PFVA warns blocked markets leave 2m tonne potato surplus at risk, seeks $30 DLTL relief
KARACHI:
All Pakistan Fruit & Vegetable Exporters, Importers & Merchants Association (PFVA) has expressed grave concern over a sharp decline in export volumes, warning that the fruit and vegetable sector is nearing a breaking point. The association said a massive spike in international freight charges, coupled with persistent regional trade restrictions, has effectively neutralised the competitiveness of Pakistani produce in global markets.
In a conversation with The Express Tribune, PFVA Patron-in-Chief Waheed Ahmed said freight costs have more than doubled compared to the previous season. He noted that freight for a 24-tonne consignment or a 40-foot container, which stood between $3,000 and $3,500 last year, has surged to $7,000 to $8,000. According to Ahmed, this exponential increase has pushed export targets for fruits and vegetables out of reach, as the financial burden has become unsustainable for most exporters.
The situation has been aggravated by the closure of the Afghanistan border, disrupting traditional trade routes. Ahmed explained that when exports moved through Afghanistan, freight costs averaged $3,000, but diversion to the Iran route has raised costs to around $8,000. Beyond higher expenses, logistical delays have become damaging. Shipments that earlier reached destinations within seven to eight days now take 15 to 20 days, which is particularly harmful for perishable items such as kinnows and potatoes, often resulting in quality degradation before arrival.
To mitigate these pressures, PFVA has urged the government to provide support of $30 per tonne under the Drawback of Local Taxes and Levies (DLTL) scheme. Ahmed said such support has become essential to keep the industry afloat and compensate for the surge in logistics costs.
He also stressed the need for improved production forecasting, noting that potato output has climbed to 12 million metric tonnes, around two million tonnes higher than last year. This surplus, he warned, cannot be absorbed under the current restricted trade environment and limited export routes.
The primary potato supply chain originates from Okara district in Punjab, from where produce is transported to overseas markets. “If we continue to overproduce without opening new trade corridors, we will be forced to dump our produce at a loss,” cautioned Ahmed. Pakistan currently exports potatoes to Sri Lanka, the United Arab Emirates (UAE), Malaysia, Qatar, Oman and Kazakhstan.
Looking ahead, PFVA leadership is calling for a strategic shift in market access. With the kinnow season nearing its end and a large potato surplus available, Ahmed urged the Department of Plant Protection to urgently resolve quarantine issues in high-value markets. He said opening trade corridors to China, Indonesia and Europe is critical to absorbing the two-million-tonne surplus.
Beyond logistics, PFVA is also urging immediate anti-terrorism measures to restore stability and break the trade deadlock at the border. Ahmed said Afghanistan remains both a key transit route and an important market for Pakistani produce. The association believes securing the border is essential to reopening trade routes, easing pressure on exporters and ensuring the 12-million-tonne potato crop reaches international markets.
