A meeting of Kinnow growers & exporters was held in the office of Deputy Commissioner – Sargodha (Madam Aseya Gul) on 14th Oct , 2019 and the rate of Kinnow for the next season was fixed at Rs. 1000 per 40 Kg . (Copy of hand out # 1195 dated 14th Oct. 2019 is attached).
The Association (PFVA) has serious reservations about this meeting being an illegitimate in nature conducted by an office beyond it’s legal jurisdiction and hence the decision taken to fix up rate of Kinnow also stands null and void. It’s astonishing that the Association being a main stakeholder was not involved in this consultative meeting. It was further learnt through well-placed sources that certain influential people of Sargodha having their own financial interest got this rate fixed up without given even the slightest thought about the poor exporters who are likely to become victim of this high rate of Kinnow later.
The cost of exporting Kinnow shipment is already relatively high compared to other competitors exporting Kinnow to the big International market of Russia and upward revision of cost of Kinnow would further deepen this issue leaving aside the quality factor which remains equally concerning .
In this regard, we like to submit the following justifications that upward revision of rate of Kinnow this year would certainly be unfavourable from perceptive of the exporters of Kinnow:
- Last year (2018) the exchange rate was 1 UDS = PKR 130 whereas this year (2019) it is 1 USD = PKR 156 which is continuously sliding downward with stability in the economy of the country
- Cost of fuel has gone up significantly adding to cost factor
- Overhead expenses including utilities services such electricity, gas and water have also been increased, another factor contributing to the cost factor
- We pay freight charges in USD and hence upward fluctuation does have pronounced impact on cost factor.
- The cost of corrugated box which is imported for packaging has also multiplied due to exchange rate, adding further to cost factor.
- Recent implementation of load Axle regime (weight limitation for trucks) by the GoP has resulted in financial losses to the exporters and thus further added to cost factor.
- Our main buyer of Kinnow is Russia but with stiff competition from Egypt , Morocco , Turkey and China due to availability of numerous varieties and better quality while we only have issues of one variety &poor quality which is a serious limitation to remain competitive in this big market (Russia )
Compounded with the factors stated above, the illegitimate decision to enhance rate of Kinnow for the next season will lead to closure of numerous processing units in the District Sargodha and around 30,000 workers directly or indirectly associated with the processing units would become jobless and it would further “add “ to a large number of unemployed workers to the existing “Jobless force” of the country , an alarming situation which is most likely to enhance rate of crime and instability in the country . The country would also badly suffer by getting deprived of valuable foreign exchange, which we just can not afford while the economy still struggles to get out of current crises.
In view of the above and keeping the supreme national interest in view, we would request that the decision taken by the Deputy Commissioner in fixation of new rate for the Kinnow shall be revoked.
