97 1997-98 1998-99 1999-00

Area (000’ hectares)


Increase in area

(%)


Increase in area

(%)


Increase in area

(%)


Increase in area (%)

288.6 301.2 4.37 325.2 7.97 333.5 2.55 331.1 -0.72Source: Economic Survey of Pakistan 2001-02

2. Production of vegetables

1995-96 1996-97 1997-98 1998-99 1999-00



Increase in prod

(%)


Increase in prod

(%)5.5275

Increase in prod

(%)


Increase in prod

(%)

Average increase in

production (%)

3846.7 3821.6 -0.66 4372.3 14.41 4805.8 9.91 4731.5 -1.55 5.5275


Not very progressive growth.

175


3. Projected production

Production in 1999-00

Average growth rate of last five

years (%)

Projected production (with 5.53% average growth)

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

4731.5 5.53 4993.15 5269.27 5560.66 5868.17 6192.68 6535.13

4. Import value

SITC Item2000-01 1999-00

000 USD% of total

veg. import000 USD

% of total veg. import

0541001 Potatoes fresh or chilled 143.13 0.109 211.72 0.2180541002 Potatoes, seed 426.15 0.325 351.14 0.3610542100 Peas, dry whole 17,342.26 13.228 14,530.60 14.9560542200 Chickpeas 49,156.04 37.493 24,061.53 24.7660542301 Beans, dry whole 881.39 0.672 1,622.02 1.6690542302 Red beans 2,325.49 1.774 2,310.95 2.3790542303 Kinney beans (lobia) 8,448.84 6.444 5,967.71 6.1420542304 Green beans dry - - 1,400.25 1.4410542305 Green beans split 235.84 0.180 228.39 0.2350542401 Lentiles dry whole 14,073.80 10.735 10,527.76 10.8360542402 Lentiles split 2,599.80 1.983 3,776.83 3.8870542901 Gram, dry whole 1,423.86 1.086 175.47 0.1810542902 Gram split 0.03 0.000 - 0.000

176


SITC Item2000-01 1999-00

000 USD% of total

veg. import000 USD

% of total veg. import

0542903 Mash dry whole 1,536.53 1.172 2,845.89 2.9290542906 Black matpe 11,221.21 8.559 9,012.64 9.2760542919 Leguminous vegetable dried ns 105.36 0.080 478.62 0.4930544000 Tomatoes, fresh or chilled 94.05 0.072 72.32 0.0740545101 Onion fresh or chilled 1,357.03 1.035 1,726.33 1.7770545102 Shallots fresh or chilled - - 9.67 0.0100545201 Garlic 3,322.85 2.534 5,558.84 5.7220545202 Leeks - - 17.28 0.0180545203 Ginger not dried 16,154.83 12.322 12,042.57 12.3950545209 Other alliaceous veg fresh/chilled 0.65 0.000 22.09 0.0230545302 Cauliflower fresh or chilled - - 41.84 0.0430545401 Lettuce fresh or chilled 89.77 0.068 42.72 0.0440545402 Chicory roots, fresh or chilled - - 39.67 0.0410545501 Carrot fresh or chilled 10.07 0.008 2.44 0.0030545504 Raddish fresh or chilled - - 0.33 0.0000545600 Cucumbers, gherkins fresh or chilled 0.40 0.000 - 0.0000545701 Peas fresh or chilled 29.62 0.023 0.90 0.0010545702 Beans - - 0.05 0.0000545903 Pumpkin 4.98 0.004 - 0.0000545911 Chillies (green) 1.04 0.001 45.46 0.0470545929 Other vegetables fresh or chilled 26.70 0.020 5.59 0.006

0546900Other veg + mix of veg, cooked or frozen 30.60 0.023 8.44 0.009

0547000 Vegetable provisional preserv 20.60 0.016 5.80 0.0060548401 Hop cones 30.50 0.023 6.27 0.0060561200 Onion dried cut or in powder 1.61 0.001 - 0.0000561301 Mushrooms, dried 8.16 0.006 4.79 0.0050561909 Other veg and mixtures of veg ns 2.44 0.002 1.96 0.002

Total 131,105.61 100.000 97,156.88 100.000Source: Foreign Trade Statistics of Pakistan 2000-01

177


5. Share of individual items in total import value

SITC Item% of total veg import in

2000-010542200 Chickpeas 37.493 0542100 Peas, dry whole 13.228 0545203 Ginger not dried 12.322 0542401 Lentiles dry whole 10.735 0542906 Black matpe 8.559 0542303 Kinney beans (lobia) 6.444 0545201 Garlic 2.534 0542402 Lentiles split 1.983 0542302 Red beans 1.774

- Others 4.930

Import volume and import growth trend of edible vegetables and certain roots and tubers:

SITC Item 1996-97

1997-98 1998-99 1999-00 2000-01 Average

growth rate

000’ tons

Growth rate (%)

000’ tons

Growth rate (%)

000’ tons

Growth rate (%)

000’ tons

Growth rate (%)

0541001 Potatoes fresh or chilled

7.19

9.90

38

16.47

66

9.16

(44)

7.43

(19)

10

0541002 Potatoes, seed

3.91

7.28

86

0.75

(90)

0.78 4

0.99

27

7

0542100 Peas, dry whole

2.91

19.00

552

43.54

129

77.30

78

97.71

26

196

0542200 Chickpeas

20.18

28.94

43

15.35

(47)

85.90

459

140.03

63

130

0542301 Beans, dry whole

2.33

1.87

(20)

1.64

(13)

5.94

263

3.03

(49)

45

0542302 Red beans

3.68

5.12

39

9.51

86

7.84

(18)

7.25

(7)

25

0542303 Kinney beans (lobia)

22.14

12.81

(42)

14.38

12

20.79

45

27.80

34

12

0542304 Green beans dry

0.39

8.90

2,201

23.02

159

5.78

(75) -

(100)

546

0542305 Green beans split

0.22

3.74

1,618

3.91 5

1.29

(67)

1.62

25

395

178


SITC Item 1996-97

1997-98 1998-99 1999-00 2000-01 Average

growth rate

000’ tons

Growth rate (%)

000’ tons

Growth rate (%)

000’ tons

Growth rate (%)

000’ tons

Growth rate (%)

0542401 Lentiles dry whole

6.75

9.88

46

27.57

179

30.29

10

37.38

23

65

0542402 Lentiles split

8.07

10.54

31

9.34

(11)

10.63

14

7.54

(29) 1

0542500 Broad beans and horse beans

0.02

0.04

69

0.02

(33) -

(100)

- - -

0542901 Gram, dry whole

0.01

0.44

6,422 -

(100)

0.63 -

4.43

600 -

0542902 Gram split

0.00

0.02

1,790 -

(100)

- -

0.00 - -

0542903 Mash dry whole

13.22

16.99

29

14.23

(16)

20.89

47

11.01

(47) 3

0542905 Gwar, whole

0.10

0.02

(82) -

(100)

- -

- - -

0542906 Black matpe

29.89

34.01

14

31.31

(8)

24.16

(23)

26.59

10

(2)

0542907 Gwar, split

0.48 -

(100)

- -

- -

- - -

0542919 Leguminous vegetable dried ns

1.89

2.67

41

0.43

(84)

1.57

265

0.45

(71)

38

0544000 Tomatoes, fresh or chilled

0.84

2.65

214

1.86

(30)

0.88

(52)

1.59

80

53

0545101 Onion fresh or chilled

21.11

39.38

87

42.55 8

33.29

(22)

23.29

(30)

11

0545102 Shallots fresh or chilled

0.01 -

(100)

0.01 -

0.03

390

-

(100) -

0545201 Garlic

0.02

1.66

9,426

29.78

1,697

21.06

(29)

11.23

(47)

2,762

0545202 Leeks

0.03

0.02

(26)

0.21

1,033

0.05

(77) -

(100)

207

0545203 Ginger not dried

23.76

27.99

18

35.01

25

33.87

(3)

36.75 9

12

0545209Other alliaceous veg fresh/chilled

-

0.01 -

-

(100)

0.07 -

0.00

(95) -

0545302 Cauliflower fresh or chilled -

- -

- -

0.15 -

-

(100) -

0545401 Lettuce fresh or chilled

0.01

0.04

774

0.13

198

0.08

(37)

0.08

(7)

232

0545402 Chicory roots, fresh or chilled -

0.04 -

0.27

578

0.11

(59)

-

(100) -

0545503 Beet root, fresh or chilled

0.06 -

(100)

- -

- -

- - -

0545501 Carrot fresh or chilled -

0.03 -

0.03

(1)

0.06

70

0.26

361 -

0545502 Turnips fresh or chilled -

- -

0.00 -

-

(100)

- - -

0545504 Raddish fresh or chilled -

- -

- -

0.00 -

-

(100) -

0545600Cucumbers, gherkins fresh or chilled

-

- -

- -

- -

0.00 - -

0545701 Peas fresh or chilled

0.08 -

(100)

- -

0.01 -

0.04

658 -

0545702 Beans -

- -

- -

0.00 -

-

(100) -

0545801 Mushrooms, fresh or chilled

0.00

0.00

326

0.00

(64) -

(100)

- - -

0545802 Truffles, fresh, chilled -

0.00 -

0.00

(19)

-

(100)

- - -

0545902 Brinjal -

0.01 -

-

(100)

- -

- - -

0545903 Pumpkin

0.00

0.02

337

0.07

349 -

(100)

0.04 - -

0545911 Chillies (green)

0.64

0.17

(74)

0.00

(98)

0.28

6,979

0.01

(96)

1,678

0545929 Other vegetables fresh or chilled

0.00

0.01

861

0.01

19

0.00

(69)

0.07

1,423

558

0546100 Sweet corn, frozen

0.00

0.00

(3)

0.00

(49) -

(100)

- - -

179


SITC Item 1996-97

1997-98 1998-99 1999-00 2000-01 Average

growth rate

000’ tons

Growth rate (%)

000’ tons

Growth rate (%)

000’ tons

Growth rate (%)

000’ tons

Growth rate (%)

0546900Other veg + mix of veg, cooked or frozen

0.04

0.09

131

0.02

(81)

0.03

47

0.03

2

25

0547000 Vegetable provisional preserv

0.01

0.02

286

0.01

(69)

0.01

57

0.02

88

90

0548100 Manioc (cassawa) fresh or dried -

0.21 -

-

(100)

- -

- - -

0548301 Arrow root

0.00 -

(100)

0.01 -

-

(100)

- - -

0548309 Other roots & tubers

0.00 -

(100)

0.01 -

-

(100)

- - -

0548401 Hop cones

0.00

0.01

100

0.00

(59)

0.00

(50)

0.01

321

78

0548402 Lupulin

0.00 -

(100)

- -

- -

- - -

0548909 Veg product for human food ns

0.00

0.02

464 -

(100)

- -

- - -

0561100 Potatos, dried cut/not sliced -

- -

0.00 -

-

(100)

- - -

0561200 Onion dried cut or in powder -

0.34 -

0.02

(95)

-

(100)

0.03 - -

0561301 Mushrooms, dried

0.00

0.00

234

0.00

(84)

0.00

1,623

0.01

147

480

0561909Other veg and mixtures of veg ns

0.00

0.00

50

0.00

(92)

0.00

(18)

0.00

84

6

Total

169.98

244.87

44

321.48

31

392.94

22

446.70

14

28

Source: Foreign Trade Statistics of Pakistan 1997-98 to 2000-01

6. Projected import volume

Import in2000-01

Average growth rate of last five

years (%)

Projected import (with 28% average growth rate)

2001-02 2002-03 2003-04 2004-05 2005-06

446.70 28 571.78 731.87 936.80 1199.10 1534.85

With growth rate of 28%, the import will increase to 1536000 tones in the year 2005-2006.

180


7. Import value and import growth trend of edible vegetables and certain roots and tubers


growth rate

000’USD

000’USD

Growth rate (%)

000’USD

Growth rate (%)

000’USD

Growth rate (%)

000’USD

Growth rate (%)


305

429

41

429

(0)

212

(51)

143

(32) -11

0541002 Potatoes, seed

1,847

2,653

44

381

(86)

351

(8)

426

21 -7

0542100 Peas, dry whole

959

4,092

327

7,937

94

14,531

83

17,342

19 131

0542200 Chickpeas

3,634

5,459

50

4,435

(19)

24,062

443

49,156

104 145

0542301 Beans, dry whole

479

438

(8)

505

15

1,622

221

881

(46) 46

0542302 Red beans

1,016

1,742

72

3,279

88

2,311

(30)

2,325

1 33

0542303 Kinney beans (lobia)

5,857

3,793

(35)

4,753

25

5,968

26

8,449

42 14

0542304 Green beans dry

92

2,658

2,792

7,125

168

1,400

(80) -

(100) 695


45

1,115

2,381

1,074

(4)

228

(79)

236

3 575

0542401 Lentiles dry whole

2,084

3,534

70

10,139

187

10,528

4

14,074

34 74

0542402 Lentiles split

2,706

3,753

39

3,386

(10)

3,777

12

2,600

(31) 2

0542500Broad beans and horse beans

8

6

(19)

8

34

-

(100)

- - -

0542901 Gram, dry whole

2

105

6,239 -

(100)

175 -

1,424

711 -

0542902 Gram split

0

2

1,300 -

(100)

- -

0 - -

0542903 Mash dry whole

1,913

2,373

24

1,913

(19)

2,846

49

1,537

(46) 2

0542903 Guwar, whole

1,913

2,373

24 -

(100)

- -

- - -

0542906 Black matpe

7,706

6,778

(12)

7,022

4

9,013

28

11,221

25 11

0542907 Guwar split

324 -

(100)

- -

- -

- - -

0542919Leguminous vegetable dried ns

439

590

35

103

(82)

479

363

105

(78) 59

181



growth rate

000’USD

000’USD

Growth rate (%)

000’USD

Growth rate (%)

000’USD

Growth rate (%)

000’USD

Growth rate (%)

0544000 Tomatoes, fresh or chilled

47

127

170

114

(10)

72

(37)

94

30 38


825

3,910

374

2,537

(35)

1,726

(32)

1,357

(21) 71

0545102 Shallots fresh or chilled

1 -

(100)

0 -

10

2,676

-

(100) -

0545201 Garlic

5

621

11,216

9,327

1,401

5,559

(40)

3,323

(40) 3134

0545202 Leeks

7

6

(20)

68

1,133

17

(75) -

(100) 235

0545203 Ginger not dried

6,226

8,458

36

11,555

37

12,043

4

16,155

34 28

0545209Other alliaceous veg fresh/chilled

-

1 -

-

(100)

22 -

1

(97) -

0545302Cauliflower fresh or chilled

-

- -

- -

42 -

-

(100) -

0545401 Lettuce fresh or chilled

0

18

21,120

104

489

43

(59)

90

110 5415

0545402Chicory roots, fresh or chilled

-

17 -

95

472

40

(58)

-

(100) -


1 -

5

583

2

(53)

10

313 -


- -

0 -

-

(100)

- - -

0545504 Raddish fresh or chilled -

- -

- -

0 -

-

(100) -

0545600Cucumbers, gherkins fresh or chilled

-

- -

- -

- -

0 - -

0545503 Beet root fresh or chilled

15 -

(100)

- -

- -

- - -

0545701 Peas fresh or chilled

43 -

(100)

- -

1 -

30

3,207 -

0545702 Beans -

- -

- -

0 -

-

(100) -

0545801 Mushrooms, fresh, chilled

0

5

7,200

0

(94) -

(100)

- - -

0545802 Truffles, fresh, chilled -

1 -

1

30

-

(100)

- - -

0545902 Bringal -

- -

0 -

-

(100)

- - -

0545903 Pumpkin

0

2

339

9

346 -

(100)

5 - -

0545911 Chillies (green)

70

28

(60)

0

(99)

45

10,864

1

(98) 2652

0545929Other vegetables fresh or chilled

0

4

1,833

19

397

6

(71)

27

378 634

0546100 Sweet corn, frozen

6

11

69

3

(71) -

(100)

- - -

0546900Other veg + mix of veg, cooked or frozen

29

68

133

10

(85)

8

(19)

31

262 73

0547000Vegetable provisional preserv

0

12

2,459

6

(53)

6

-

21

255 665

Manioc (cassava) fresh or dried

-

- -

31 -

-

(100)

- - -

0548301 Arrow root

0 -

(100)

2 -

-

(100)

- - -

0548309 Other roots and tubers ns

0 -

(100)

6 -

-

(100)

- - -

0548401 Hop cones

8

16

110

10

(41)

6

(34)

30

387 105

0561100Potatoes dried cut/not sliced

-

- -

3 -

-

(100)

- - -

0548402 Lupulin

7 -

(100)

- -

- -

- - -

Veg product for human use

-

4 -

11

193

-

(100)

- - -

182



growth rate

000’USD

000’USD

Growth rate (%)

000’USD

Growth rate (%)

000’USD

Growth rate (%)

000’USD

Growth rate (%)

561200Onion dried cut or in powder

-

49 -

2

(96)

-

(100)

2 - -

561301 Mushrooms, dried

0

2

377

0

(89)

5

2,308

8

70 667

561909Other veg and mixtures of veg ns

19

4

(77)

1

(80)

2

123

2

25 -2

Total

38,637

55,258

43

76,411

38

97,157

27 13

1,106

35 36


8. Imports prices (based on the most recent import during 1999 to 2001)

SITC Item Import price (USD/Kg)

0541001 Potatoes fresh or chilled 0.0190541002 Potatoes, seed 0.4320542100 Peas, dry whole 0.1770542200 Chickpeas 0.3510542301 Beans, dry whole 0.2910542302 Red beans 0.3210542303 Kinney beans (lobia) 0.3040542304 Green beans dry 0.2420542305 Green beans split 0.1460542401 Lentiles dry whole 0.3770542402 Lentiles split 0.3450542901 Gram, dry whole 0.3210542902 Gram split 0.0350542903 Mash dry whole 0.1400542906 Black matpe 0.4220542919 Leguminous vegetable dried ns 0.2340544000 Tomatoes, fresh or chilled 0.059

183



0545101 Onion fresh or chilled 0.0580545102 Shallots fresh or chilled 0.3250545201 Garlic 0.2960545202 Leeks 0.3510545203 Ginger not dried 0.4400545209 Other alliaceous veg fresh/chilled 0.2080545302 Cauliflower fresh or chilled 0.2800545401 Lettuce fresh or chilled 1.1640545402 Chicory roots, fresh or chilled 0.3590545501 Carrot fresh or chilled 0.0380545504 Raddish fresh or chilled 0.3320545600 Cucumbers, gherkins fresh or chilled 0.4980545701 Peas fresh or chilled 0.7300545702 Beans 0.0470545903 Pumpkin 0.1350545911 Chillies (green) 0.0850545929 Other vegetables fresh or chilled 0.4040546900 Other veg. + mix of veg, cooked or frozen 1.1360547000 Vegetable provisional preserv 1.1600548401 Hop cones 4.7970561200 Onion dried cut or in powder 0.0510561301 Mushrooms, dried 1.1890561909 Other veg and mixtures of veg ns 5.288


9. Sources of imports specifying aforementioned and other countries

0542303-KINNEY BEANS (LOBIA)

1. --Afghanistan2. --Asian Countries

NS3. --Australia4. --Burma5. --Canada6. --China7. --Dubai8. --Indonesia9. --Iran10. --Netherlands11. --Singapore12. --Egypt13. --USA

0542304-GREEN BEANS DRY

1. --Australia2. --Burma3. --Canada4. --China5. --Tanzania6. --UK

0542305-GREEN BEANS SPLIT

1. --Afghanistan2. --Australia3. --Burma4. --China

0542401-LENTILES DRY WHOLE

1. --Algeria2. --Australia3. --Canada4. --China5. --Dubai6. --Germany7. --India8. --Indonesia9. --Nepal10. --Pacific Islands11. --Poland12. --Georgia13. --USA

0542402-LENTILES SPLIT1. --Afghanistan2. --Australia3. --Burma4. --Canada5. --China6. --India7. --Nepal8. --USA

0542901-GRAM, DRY WHOLE

1. --Australia2. --Iran3. --Tanzania

184


0542902-GRAM SPLIT1. --Afghanistan

0542903-MASH DRY WHOLE

1. --Afghanistan2. --India3. --Iran

0542906-BLACK MATPE1. --Afghanistan2. --Asian Countries

NS3. --Australia4. --Burma5. --China6. --Hong Kong7. --Iran8. --Kuwait9. --Macao10. --Malaysia11. --Nepal12. --Netherlands13. --Ruanda14. --Singapore15. --Sri Lanka16. --Thailand17. --USA18. --Viet Nam

0542919-LEGUMINOUS VEGETABLE DRIED NS

1. --Afghanistan2. --Australia3. --Burma4. --China5. --France6. --India7. --Nepal8. --UK

0544000-TOMATOES, FRESH OR CHILLED

1. --Afghanistan2. --Iran

0545101-ONION FRESH OR CHILLED


0545102-SHALLOTS FRESH OR CHILLED

1. --Afghanistan2. --Burma

0545201-GARLIC1. --Afghanistan2. --Australia3. --Canada4. --China5. --Hong Kong6. --Indonesia7. --Iran8. --Nepal9. --Ryukus10. --Singapore11. --Thailand

0545202-LEEKS1. --Indonesia

0545203-GINGER NOT DRIED

1. --Afghanistan2. --Asian Countries

NS3. --Bhutan4. --Burma5. --Cambodia6. --China7. --Dubai8. --Guatemala9. --Hong Kong10. --India11. --Indonesia12. --Japan13. --Malaysia14. --Mongolia15. --Nepal16. --Netherlands17. --Qatar18. --Georgia19. --Yemen20. --Romania21. --Ryukus22. --Singapore23. --Sri Lanka24. --Tanzania25. --Thailand26. --Viet Nam

0545209-OTHER ALLIACEOUS VEG FRESH/CHILLED

1. --Afghanistan2. --Australia3. --Indonesia4. --Thailand

0545302-CAULIFLOWER FESH OR CHILLED

1. --China0545401-LETTUCE FRESH OR CHILLED

1. --Australia2. --Dubai3. --India4. --Indonesia5. --Iran6. --Lebanon7. --Netherlands

0545501-CARROT FRESH OR CHILLED

1. --Afghanistan0545504-RADDISH FRESH OR CHILLED

1. --Iran0545600-CUCUMBERS, GHERKINS FRESH OR CHILLED

1. --Bangladesh

0545402-CHICORY ROOTS, FRESH OR CHILLED

1. --Australia2. --Dubai3. --Iran

0545701-PEAS FRESH OR CHILLED

1. --Afghanistan2. --Dubai3. --Hungary

0545702-BEANS1. --Afghanistan2. --Iran

0545929-OTHER VEGETABLES FRESH OR CHILLED

1. --Bangladesh2. --Dubai3. --Iran

0546900-OTHER VEG + MIX OF VEG, COOKED OR FROZEN

1. --Bangladesh2. --Belgium 3. --Canada4. --France5. --India6. --Italy7. --USA8. --UK

0545903-PUMPKIN1. --Iran

0545911-CHILLIES (GREEN)

1. --Afghanistan2. --India

0547000-VEGETABLE PROVISIONAL PRESERV

1. --Afghanistan2. --Spain3. --USA4. --UK

0548401-HOP CONES1. --Germany2. --USA

0561200-ONION DRIED CUT OR IN POWDER

1. --Afghanistan0561301-MUSHROOMS, DRIED

1. --Afghanistan0561909-OTHER VEG AND MIXTURES OF VEG NS

1. --Asian Countries NS

2. --France


185


10. Export of vegetables and certain roots and tubers with share of individual items

Figures in 000


PRP USD % PRP USD %

0541001 Potatoes fresh or chilled 389,309 6,456.20 18% 503,781 8,354.58 23%

0541002 Potatoes, seed 551 9.14 0% - - 0%

0542100 Pease, dry whole 2,673 44.33 0% 6,666 110.55 0%

0542200 Chichpeas 1,666 27.63 0% - - 0%

0542301 Beans dry whole 35,658 591.34 2% 714 11.84 0%

0542302 Red beans 3,636 60.30 0% - - 0%

0542303 Kidney beans 1,807 29.97 0% - - 0%

0542304 Green beans dry 482,549 8,002.47 22% 108,919 1,806.29 5%

0542305 Green beans split 196,204 3,253.80 9% 79,568 1,319.54 4%

0542401 Lentiles dry whole - - 0% 4,555 75.54 0%

0542402 Lentils split 3,598 59.67 0% 396 6.57 0%

0542500 Broad beans and horse beans 103 1.71 0% - - 0%

0542901 Gram dry whole 3,991 66.19 0% 2,532 41.99 0%

0542902 Gram split 64,751 1,073.81 3% 20,267 336.10 1%

0542903 Mash dry whole 6,762 112.14 0% 3,972 65.87 0%

0542904 Mash, split or whole 14,568 241.59 1% 10,782 178.81 0%

0542905 Guar whole - - 0% 261 4.33 0%

0542906 Black matpe 2,560 42.45 0% - - 0%

0542919 Leguminous vegetable dried ns 44,846 743.71 2% 1,400 23.22 0%

0544000 Tomatoes fresh or chilled 39 0.65 0% 167 2.77 0%

0545101 Onion fresh or chilled 601,289 9,971.63 28% 1,028,669 17,059.19 46%

0545201 Garlic 10,340 171.48 0% 16,789 278.42 1%

0545209 Oth alliaceous veg fresh/chill 28,852 478.47 1% 4,080 67.66 0%

054401 Lettuce fresh or chilled - - 0% 403 6.68 0%

0545501 Carrot fresh or chilled 56 0.93 0% - - 0%

0545502 Turnips fresh or chilled 2 0.03 0% 58 0.96 0%

0545600Cucumber, gherkins fresh or chilled 424 7.03 0% 781 12.95 0%

0545701 Peas fresh or chilled 1,813 30.07 0% 4,067 67.45 0%

0545702 Beans 190 3.15 0% 2,734 45.34 0%

0545902 Brinjal 1,140 18.91 0% 267 4.43 0%

0545903 Pumpkin 761 12.62 0% 84 1.39 0%

0545905 Lady finger 1,114 18.47 0% 139 2.31 0%

0545906 Tinda 240 3.98 0% 39 0.65 0%

0545907 Torai - - 0% 105 1.74 0%

0545908 Arvi 1,070 17.74 0% 7 0.12 0%

0545911 Chillies, green 78 1.29 0% - - 0%

0545929Other vegitable Fresh or Chilled ns 115,601 1,917.10 5% 58,634 972.37 3%

0548801 Sugar cane 65 1.08 0% - - 0%

0561301 Mushroom dried 124,948 2,072.11 6% 357,473 5,928.24 16%

0561901 Methi, dried or powdered 7,473 123.93 0% 2,743 45.49 0%

0561909Other vegitable & mixture of veg NS 313 5.19 0% - - 0%

Total 1,902,640 35,672.31 100% 2,221,052 36,833.37 100%


186


11. Export volume and export growth trend of edible vegetables and certain roots and tubers

Code Commodity1996-97 1997-98 1998-99 1999-00 2000-01 Average

growth rate (%)

000' tons

000' tons

Growth rate (%)

000' tons

Growth rate (%)

000' tons

Growth rate (%)

000' tons

Growth rate (%)


0.12

38.92 31,98

2.68 1,212.79

211.64

91.06

(24.92)

58.45

(35.81) 8033.40

0541002 Potatoes, seed -

- -

- -

- -

0.01 - -

0542100 Pease, dry whole -

- -

- -

0.35 -

0.17

(50.54) -

0542200 Chichpeas -

- -

- -

- -

0.06 - -

0542301 Beans dry whole -

- -

- -

0.12 -

2.22

1,709.49 -

0542302 Red beans -

- -

- -

- -

0.18 - -

0542303 Kidney beans -

- -

- -

- -

0.23 - -

0542304 Green beans dry -

- -

0.78 -

5.33

6,732.39

22.51

322.32 -

0542305 Green beans split -

- -

1.92 -

3.79

1,871.61

8.21

116.71 -

0542401 Lentiles dry whole -

- -

- -

0.23 -

0.23

- -

0542402 Lentils split -

- -

0.43 -

0.02

(49.31)

0.09

293.40 -

0542500Broad beans and horse beans

-

- -

- -

- -

0.00 - -

0542901 Gram dry whole -

- -

3.71 -

0.12

(67.22)

0.16

35.47 -

0542902 Gram split -

0.10 -

8.19

743.90

1.11

35.57

3.90

251.24 -

0542903 Mash dry whole -

- -

1.97 -

0.15

(21.50)

0.27

73.18 -

0542904 Mash, split or whole -

- -

1.57 -

0.40

154.51

0.47

16.61 -

0542905 Guar whole -

- -

- -

0.02 -

-

(100.00) -

0542906 Black matpe -

- -

- -

- -

0.10 - -

0542907 Gwar, split -

0.10 -

1.70

70.00

-

(100.00)

- - -

0544000Tomatoes, fresh or chilled

0.00

0.00

125.03

-

(100.00)

- -

- - -

0542919Leguminous vegitable dried ns

-

- -

2.32 -

0.08

(66.57)

3.33

4,191.45 -

0544000Tomatoes fresh or chilled

-

- -

- -

0.01 -

0.01

(47.04) -


18.74

65.00 2

46.76

677.93

4.30

128.67

89.80

77.17 (40.

03) 75.21

0545201 Garlic

0.09 -

(100.00)

30.01 -

0.74

(75.23)

0.36

(51.75) -

0545209Oth alliaceous veg fresh/chill

-

0.02 -

1.13

370.83

1.13

901.31

3.34

195.15 -

0544001 Lettuce fresh or chilled -

- -

0.60 -

0.07

16.67

-

(100.00) -


- -

- -

- -

0.01 - -


- -

- -

0.02 -

0.00

(99.51) -

0545600Cucumber, gherkins Fresh or Chilled

0.28

-

(100.00)

1.61 -

0.17

6.00

0.18

2.63 -

0545701 Peas Fresh or Chilled

0.13

0.24

88.75

0.88

(62.92)

0.15

69.36

0.10 (35.

96) 14.81

0545702 Beans -

- -

- -

0.17 -

0.02

(89.04) -

0545902 Brinjal

0.27

0.29

6.08

4.76

65.00

0.09

(80.16)

0.25 163.

64 38.64

0545903 Pumpkin -

- -

0.16 -

0.03

90.48

0.07

136.97 -

0545905 Lady finger

0.24 -

(100.00)

4.35 -

0.03

(92.91)

0.17

464.71 -

187


Code Commodity1996-97 1997-98 1998-99 1999-00 2000-01 Average

growth rate (%)

000' tons

000' tons

Growth rate (%)

000' tons

Growth rate (%)

000' tons

Growth rate (%)

000' tons

Growth rate (%)

0545906 Tinda -

- -

- -

0.01 -

0.03

160.04 -

0545907 Torai -

- -

- -

0.04 -

-

(100.00) -

0545908 Arvi -

0.01 -

0.42

361.67

0.00

(97.28)

0.16 14,263.72 -

0545911 Chillies, green -

- -

- -

- -

0.01 - -

0545929Other vegitable Fresh or Chilled ns

1.01

0.98

(2.98)

9.78

(0.61)

5.32

444.10

8.48

59.32 124.96

0546900Veg + mix of veg cook/froz

0.03

-

(100.00)

- -

- -

- - -

0548801 Sugar cane

0.00 -

(100.00)

- -

- -

0.01 - -

0561100Potatos dried not cut/sliced

0.00

0.05

4,952.63

-

(100.00)

- -

- - -

0561301 Mushroom dried

0.08

0.07 (

17.80)

0.97

42.67

0.10 -

0.02

(75.90) -12.76

0561901 Methi, dried or powdered

0.09

0.04 (

50.34)

0.33

(24.45)

0.03 -

0.09

162.23 21.86

0561909Other vegitable & mixture of veg NS

-

- -

- -

- -

0.02 - -

Total

21.09

105.82 40

1.79 1,968.30

86.01

239.58

21.72

191.05

(20.26) 122.32


12. Exports showed a net increasing trend over the last 5 years

Major vegetable export items by value

Figures in 000No. Code Commodity 2000-01 1999-00

PRs. USD % PRs. USD %

1 0541001 Potatoes fresh or chilled 389,309 6,456.20 18% 503,781 8,354.58 23%

8 0542304 Green beans dry 482,549 8,002.47 22% 108,919 1,806.29 5%

9 0542305 Green beans split 196,204 3,253.80 9% 79,568 1,319.54 4%

21 0545101 Onion fresh or chilled 601,289 9,971.63 28% 1,028,669 17,059.19 46%

39 0561301 Mushroom dried 124,948 2,072.11 6% 357,473 5,928.24 16%

Total 29756.21 83% 34467.84 94%

Others 5916.1 17% 2365.53 6%


188


13. Major export markets vegetables

Code Commodity Major market (share-wise)

0541001Potatoes fresh or chilled

Sri LankaMalaysiaAfghanistanSingaporeDubaiHongkongBangladeshOman

0542304 Green beans dry Afghanistan

0561301 Mushrooms dried

FranceSwitzerlandGermanyUnited kingdomAustraliaNetherlandsUSA


IndiaDubaiSaudi ArabiaMalaysiaSri LankaIndonesiaPhilippinesQatar


DubaiSri LankaOmanQatarMaldivesSingaporeSaudi Arabia

Analysis of apparent consumption for the last five years:

Assumption: Wastage=0, Stocks = constant through the year

Consumption = Production + Imports – Exports

Figures in 000’ tons

1996-97 1997-98 1998-99 1999-00 2000-01

Production (A) 3,822 4,372 4,806 4,732 4,994 Import (B) 170 245 321 393 447 Export (C) 21 106 1,968 240 191 Consumption (A+B-C) 3,970 4,511 3,159 4,885 5,249

189


14. Growth rate of consumption

1996-97 1997-98 1998-99 1999-00 2000-01Average growth

rateConsumption

(000’ tons)Consumption

(000’ tons)

Growth rate (%)

Consumption (000’ tons)

Growth rate (%)


Growth rate (%)


Growth rate (%)

3,970 4,511 13.63 3,159 -29.97 4,885 54.64 5,249 7.45 11.44

15. Projected consumption for the next five years

Consumption in

2000-01

Average growth rate of last five years

(%)

Projected consumption (with 11.44% average growth rate)

2001-02 2002-03 2003-04 2004-05 2005-06

5,249 11.44 5,849.29 6,518.23 7,263.67 8,094.36 9,020.05

Projected rise in consumption of 11.5%, constant, yields to 9020.05 tons by the year 2005-6.

190


IV. IMPORT POLICY AND PROCEDURES

1. Import licenses for public sector/government undertakings


Importer’s registration criteria:




2. Import duties:


(ad val.)0701.1000 Potatoes, seed 10%0701.9000 Potatoes, fresh or chilled 10%0702.0000 Tomatoes, fresh or chilled 15%0703.1000 Onions and shallots 15%0703.2000 Garlic 15%0703.9000 Leeks and other alliaceous vegetables 15%0704.1000 Cauliflowers and headed broccoli 10%0704.2000 Brussels sprouts 10%0704.9000 Other cabbages/cauliflowers 10%0705.1100 Cabbage lettuce 10%0705.1900 Other lettuce 10%0705.2100 Witloof chicori 10%0705.2900 Other chicory 10%0706.1000 Carrots and turnips 10%0706.9000 Other similar roots 10%0707.0000 Cucumbers and gherkins fresh or chilled 10%0708.1000 Peas 10%0708.2000 Beans 10%0708.9000 Other leguminous vegetables 10%0709.1000 Globe artichokes 10%0709.2000 Asparagus 10%0709.3000 Aubergins (egg plants) 10%0709.4000 Celery other than celeriac 10%0709.5100 Mushrooms 10%

191



(ad val.)0709.5200 Truffles 10%0709.6000 Fruits of the genus capsicum or genus pimenta 10%

0709.7000Spinach, New Zealand Spinach and orche spinach (garden spinach)

10%

0709.9000 Other, fresh or chilled 10%0710.1000 Potatoes, frozen 20%0710.2100 Peas, frozen 20%0710.2200 Beans, frozen 20%0710.2900 Other, frozen 20%

0710.3000Spinach, New Zealand Spinach and orche spinach (garden spinach)

20%

0710.4000 Sweet corn, frozen 20%0710.8000 Other vegetable, frozen 20%0710.9000 Mixture of veg, frozen 20%

0711.1000Onions, Preserved chemically, not meant for immediate consumption

20%

0711.2000Olives, Preserved chemically, not meant for immediate consumption

20%

0711.3000Capers, Preserved chemically, not meant for immediate consumption

20%

0711.4000Cucumbers and gherkins, Preserved chemically, not meant for immediate consumption

20%

1711.9000Other veg or mixture of veg, preserved chemically, not meant for immediate consumption

20%

0712.2000Onions, dried, whole, cut, sliced, broken or in powder, but not further prepared

20%

0712.3000Mushrooms and truffles, dried, whole, cut, sliced, broken or in powder, but not further prepared

20%

0712.9000Other veg, mixture of veg, dried, whole, cut, sliced, broken or in powder, but not further prepared

20%

0713.1000 Peas, dried, shelled, whether or not skinned, or split 5%0713.2000 Chickpeas, dried, shelled, whether or not skinned, or split 5%0713.3100 Beans, dried, shelled, whether or not skinned, or split 5%0713.3200 Small red beans, dried, shelled, whether or not skinned, or split 5%0713.3300 Kidney beans, dried, shelled, whether or not skinned, or split 5%

0713.3900Other leguminous veg, dried, shelled, whether or not skinned, or split

5%

0713.4000 Lentils, dried, shelled, whether or not skinned, or split 5%0713.5000 Broad beans, dried, shelled, whether or not skinned, or split 5%0713.9000 Other, dried, shelled, whether or not skinned, or split 5%0714.1000 Manioc (cassava) 10%0714.2000 Sweet potatoes 10%0714.9000 Other roots and tubers with high starch content 10%

Source: Customs Duty Handbook

192


3. Exemptions

There is 0% ad val. duty on Garlic falling under sub-heading No. 0703.2000 and pulses falling under heading 07.13.(Source: Customs Duty Handbook)

4. Preferential

Exemption of 20% of the leviable rates have been allowed on the imports into Pakistan from the SAARC member states (for the least developed countries), if made in the conformity with the SAARC Rules of Origin issued by Ministry of Commerce [SRO No. 374(1)/2001], for the following items:

HS no. Item Exemption on customs duty0701.1000 Potatoes fresh or chilled 20% of the leviable rates0701.9000 Other potatoes in this heading 20% of the leviable rates0703.1000 Onions and shallots 20% of the leviable rates0709.5100 Fresh mushrooms 30% of the leviable rates0713.4000 Lentils 30% of the leviable ratesSource: Customs Duty Handbook



Port handling charges: $0.9/ton D.O. charges charged by the shipping line: Appx. $90 to $ 180 per container depending upon

weight and nature of goods.Source: BIZ Corporation






193


8. Import channels

Most of the import of the relative items is made through sea. The consignments are destined either to Karachi Sea Port or to the dry ports in different cities like Lahore, Sialkot, Multan, etc. If the importer is Lahore- based, he would prefer to receive his consignment at Lahore Dry Port. This not only provides him proximity to the port as well as ease in clearing his goods but also saves him $150 to $500 per container.



Following channels are used to market the imported cereal products:

Exporter Importer Wholesaler Retailer CustomerExporter Importer Retailer Customer

10. Mark-up in distribution

The approximate mark-up at different levels of distribution is as under:

Importer 20% to 80%Wholesaler 15% to 50%Retailer 15% to 100%

In case the importer is itself a wholesaler, the mark-up increases accordingly.



Export Promotion Bureau (EPB)5th Floor Block A, Finance & Trade Centre, Shahra-e-Faisal Karachi.Tel. 21-9202718

Lahore Chamber of Commerce & Industry11-Shahra-e- Aiwan-e-TijaratLahore.Tel. 6365737-42Fax 6368854

Small & Medium Enterprise Development Authority (SMEDA)GM Sind , 5th Floor Block A, Finance & Trade Centre, Shahra-e-Faisal Karachi. Tel. 21-9206491, 9201517Fax 9206477

194


HEAD-OFFICE MINISTRY OF FOOD, AGRICULTURE AND LIVESTOCKPAK SECRETARIAT BLOCK-A, ISLAMABAD, PAKISTANTel. 51-9203307, 51-9210351Fax 51-9221246

195


HS Chapter – 09 – Coffee, tea, malt & spices

I. INTRODUCTION

Products covered under the survey with definition and/or description, HS, SITC and country’s trade classification numbers


All items except cocoa products lying in Division 07 of SITC (Chapter 09 of HS). The major heads in this chapter are coffee, tea, mate and spices.


In Pakistan, there are Pakistan Standard Trade Classification (PSTC) that corresponds to the Standard International Trade Classification (SITC) Of the UN statistical office. In 1973, the Customs Cooperation Council (CCC) had developed a Harmonised Commodity Description and Coding System (HS) and, based on HS headings, the UN Statistical Office produced the third revision of SITC. The present PSTC system is based on that third revision of SITC.

SITC Item HS code

0711100 Coffee unroasted not decafinated 0901.110711200 Coffee unroasted decafinated 0901.120712001 Coffee roasted not decafinated 0901.210712002 Coffee roasted decafinated 0901.220741100 Green tea (not firm) in pack 0902.100741200 Other green tea not fermentated 0902.200741300 Black tea (ferment) pack of 3 kg 0902.300741401 Tea dust 0902.400741409 Other black tea 0902.400743100 Mate 0903.000751101 Pepper black 0904.110751102 Pepper white 0904.110751109 Pepper and pimento ns 0904.110751300 Fruit of genus capsicum/piment 0904.200752100 Vanilla 0905.000752200 Cinamon flower not crush/ground 0906.100752300 Cinamon frower crushed/ground 0906.200752400 Clove (fruit, cloves and stem) 0907.000752501 Nutmeg 0908.000752502 Mace 0908.000752503 Cardamoms, small 0908.00

196


SITC Item HS code

0752504 Cardamom, large 0908.000752601 Anise seed 0909.000752602 Fennel seeds 0909.000752603 Coriander seeds 0909.000752604 Cumin seeds 0909.000752605 Caraway seeds 0909.000752700 Ginger (exclud pres in sugar) 0909.000752802 Saffron 0910.300752803 Bay leaves 0910.400752901 Turmeric 0910.300752902 Curry 0910.500752903 Dillseed 0910.910752904 Chillies, dry 0910.990752919 Other spices ns 0910.99

3. Significance of the product to the economy and foreign trade sector of the country (e.g. expressed as share in total annual imports for the country

Total imports of Pakistan in 2000-01: $10398 million.

Import of coffee in 2000-01: 21.64.Share of coffee imports in total imports: 0.21%.

Import of tea in 2000-01: 199.50.Share of tea imports in total imports: 1.92%.

Import of mate in 2000-01: 0.Share of mate imports in total imports: 0%.

Import of spices in 2000-01: 16.54.Share of spices imports in total imports: 0.16%.

Tea is counted as staple food item of common man in Pakistan. It has become an integral part of Pakistan’s culture. Pakistan consumes a substantial quantity of tea. Pakistan is a non tea-producing country and the entire demand is filled through imports. Pakistan is the world’s second largest non-producing tea importer. Government of Pakistan deals tea as primary commodity.


The principal objective of the survey is to provide comprehensive information on the market for coffee, tea, mate and spices in Pakistan, with a view to assisting potential suppliers of these products/commodities in taking advantage of existing trade opportunities.

197



5. Methodology

Entire of the study is based upon desk research. The following sources were approached to seek data and information:

1. Lahore Chamber of Commerce & Industry (LCCI).2. Export Promotion Bureau (EPB).3 Small & Medium Enterprises Development Authority (SMEDA).


1. Economic Survey of Pakistan.2. Foreign Trade Statistics of Pakistan vol. 1996-97 to 2000-01.3. IR Reports.4. Custom Duty Handbook.5. Export commodities of Pakistan 1999-00.

II. SUMMARY OF CONCLUSIONS & RECOMMENDATIONS:


All items, except cocoa products, in Division 07 of SITC (Chapter 09 of HS). The major heads in this chapter are coffee, tea, mate and spices.

2. Significance of the products in national economy

Share of coffee imports in total imports – 0.21%.Share of tea imports in total imports – 1.92%.Share of mate imports in total imports – 0%.Share of spices imports in total imports – 0.16%.

3. Production of coffee, tea, mate and spices

Commodity Production

Coffee 0Tea 0Mate Data n/aSpices Data n/a

198


Pakistan is a non tea-producing country and the entire demand is filled through imports. Pakistan is the world’s second largest non-producing tea importer. Government of Pakistan deals tea as primary commodity.

Cultivation of tea is being done on experimental basis. But there is no commercial level production

Liver Brothers and Tapal Tea Ltd. are two major tea blenders and marketers. Blended/packaged tea represents appx. 55% of the total trade.

4. Import volume and growth rate

CommodityImport vol. 2000-01

(000’ Kgs)Last five year average growth

rate (%)Coffee 60.19 17.35Tea 111,867 7.64Mate 7.28 4.83Spices 15,814 5.84

5. Consumption volume and growth rate

CommodityConsumption vol. 2000-01

(000’ Kgs.)Last five year average growth

rate (%)Coffee 60.19 17.35Tea 111,831 7.63Mate n.a. n.a.Spices n.a. n.a.

6. Import duties and taxes

Coffee: 30%Tea: 30%Mate: 20%Spices: 20%

Sales tax on coffee, tea, mate and spices: 15% if sales are made to registered customer, 18% if sales are made to non-registered customer



8. Import channels



199


9. Recommendations

Pakistan is the world’s second largest importer of tea. It is a non-producing country. The cultivation could not yet be started despite various effort and experiments. The import of tea shares 2% in the total imports of Pakistan and has an average growth rate of 27%. It’s a good and constant market for foreign suppliers. They may confidently enter into the market with better quality and competitive rates.

Lever Brothers and Tapal tea (Pvt.) the only blenders and major importers. The suppliers having large capacity of supplying quality tea, lower rates and commitment of in-time delivery may target them.

The market for imported tea in consumer packing is almost nil.

Kenya is the largest supplier of tea. The potential exporters are recommended to have analytical study of Kenyan suppliers and enter into Pakistani market with distinctive positive points.

There is no production of coffee in Pakistan. The entire demand is catered through imports. But, due to preference to tea and other beverages, the demand of coffee in Pakistan is very low. Only a limited segment of Pakistan’s beverage market consumes coffee. Despite limited volume import, the average import growth rate is still 17%. The projected import in 2005-06 is just $134,000. The major importer and supplier of coffee is Nestle which markets Nescafe brand of coffee. The foreign suppliers having the capacity of competing with Nestle may only enter in this market. The suppliers of loose coffee may find no market in Pakistan.

Confectionery manufacturing industry in Pakistan is also well-rooted. Cost competitiveness available to the local manufacturers is a big hurdle for foreign suppliers. However, imported chewing gum (sugar coated or not) has good demand so far as imports are concerned. 29% of total import of sugar confectionery is covered by chewing gum. Thus, the suppliers of chewing gum must go ahead with competitive rates and try to penetrate in the market.

Only a few spices are produced in Pakistan, but the demand is high. Thus, Pakistan is a good market for the suppliers of spices. Black pepper, small and large cardamoms, cinnamon flower etc. are major imports.

The regulatory duty on tea (i.e. 30%) is quite high. The government is recommended to revise it and reduce to at least 15%. It will encourage foreign suppliers and local importers. Consequently, the consumption is likely to have greater growth. The duty on coffee, mate and spices is 20%, which is also high.

The suppliers of pepper, cloves, nutmug, mace, large cardamoms, black cumin, fresh ginger and dry ginger belonging to SAARC countries should get advantage of exemptions in import duties.

The implementation of WTO/GATT will definitely create more opportunities for foreign exporters. Imports are likely to increase. The government must ensure to deliver full benefit of it to the local importers.

200


III. MAIN REPORT

Pakistan does not produce or process coffee. All its demand is fulfilled through imports.

Pakistan is a non tea-producing country. The huge demand of tea is catered by imports. Experimental cultivation is being done in some areas. But commercial production is still far from reach.

The first tea processing plant is being established which will process a good quantity of tea. But still it would be meeting a fraction of total demand of Pakistan.

Tea packing industry is well established in Pakistan. Lever Brothers and Tapal Tea (Pvt.) Ltd. are major competitors in packaged tea market. These companies have major share in total tea imports into Pakistan.

Production of mate in Pakistan: Data/info not available.

Production of spices in Pakistan: Data/info not available.

1. Import value of coffee, tea, mate & spices and share of individual items

SITC Item

2000-01 1999-00

000’ USD

% of total import of coffee, tea, mate and

spices

000’ USD


spices

0711100 Coffee unroasted not decafinated

52.27

0.02 31

1.41 0.15

0711200 Coffee unroasted decafinated

9.25

0.00 3

6.93 0.02

0712001 Coffee roasted not decafinated

14.58

0.01

2.19 0.00

0712002 Coffee roasted decafinated

0.43

0.00

0.48 0.00

0713101 Instant coffee 1

39.83

0.06 - 0.00

0713102 Coffee paste -

-

3.30 0.00

0741100 Green tea (not firm) in pack

36.73

0.02

6.00 0.00

0741200 Other green tea not fermentated 1,3

94.21

0.64 1,205

.26 0.60

0741300 Black tea (ferment) pack of 3 kg

2.27

0.00 1

4.43 0.01

0741401 Tea dust 2,3

01.08

1.06 1,376

.10 0.68

201


SITC Item

2000-01 1999-00

000’ USD


spices

000’ USD


spices

0741409 Other black tea 195,7

62.32

90.53 178,071.

28 88.56

0743100 Mate -

-

15.37 0.01

0743200 Extract etc. of tea/mate & prep -

-

13.73 0.01

0751101 Pepper black 3,3

50.05

1.55 2,551.

63 1.27

0751102 Pepper white

75.57

0.03 29

.57 0.01

0751109 Pepper and pimento ns

55.61

0.03 102

.59 0.05

0751300 Fruit of genus capsicum/piment

47.11

0.02 2,148.

87 1.07

0752100 Vanilla

2.64

0.00 35

.54 0.02

0752200 Cinamon flower not crush/ground 2,1

91.39

1.01 1,653.

08 0.82

0752300 Cinamon frower crushed/ground

30.41

0.01 44

.34 0.02

0752400 Clove (fruit, cloves and stem) 1,2

66.88

0.59 967

.23 0.48

0752501 Nutmeg 6

48.39

0.30 256

.85 0.13

0752502 Mace 2

16.58

0.10 702

.06 0.35

0752503 Cardamoms, small 1,8

46.12

0.85 1,923.

86 0.96

0752504 Cardamom, large 4,0

29.47

1.86 3,070.

27 1.53

0752601 Anise seed 1

71.01

0.08 2

.82 0.00

0752602 Fennel seeds

22.85

0.01 1

.53 0.00

0752603 Coriander seeds 8

32.74

0.39 729

.55 0.36

0752604 Cumin seeds 3

21.72

0.15 415

.66 0.21

0752605 Caraway seeds

84.13

0.04 8

.14 0.00

0752700 Ginger (exclud pres in sugar) 4

64.58

0.21 529

.37 0.26

0752802 Saffron

14.66

0.01 - 0.00

202


SITC Item

2000-01 1999-00

000’ USD


spices

000’ USD


spices

0752803 Bay leaves

17.56

0.01 1

.26 0.00

0752901 Turmeric 1

05.80

0.05 28

.67 0.01

0752902 Curry -

-

0.13 0.00

0752903 Dillseed

37.84

0.02 - 0.00

0752904 Chillies, dry 5

49.93

0.25 4,667.

73 2.32

0752919 Other spices ns 1

53.13

0.07 140

.58 0.07

Total 216,24

9.19 1

00.00 201,067.8

1 100.00Source: Foreign Trade Statistics of Pakistan 2000-01

203


2. Import Volume and share of individual items in imports (two years)

Figures in thousand kgs

SITC Item Volume 2000-01 Volume 1999-00

0711100 Coffee unroasted not decafinated 15.4 81.80711200 Coffee unroasted decafinated 2.2 9.60712001 Coffee roasted not decafinated 2.4 0.70712002 Coffee roasted decafinated 0.1 0.10713101 Instant coffee 40.1 -0713102 Coffee paste - 1.50741100 Green tea (not firm) in pack 59.4 9.00741200 Other green tea not fermentated 1,697.5 1,467.00741300 Black tea (ferment) pack of 3 kg 1.1 8.50741401 Tea dust 1,919.0 1,169.00741409 Other black tea 108,189.7 105,990.20743100 Mate - 7.30743200 Extract etc. of tea/mate & prep - 1.90751101 Pepper black 2,152.7 699.90751102 Pepper white 18.1 8.50751109 Pepper and pimento ns 37.8 51.50751300 Fruit of genus capsicum/piment 62.2 2,730.40752100 Vanilla 0.7 30.00752200 Cinamon flower not crush/ground 2,002.0 1,641.20752300 Cinamon frower crushed/ground 26.6 42.00752400 Clove (fruit, cloves and stem) 378.1 421.30752501 Nutmeg 213.6 128.80752502 Mace 40.4 164.20752503 Cardamoms, small 281.0 378.70752504 Cardamom, large 1,020.0 910.00752601 Anise seed 286.7 3.40752602 Fennel seeds 33.8 13.80752603 Coriander seeds 6,439.2 5,984.20752604 Cumin seeds 994.5 2,763.20752605 Caraway seeds 183.0 46.40752700 Ginger (exclud pres in sugar) 516.3 488.40752802 Saffron 0.8 -0752803 Bay leaves 73.9 8.80752901 Turmeric 259.5 56.10752902 Curry - 0.10752903 Dillseed 48.0 -0752904 Chillies, dry 684.7 6,213.30752919 Other spices ns 60.5 70.2

Total 127,740.8 131,600.9Source: Foreign Trade Statistics of Pakistan 2000-01

204


3. Import value and import growth trend of coffee, tea, mate and spices (five years)

SITC Item

1996-97 1997-98 1998-99 1999-00 2000-01 Average growth

ratr000’USD

000’USD

Growth rate (%)

000’USD

Growth rate (%)

000’USD

Growth rate (%)

000’USD

Growth rate (%)

0711100Coffee unroasted not decafinated

-

247 -

118

(52)

311

164

52

(83.21) -

0711200 Coffee unroasted decafinated

47

113

139

14

(88)

37

166

9 (7

4.94) 36

0712001 Coffee roasted not decafinated

100

1

(99) -

(100)

2 -

15

565.91 -

0712002 Coffee roasted decafinated

47 -

(100)

- -

0 -

0

(10.34) -

0713101 Instant coffee

61

0

(100)

2

854 -

(100)

140 - -


- -

- -

3 -

-

(100.00) -

0713109Coffee extract essence concen ns

-

13 -

-

(100)

- -

- - -

0713200 Coffee substitutes

23

2

(91) -

(100)

- -

- - -

0741100 Green tea (not firm) in pack

71

29

(59)

3

(90)

6

106

37 51

1.88 117

0741200 Other green tea not fermentated

317

651

105

1,009

55

1,205

19

1,394

15.68 49

0741300 Black tea (ferment) pack of 3 kg -

- -

12 -

14

17

2

(84.25) -

0741401 Tea dust

1,258

1,111

(12)

396

(64)

1,376

248

2,301

67.22 60

0741409 Other black tea

84,892 16

1,030

90

183,486

14 17

8,071

(3)

195,762

9.93 28

0743100 Mate

26

7

(74)

15

130

15

2 -

(100.00) -11

0743200 Extract etc. of tea/mate & prep

4

7

83

58

687

14

(76) -

(100.00) 148

0751101 Pepper black

1,928

872

(55)

5,975

585

2,552

(57)

3,350

31.29 126

0751102 Pepper white

19

6

(65)

69

979

30

(57)

76 15

5.58 253

0751109 Pepper and pimento ns

18

31

73

100

218 -

(100)

- - -

0751200 Pepper crushed or ground -

- -

4 -

103

2,316

56

(45.80) -

0751300 Fruit of genus capsicum/piment

32

3

(91)

12,179

414,821

2,149

(82)

47 (9

7.81) 103637

0752100 Vanilla

23 -

(100)

- -

36 -

3

(92.58) -

0752200Cinamon flower not crush/ground

566

925

63

1,400

51

1,653

18

2,191

32.56 41

0752300 Cinamon frower crushed/ground

24

2

(92)

97

4,615

44

(54)

30 (3

1.41) 1109

0752400 Clove (fruit, cloves and stem)

423

802

90

1,582

97

967

(39)

1,267

30.98 45

0752501 Nutmeg

173

166

(4)

334

101

257

(23)

648 15

2.44 57

0752502 Mace

149

102

(31)

169

65

702

315

217 (6

9.15) 70

0752503 Cardamoms, small

183

854

367

860

1

1,924

124

1,846 (

4.04) 122

0752504 Cardamom, large

1,216

1,591

31

1,983

25

3,070

55

4,029

31.24 35

0752601 Anise seed

38

40

6

1

(98)

3

183

171 5,96

5.88 1514

205


SITC Item

1996-97 1997-98 1998-99 1999-00 2000-01 Average growth

ratr000’USD

000’USD

Growth rate (%)

000’USD

Growth rate (%)

000’USD

Growth rate (%)

000’USD

Growth rate (%)

0752602 Fennel seeds

222

225

2

100

(56)

2

(98)

23 1,39

7.83 311

0752603 Coriander seeds

576

641

11

753

18

730

(3)

833

14.14 10

0752604 Cumin seeds

243

222

(9)

682

207

416

(39)

322 (2

2.60) 34

0752605 Caraway seeds

23

3

(87)

26

790 -

(100)

- - -

0752607 Methi seed (fenugreek)

3

3

12

0

(94)

8

4,364

84 93

3.20 1304

0752700 Ginger (exclud pres in sugar)

414

514

24

583

14

529

(9)

465 (1

2.24) 4

0752802 Saffron -

- -

- -

- -

15 - -

0752803 Bay leaves

35

39

11

17

(57)

1

(93)

18 1,29

3.42 289

0752901 Turmeric

1,166

667

(43)

1,086

63

29

(97)

106 26

9.00 48

0752902 Curry -

- -

- -

0 -

-

(100.00) -

0752903 Dillseed -

2 -

-

(100)

- -

38 - -

0752904 Chillies, dry

923

1,260

36

2,476

97 -

(100)

- - -

0752905 Chilly powder -

27 -

64

135

4,668

7,216

550

(88.22) -

0752919 Other spices ns

92

23

(75)

217

852

141

(35)

153

8.93 188

Total 95

,333 172,23

3 8

1 2

15,868

25 201,06

8 (7

) 2

16,249 7.55 27

Source: Foreign Trade Statistics of Pakistan vol. 1996-97 to 2000-01

Stable growth in the import of tea, for the last 5 years.

206


4. Imports prices of coffee, tea, mate & spices (based on the most recent import during 1999 to 2001)


0711100 Coffee unroasted not decafinated 3.390711200 Coffee unroasted decafinated 4.180712001 Coffee roasted not decafinated 6.020712002 Coffee roasted decafinated 4.590713101 Instant coffee 3.490713102 Coffee paste 2.200741100 Green tea (not firm) in pack 0.620741200 Other green tea not fermentated 0.820741300 Black tea (ferment) pack of 3 kg 2.100741401 Tea dust 1.200741409 Other black tea 1.810743100 Mate 2.110743200 Extract etc. of tea/mate & prep 7.410751101 Pepper black 1.560751102 Pepper white 4.180751109 Pepper and pimento ns 1.470751300 Fruit of genus capsicum/piment 0.760752100 Vanilla 3.660752200 Cinamon flower not crush/ground 1.090752300 Cinamon frower crushed/ground 1.150752400 Clove (fruit, cloves and stem) 3.350752501 Nutmeg 3.040752502 Mace 5.360752503 Cardamoms, small 6.570752504 Cardamom, large 3.950752601 Anise seed 0.600752602 Fennel seeds 0.680752603 Coriander seeds 0.130752604 Cumin seeds 0.320752605 Caraway seeds 0.460752700 Ginger (exclud. pres in sugar) 0.900752802 Saffron 19.140752803 Bay leaves 0.240752901 Turmeric 0.410752902 Curry 1.660752903 Dillseed 0.790752904 Chillies, dry 0.800752919 Other spices ns 2.53

(Source: Foreign Trade Statistics of Pakistan 2000-01)

207


5. Sources of imports of coffee, tea, mate & spices

0711100-COFFEE UNROASTED NOT DECAFINATED

1. --Dubai2. --Hong Kong3. --Indonesia4. --Singapore5. --USA6. --Veit Nam

0711200-COFFEE UNROASTED DECAFINATED

1. --Germany2. --Malaysia3. --Singapore4. --Thailand5. --UK

0712001-COFFEE ROASTED NOT DECAFINATED

1. --Germany2. --USA

0712002-COFFEE ROASTED DECAFINATED

1. --Italy2. --USA

0713101-INSTANT COFFEE1. --Denmark 2. --Indonesia3. --Italy

0713102-COFFEE PASTE1. --Denmark

0741200-OTHER GREEN TEA NOT FERMENTATED

2. --Bangladesh3. --China4. --Indonesia5. --Netherlands6. --Singapore7. --UK8. --Viet Nam

0741100-GREEN TEA (NOT FIRM) IN PACK

1. --India2. --Iran

0741300-BLACK TEA (FERMENT) PACK OF 3 KG

1. --South Korea2. --USA3. --UK

0741401-TEA DUST1. --Bangladesh2. --Brundi3. --Canada4. --China5. --Guatemala6. --India7. --Indonesia8. --Iran9. --Kenya10. --Lesotho11. --Malawi12. --Ruanda13. --South Africa14. --Sri Lanka15. --Tanzania16. --Ugada17. --UK18. --Viet Nam19. --Zimbabwe

0741409-OTHER BLACK TEA

1. --Afghanistan2. --African Countries

NS3. --Bangladesh4. --Belgium5. --Brundi6. --Brunei7. --Burma8. --Canada9. --Chad10. --Chile11. --China12. --Dubai13. --Equatorial

Guinea(List Contd.)

(List Contd.) 0741409-OTHER BLACK TEA (List Contd.)

14. --Germany15. --Gabon16. --Ghana17. --Guatemala

--Guinea --Hadharamaut

18. --Hong Kong19. --India20. --Indonesia21. --Iran22. --Italy23. --Ivory Coast24. --Japan25. --Kenya

(List Contd.)

(List Contd.) 0741409-OTHER BLACK TEA (List Contd.)

26. --Liberia27. --Macao28. --Malagasi29. --Malawi30. --Malaysia31. --Mauritius32. --Mongolia33. –Nepal34. --Netherlands

Antilles35. --Netherlands

Antilles36. --Papua New

Guinea37. --Nicaragua38. --Pacific Islands 39. --Poland

(List Contd.)

(List Contd.) .) 0741409-OTHER BLACK TEA

40. --Republic of Congo

41. --Republic of Benin

42. --Reunion Islands43. --Rio Mini44. –Ruanda45. --Seychelles46. --Sierra Leone47. --Singapore48. --South Africa49. --South Korea50. --Spain51. --Sri Lanka52. --Swaziland53. --Tanzania54. --Thailand55. --USA56. --Zimbabwe

0743100-MATE1. --China2. --USA

0743200-EXTRACT ETC. OF TEA/MATE & PREP

1. --Netherlands Antilles

2. --Singapore0751101-PEPPER BLACK

1. --Bangladesh2. --Burma3. --Dubai4. --Germany5. --Hong Kong6. --Indonesia7. --Malaysia8. --Nepal9. --Singapore10. --Sri Lanka11. --Viet Nam

0751102-PEPPER WHITE1. --China2. --India3. --Singapore4. --Sri Lanka

0751109-PEPPER AND PIMENTO NS

1. --Dubai2. --Indonesia3. --Singapore4. --Spain5. --Sri Lanka

0751300-FRUIT OF GENUS CAPSICUM/PIMENT

1. --Dubai2. --India3. --Indonesia4. --Singapore5. --Spain6. --Sri Lanka

0752100-VANILLA1. --China2. --France3. --USA

0752200-CINAMON FLOWER NOT CRUSH/GROUND

1. --Asian Countries NS

2. --Australia3. --Canada4. --China5. --Dubai6. --Hong Kong7. --India8. --Indonesia9. --Kuwait10. --Malaysia11. --Maldives12. --Romania13. --Singapore14. --Sri Lanka15. --Turkey

0752300-CINAMON FROWER CRUSHED/GROUND

1. --China

0752400-CLOVE (FRUIT, CLOVES AND STEM)--Dubai--India--Indonesia--Iran --Japan--Malagasi--Singapore--South Korea--Sri Lanka--Tanzania0752501-NUTMEG--Dubai--India--Indonesia--Iran --Singapore--Sri Lanka

208


0752502-MACE2. --China3. --Guatemala4. --Indonesia5. --Malaysia6. --Singapore7. --Sri Lanka

0752503-CARDAMOMS, SMALL

1. --China2. --Dubai3. --Guatemala4. --Guinea5. --India6. --Indonesia7. --Singapore8. --Tanzania

0752504-CARDAMOM, LARGE

1. --Dubai2. --India3. --Iran4. --Nepal5. --Singapore6. --Tanzania

0752601-ANISE SEED1. --Afghanistan2. --Dubai3. --India4. --Iran5. --Singapore6. --Viet Nam

0752602-FENNEL SEEDS1. --Afghanistan2. --India

0752603-CORIANDER SEEDS


0752604-CUMIN SEEDS1. --Afghanistan2. --Iran3. --Japan

0752605-CARAWAY SEEDS1. --Afghanistan2. --Dubai3. --India4. --Egypt

0752700-GINGER (EXCLUD PRES IN SUGAR)

1. --Afghanistan2. --China3. --Hong Kong4. --Singapore

0752802-SAFFRON1. --Dubai2. --Spain

0752803-BAY LEAVES1. --India2. --Iran3. --Sri Lanka

0752901-TURMERIC1. --Afghanistan2. --India3. --Iran4. --Singapore

0752902-CURRY--Thailand0752903-DILLSEED--India0752904-CHILLIES, DRY--Afghanistan--Dubai--India--Iran0752919-OTHER SPICES NS--Afghanistan--Dubai--Hong Kong--India--Singapore--Sri Lanka--Tanzania--Egypt

(Source: Foreign Trade Statistics of Pakistan 2000-01)

6. Export value of coffee, tea, mate & spices and share of individual items in the total export (two years)

SITC Item

2000-01 1999-00

000’ USD

% of total import of coffee, tea,

mate & spices

000’ USD


mate & spices

0741100 Green tea (not firm) in pack 7 0.06 - 0

0741200 Other green tea not fermentated - 0.00 - 0

0741300 Black tea (ferment) pack of 3 kg 129 1.02 - 0

0752601 Anise seed 4 0.03 85 0.61

0752602 Fennel seeds 349 2.74 159 1.14

0752603 Coriander seeds 45 0.36 18 0.13

0752604 Cumin seeds 454 3.57 3,240 23.31

0752605 Caraway seeds 111 0.87 567 4.08

0752607 Methi seed (fenugreek) 409 3.21 125 0.90

0752901 Turmeric 163 1.28 117 0.84

0752902 Curry 95 0.75 177 1.27

0752903 Dillseed 85 0.67 224 1.61

0752904 Chillies, dry 1,289 10.13 774 5.57

209


SITC Item

2000-01 1999-00

000’ USD


mate & spices

000’ USD


mate & spices

0752905 Chilly powder 1,688 13.28 1,130 8.13

0752919 Other spices ns 7,890 62.04 7,281 52.40

Total 12,717 100.00 13,897 100.00


210


A. Coffee

1. Import value of coffee in 2000-01

Item 000’ USD% of total import of

coffeeCoffee unroasted not decafinated 52.27 24 Coffee unroasted decafinated 9.25 4 Coffee roasted not decafinated 14.58 7 Coffee roasted decafinated 0.43 0 Instant coffee 139.83 65 Coffee paste - -Total 216.36 100


211


2. Import volume of coffee


growth rate

000' Kgs

000' Kgs

Growth rate (%)

000' Kgs

Growth rate (%)

000' Kgs

Growth rate (%)

000' Kgs

Growth rate (%)

0711100Coffee unroasted not decafinated

-

53.34 -

25.34

(52.49)

81.84

222.98

15.41

(81.17) -

0711200Coffee unroasted decafinated

13.55

19.62 44.81

3.99

(79.64)

9.55

139.11

2.21

(76.84) 6.86

0712001Coffee roasted not decafinated

20.31

0.25 -98.77

-

(100.00)

0.66 -

2.42

269.92 -

0712002Coffee roasted decafinated

10.00

- -100.00

- -

0.11 -

0.09

(14.55) -

0713101 Instant coffee 1

03.04

0.05 -99.95

0.49 814.81

-

(100.00)

40.05 - -


3.71 -

-

(100.00)

1.50 -

-

(100.00) -

Total 14

6.89 7

6.97 -47.60

29.83 (

61.25)

93.66 214

.00

60.19 (35.

74) 17.35


3. Projected import of coffee

Import in2000-01

Average growth rate

(%)

Projected import (000’ Kgs.)

2001-02 2002-03 2003-04 2004-05 2005-06

60.19 17.35 70.63 82.89 97.27 114.14 133.95

212


4. Export volume of coffee

Figures in 000’ Kgs

SITC Item 1996-97 1997-98 1998-99 1999-00 2000-01

0713101 Instant coffee 7.5 0 0 0 0(Source: Foreign Trade Statistics of Pakistan 2000-01)

5. Consumption of coffee

1996-97 1997-98 1998-99 1999-00 2000-01

Production 0 0 0 0 0

Imports 146.89 76.97 29.83 93.66 60.19

Exports 7.5 0 0 0 0

Consumption 139 77 30 94 60

Consumption growth rate - -44.60 -61.04 213.33 -36.17

6. Average growth rate of consumption of coffee for the five years stands to be 17.88%

213


7. Projected consumption of coffee

Consumption in 2000-01

Average consumption growth rate

Projected consumption (000’ Kgs)

2001-02 2002-03 2003-04 2004-05 2005-06

60 17.88 71 83 98 116 137

Projected consumption of coffee is increasing at a growth rate of 18% approx.

B. Tea

1. Production of tea

The experiments of growing tea in the northern Pakistan have been quite successful. But the production is still on experimental bases, and commercial production/cultivation will take many years to take place.

From 1974 to 1971, Pakistan’s entire requirements were met from tea producers in East Pakistan (now Bangladesh). After the separation of East Pakistan, tea was allowed to be imported and Sri Lanka became the major source of supply from 1972 to 1979. In 1979, when prices in Sri Lanka rose sharply due to drought, the imports from Kenya and other African countries started. Kenyan tea found ready acceptance in Pakistan. Now Pakistan is the largest buyer of Kenyan tea.

Around 10 to 15 per cent of the tea consumed in Pakistan is smuggled. Before 1998, it was 25%.

The Pakistan’s tea market can be classified broadly into two categories; blended/packaged tea market and loose tea market.

There are two major blending companies that are Lever Brothers Pakistan (with Brook Bond and Lipton brands) and Tapal Tea (Pvt.) Ltd. (with Tapal brand).

Blended/packaged tea represents appx. 55% of the total trade.

214


Currently there is not in operation any tea processing facility in Pakistan. The first tea processing plant is under completion. But its annual capacity of processing 365,000 kg of tea per year (1,000kg per day) would be a fraction of the countries demand.

2. Import value of tea in 2000-01

Item 000’ USD % of total import of tea

Green tea (not firm) in pack 36.73 0

Other green tea not fermentated 1,394.21 1

Black tea (ferment) pack of 3 kg 2.27 0

Tea dust 2,301.08 1

Other black tea 195,762.32 98

Total 199496.61 100

3. Import volume of tea (five years)


growth rate000' Kgs 000' Kgs

Growth rate (%)

000' KgsGrowth rate (%)



0741100Green tea (not firm) in pack 108.14 35.7 -66.99 3.48 -90.25 9 158.62 59.43 560.33 140.43

0741200Other green tea not fermentated 460.98 707.9 53.56 1,183.11 67.13 1,467.02 24.00 1,697.53 15.71 40.10

0741300Black tea (ferment) pack of 3 kg - - #VALUE! 7.5 #VALUE! 8.5 13.33 1.08 -87.29 #VALUE!

0741401Tea dust 1,378.57 984.76 -28.57 412.04 -58.16 1,169.03 183.72 1,919.00 64.15 40.29

0741409Other black tea 83,478.28 96,920.96 16.10 118,088.49 21.84 105,990.24 -10.25 108,189.70 2.08 7.44

Total 85,426 98,649 15.48119,695 21.33108,644 -9.23111,867 2.97 7.64

215


Import has increased over the last 5 years and still shows a growing trend in the projection below.

4. Projected import of tea

Import in2000-01

Average growth rate

(%)


2001-02 2002-03 2003-04 2004-05 2005-06

111,867 7.64 120,414 129,613 139,516 150,175 161,648

5. Export volume of tea


SITC Item 1996-97 1997-98 1998-99 1999-00 2000-01

741100 Tea green (not ferm) in pack 0.00 0.00 0.98 0.00 2.44741409 Tea black other 0.00 10.20 0.00 0.00 33.51

Total 0.00 10.20 0.98 0.00 35.94

216


6. Consumption of tea

1996-97 1997-98 1998-99 1999-00 2000-01

Production 0 0 0 0 0Imports 85,426 98,649 119,695 108,644 111,867Exports 0.00 10.20 0.98 0.00 35.94Consumption 85,426 98,639 119,694 108,644 111,831Consumption growth rate - 15.47 21.35 -9.23 2.93

Average growth rate of consumption of tea for the five years stands to be 7.63%.

7. Projected consumption of coffee

Consumptionin 2000-01

Average consumption growth rate

Projected consumption (000’ Kgs)

2001-02 2002-03 2003-04 2004-05 2005-06

111,831 7.63 120,362 129,544 139,426 150,063 161,510

217


C. Mate

1. Import volume of mate



Growth rate (%)




0743100 Mate 10.5 1.82 -82.67 4.02 120.88 7.28 81.09 0 -100 4.83

2. Projected import of mate

Import in1999-00

Average growth rate

(%)


2001-02 2002-03 2003-04 2004-05 2005-06

7.28 4.83 7.63 8.00 8.39 8.79 9.22

218


3. Export volume of mate


SITC Item 1996-97 1997-98 1998-99 1999-00 2000-01

0743100 Mate 0 0.94 16.32 0 0

4. Consumption of mate


1996-97 1997-98 1998-99 1999-00 2000-01

Production n.a. n.a. n.a. n.a. n.a.Imports 10.5 1.82 4.02 7.28 0Exports 0 0.94 16.32 0 0Consumption n.a. n.a. n.a. n.a. n.a.

n.a. = data not available

219


D. Spices

1. Import value of spices in 2000-01 and the share of individual items

Item 000’ USD% of total import of

spicesPepper black 3,350.05 20Pepper white 75.57 0Pepper and pimento ns 55.61 0Fruit of genus capsicum/piment 47.11 0Vanilla 2.64 0Cinamon flower not crush/ground 2,191.39 13Cinamon frower crushed/ground 30.41 0Clove (fruit, cloves and stem) 1,266.88 8Nutmeg 648.39 4Mace 216.58 1Cardamoms, small 1,846.12 11Cardamom, large 4,029.47 24Anise seed 171.01 1Fennel seeds 22.85 0Coriander seeds 832.74 5Cumin seeds 321.72 2Caraway seeds 84.13 1Ginger (exclud. pres in sugar) 464.58 3Saffron 14.66 0Bay leaves 17.56 0Turmeric 105.8 1Curry 0 -Dillseed 37.84 0Chillies, dry 549.93 3Other spices ns 153.13 1Total 16,536.17 100

220


2. Import volume of spices with growth rate (five years)



Growth rate (%)




0743200Extract etc. of tea/mate & prep 3.12

0.30 (90.29)

26.64

8,692.08

1.85 (93.05)

- (100.00) 2102.19

0751101 Pepper black 1,894.67 402.8

6 (78.74) 1,574.7

6 290.

90 699.8

9 (55.56) 2,152.

65 207.57 91.04

0751102 Pepper white 10.02 1.0

2 (89.79) 16.3

1 1,494.

33 8.5

4 (47.66) 18

.09 111.93 367.20

0751109 Pepper and pimento ns 13.50 12.7

5 (5.56) 31.6

2 147.

96 51.4

9 62.88 37

.79 (26.61) 44.67

0751200 Pepper crushed or ground - - - 2.4

5 - - (100.00) - - -

0751300Fruit of genus capsicum/piment 13.50

1.37 (89.85)

13,985.15

1,020,713.72

2,730.37 (80.48)

62.23 (97.72) 255111.42

0752100 Vanilla 27.10 - (100.00) - - 30.0

0 - 0

.72 (97.60) -

0752200Cinamon flower not crush/ground 637.89

999.10 56.62

1,316.65

31.78

1,641.21 24.65

2,001.96 21.98 33.76

0752300Cinamon frower crushed/ground 26.73

2.00 (92.52)

97.69

4,784.30

42.00 (57.01)

26.56 (36.76) 1149.50

0752400Clove (fruit, cloves and stem) 591.01

979.15 65.67

1,499.49

53.14

421.32 (71.90)

378.10 (10.26) 9.16

0752501 Nutmeg 305.27 179.4

9 (41.20) 245.1

0 36.

55 128.7

5 (47.47) 213

.61 65.91 3.45

0752502 Mace 114.52 58.3

6 (49.04) 63.9

5 9.

58 164.1

7 156.71 40

.45 (75.36) 10.47

0752503 Cardamoms, small 105.45 363.4

5 244.67 251.6

8 (30.

75) 378.7

3 50.48 280

.97 (25.81) 59.65

0752504 Cardamom, large 855.76 1,027.7

4 20.10 1,050.2

6 2.

19 909.9

8 (13.36) 1,020.

02 12.09 5.26

0752601 Anise seed 83.82 205.0

7 144.67 22.2

0 (89.

18) 3.3

6 (84.85) 286

.67 8,426.83 2099.37

0752602 Fennel seeds 55.41 868.5

1 1,467.47 399.6

0 (53.

99) 13.8

2 (96.54) 33

.77 144.29 365.31

0752603 Coriander seeds 6,716.21 6,969.0

7 3.76 5,276.5

7 (24.

29) 5,984.2

4 13.41 6,439.

19 7.60 0.12

0752604 Cumin seeds 1,610.16 1,511.2

6 (6.14) 4,374.3

5 189.

45 2,763.1

7 (36.83) 994

.48 (64.01) 20.62

0752605 Caraway seeds 141.18 13.6

5 (90.33) 133.3

6 877.

30 46.4

4 (65.17) 183

.02 294.06 253.96

0752607 Methi seed (fenugreek) 11.13 6.0

0 (46.11) 2.5

2 (58.

00) - (100.00) - - -

0752700Ginger (exclud. pres in sugar) 627.77

611.98 (2.52)

477.94

(21.90)

488.37 2.18

516.35 5.73 -4.13

0752802 Saffron - - - - - - - 0

.77 - -

0752803 Bay leaves 239.09 227.0

0 (5.06) 74.2

4 (67.

29) 8.7

7 (88.19) 73

.86 742.38 145.46

0752901 Turmeric 4,302.48 2,339.3

3 (45.63) 2,276.3

7 (2.

69) 56.1

1 (97.54) 259

.55 362.56 54.18

0752902 Curry - - - - - 0.0

8 - - (100.00) -

0752903 Dillseed - 29.1

3 - - (100.

00) - - 47

.99 - -

0752904 Chillies, dry 1,298.61 1,557.2

9 19.92 3,307.6

5 112.

40 6,213.3

0 87.85 684

.69 (88.98) 32.80

0752905 Chilly powder - 35.8

0 - 73.3

6 104.

91 - (100.00) - - -

0752919 Other spices ns 188.56 46.6

2 (75.28) 149.9

8 221.

70 70.2

4 (53.17) 60

.46 (13.92) 19.83

Total 19,872.96 18,448.27 (7.17) 36,729.88 99.

10 22,856.20 (37.77) 15,813.

91 (30.81) 5.84

221


3. Projected import of spices

Import in1999-00

Average growth rate

(%)


2001-02 2002-03 2003-04 2004-05 2005-06

15,814 5.84 16,737 17,715 18,749 19,844 21,003

Imports of spices will increase by 6% over the next 5 years, consistently.

4. Export volume of spices


SITC Item 1996-97 1997-98 1998-99 1999-00 2000-01

0752601 Anise seed 25 48 659 207 5 0752602 Fennel seed 90 169 125 354 686 0752603 Coriander seeds 44 28 77 37 47 0752604 Cumin seed 1,765 1,517 587 3,422 427 0752605 Caraway seeds 526 428 77 568 108 0752606 Juniper - 15 - - - 0752607 Methi seed 9 200 474 200 716 0752901 Turmeric 73 693 108 231 426 0752902 Curry 3 41 65 138 70 0752903 Dillseed - 119 214 522 206 0752904 Chillies, dry 415 427 207 726 1,610 0752905 Chilly powder 405 613 725 1,009 1,656 0752919 Spices ns other 4,438 4,663 4,818 6,433 6,511

Total 7,794 8,961 8,136 13,847 12,469

222


5. Consumption of spices

1996-97 1997-98 1998-99 1999-00 2000-01

Production n.a. n.a. n.a. n.a. n.a.Imports 19,872.96 18,448.27 36,729.88 22,856.20 15,813.91Exports 7,794 8,961 8,136 13,847 12,469Consumption n.a. n.a. n.a. n.a. n.a.

n.a = data not available

IV. IMPORT POLICY AND PROCEDURES

1. Import licenses for public sector/government undertakings


2. Importer’s registration criteria




223


3. Import duties

HS no. ItemCustoms Duty

(ad val.)0901.1100 Coffee, not roasted, not decaffeinated 20%0901.1200 Coffee, not roasted, decaffeinated 20%0901.2100 Coffee roasted, not decaffeinated 20%0901.2200 Coffee, roasted, decaffeinated 20%0901.9000 Other coffee 20%0902.1000 Green tea (not fermented) upto three kg packing 30%0902.2000 Other green tea (not fermented) 30%0902.3000 Black tea (fermented) upto three kg packing 30%0902.4000 Other black tea (fermented) and partly fermented tea 30%0903.0000 Mate 30%0904.1100 Pepper, neither crushed nor ground 20%0904.1200 Pepper, crushed or ground 20%

0904.2000Fruits of the genus capsicum or of the genus pimenta, dried or crushed or ground

10%

0905.0000 Vanilla 20%

0906.1000Cinnamon & cinnamon tree flowers, neither crushed nor ground

20%

0906.2000 Cinnamon & cinnamon tree flowers, crushed or ground 20%0907.0000 Cloves (whole fruit, cloves and stems) 20%0908.1000 Nutmeg 20%0908.2000 Mace 20%0908.3000 Cardamoms 20%0909.1000 Seeds of anise or badian 20%0909.2000 Seeds of coriander 20%0909.3000 Seeds of cumin 20%0909.4000 Seeds of caraway 20%0909.5000 Seeds of fennel, juniper berries 20%0910.1000 Ginger 20%0910.2000 Saffron 20%0910.3000 Tuemeric 20%0910.4000 Thyme; bay leaves 20%0910.5000 Curry 20%0910.9100 Other spices, 20%


224


4. Preferential

Exemption of specific rates have been allowed on the imports into Pakistan from the SAARC member states (for the least developed countries), if made in the conformity with the SAARC Rules of Origin issued by Ministry of Commerce [SRO No. 374(1)/2001], for the following items:

HS no. ItemExemption on leviable rates of

customs duty0904.1100 Pepper, neither crushed nor ground 10%0907.0000 Cloves 10%0908.1000 Nutmug 10%0908.2000 Mace 10%0908.3000 Large cardamum 10%0909.3000 Cummin black 10%0910.1000 Fresh ginger 10%0910.1090 Dry ginger 15%




Income tax: 8% With holding tax: 5%Port handling charges: $0.9/ton D.O. charges charged by the shipping line: Appx. $90 to $ 180 per container depending upon

weight and nature of goods.

Source: BIZ Corporation/Digest of Industrial Sectors 1999-00/The Dawn – Dec. 27, 2001






225


8. Import channels

Almost entire the import of the relative items is made through sea. The consignments are destined either to Karachi Sea Port or to the dry ports in different cities like Lahore, Sialkot, Multan, etc. If the importer is Lahore- based, he would prefer to receive his consignment at Lahore Dry Port. This not only provides him proximity to the port as well as ease in clearing his goods but also saves him $150 to $500 per container.



Following channels are used to market the imported sugar and sugar confectionery products:

Exporter Importer Wholesaler/distributor Retailer CustomerExporter Importer Retailer CustomerExporter Importer (only super markets) CustomerExporter Consumer (manufacturer/packer)

10. Mark-up in distribution

The mark-up at different levels of distribution is as under:

Importer 40% to 80%Wholesaler 15% to 30%Retailer 15% to 40%

In case the importer is itself a wholesaler or packer/grinding mills, the mark-up increases accordingly.



Export Promotion Bureau (EPB)5th Floor Block A, Finance & Trade Centre, Shahra-e-Faisal KarachiTel. 21-9202718

Lahore Chamber of Commerce & Industry11-Shahra-e- Aiwan-e-TijaratLahoreTel. 6365737-42Fax 6368854

226


Small & Medium Enterprise Development Authority (SMEDA)GM Sind, 5th Floor Block A, Finance & Trade Centre, Shahra-e-Faisal Karachi Tel. 21-9206491, 9201517Fax 9206477

HEAD-OFFICE MINISTRY OF FOOD, AGRICULTURE AND LIVESTOCKPAK SECRETARIAT BLOCK-A, ISLAMABAD, PAKISTANTel. 51-9203307, 51-9210351Fax 51-9221246

PAKISTAN RESTAURANTS & CATERERS ASSN. LYRIC BAR B.Q., GARDEN ROAD KARACHITel. 021-7737738

227

pakistan

Documents

01trade classification

public sectorgovernment

pro je ct

strategic

foreign trade

pr oje ct

sweetened

regional emerging