Businessmen reject proposal to ban export of perishable goods – Business & Finance
ISLAMABAD: The country’s business community rightly rejected the proposal of the National Price Committee (CNP) where the Minister of Finance wanted to ban the export of perishable goods for a period of three months to control inflation.
Former head of horticultural exports of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Ahmad Jawad said the move could hurt horticultural exports as Prime Minister Imran Khan wanted to increase exports in the country. optimal level and achieve that the whole sector be executed in the same balance.
He said the Pakistani horticultural sector contributes around $ 750 million to the state treasury every year, excluding halal meat, rice and other food items. Pakistan could not even export 50 percent of the production of onions, tomatoes and other fruits, our maximum export volumes of each crop not exceeding 10 percent.
“We are the fifth largest onion producer producing over two million tonnes, but onion producers are still getting minimal rates. Their only incentive is to resume onion exports in order to obtain better rates of onion. the exporter’s share “.
In FY21, Pakistan’s food exports amounted to $ 4.393 billion from $ 4.361 billion last year, showing growth of 0.74 percent. Of these, more than $ 2 billion was for rice exports alone, while the rest was for other food products.
Ahmad Jawad also rejected the idea that the decision was likely made due to seasonal variations, the development of the situation in Afghanistan, and said that domestic prices could be brought under control through effective oversight by the administration of the district, because each product had to be passed on to the consumer for three to four intermediaries.
He was of the opinion that “if the government controls this, consumers can certainly get affordable tariffs. Second, diesel prices should be reduced because the continuous rise in diesel prices is one of the main factors of inflation. In progress.” On the other hand, Iran has lifted restrictions on the importation of kinnow from Pakistan this year, which would be a big boost for the kinnow industry.
After nine years, the Iranian market will be open for the 2021-2022 season. Iran had a market for 80,000 to 90,000 tonnes of Pakistani kinnow, which was the largest after Russia, Jawad said, adding that a tonne of citrus is valued at around $ 500. “As a result, our neighboring country’s market is worth approximately $ 45 million which will be added on top of our horticultural exports.”
It can be recalled here that Finance Minister Shaukat Tarin on Wednesday ordered an immediate ban on the export of perishable goods amid fears of a further rise in food inflation in Pakistan due to surging international markets. The Minister of Finance also ordered the Ministry of Commerce to speed up the process of banning exports of perishable goods in consultation with the Ministry of National Food Security and Research for the next three months.
Copyright Business Recorder, 2021