Last season was not so good for the kinnow fruit in Pakistan. Prices were low and insufficient to support the farmers producing it. Farmers requested a session with the local government in the country’s main region for kinnow production, to discuss a fair price for the fruit.
According to Muhammad Ahsan Goraya, Managing Director of Sargoda Mandarin, “The kinnow farmers of the region demanded 800 Pakistani Rupees (PKR) per 40 kg (mond) for both grade A and B kinnows. Processors are only willing to buy grade A kinnows for 800 PKR per mond. But the farmers were not willing to compromise their initial demand for both grades. Unfortunately for the farmers the meeting ended without any fruitful results, negotiations will continue in November 2017.”
The government of Punjab and the federal government are worried about the results of the preliminary negotiations, as they may affect kinnow exports, which will start in November. Given the uncertainty on prices, growers are now keeping the kinnow hostage until their higher price demands are met.
Goraya says, “The only way the processors would be willing to buy is if the farmers decrease their demanded rate to 700 – 750 PKR per mond, including grade B kinnows. This adjusted demand would trigger an immediate start of the harvest. This year expected export volume is 4 to 5 metric ton out of total production that is 20 -22 LAC metric ton.
“The difference this year will be the quality. Russia will be the recipient of 30 – 40% of these fruits. Our company is broadening its horizons to other countries such as Indonesia and Belarus. The issue with Qatar and the other gulf regions has also opened up a door for our exports to enter Qatar. We have good relationships and agreements with a lot of countries, which will enable us to expand. Our market for this season would look something like this:- the UAE, Iraq Kuwait, Qatar, the Philippines; Ukraine, Russia, South Korea and, especially, Indonesia”, Goraya concludes.
