TDAP to help businesses in setting up cold chain systems

[Naveed Yaseen]

By Tanveer Ahmed
KARACHI: Trade Development Authority of Pakistan (TDAP) plans to put in place cold storage/cool chain infrastructure to prevent huge post harvest losses and preserving quality in fruits, vegetables and flowers.

According to officials in TDAP, the need for establishment of such an infrastructure has been felt since long and was also envisaged in trade policy of current financial year.

For this purpose, government in trade policy 2009-09, provided an incentive to horticulture export enterprises by offering soft loans for cool chain and cold storage.

However, according to TDAP, the facility is now available to all users whether the unit is export oriented or not.

Officials said that the plan namely “cool chain and cold storage for horticulture products” would be operational shortly. Business concerns selected for financial assistance under this scheme will be allowed to enjoy various incentives.

Officials pointed out that the adequate infrastructure for horticulture products has been a major issue in the export as substantial quantity of horticulture products is wasted in harvesting stage to shipment of export consignment.

The matter also surfaced in a meeting of exporters with Federal Minister for Commerce last month and demanded the government to act in this regard.

Horticulture export association also sought the concessions in the next budget for establishment of cool chain system. One specific proposal relates to exemption of custom duty on import of machinery and plants for cool chain system

Horticulture sector contributes about 12 percent to Pakistan`s agriculture GDP, and has great potential for increasing the production and export of premium quality horticultural products besides offering multiple employment opportunities throughout the supply chain, particularly in the rural areas.

Approximately 12 percent of the 13.67 million tons of annual production of fruits and vegetables in the country is lost due to primitive and poor techniques of handling between farms and the end-consumers.

Improper post-harvest handling of agriculture produce results into quantity and quality losses in addition to rise in consumer prices. These losses bring low return to growers, processors and traders and country also suffers in terms of foreign exchange earnings. Main causes of this loss, both in term of quality and quantity, are the result of stress related to excessive or insufficient heat or cold, improper mixtures of environmental gases, poor nutrients and inadequate storage and transportation facilities.

Worldwide average food grain losses have been put at 5 percent. In the developed countries, losses have been generally at 1 percent while 10 to 30 percent losses have been reported for developing countries.

In Pakistan, out of 13.674 million tonnes of fruits and vegetables produced annually, it is estimated that about 35 to 40 percent are wasted, losses varying from 6 percent each in almond and walnuts, to more than 50 percent in case of cherry, Mulberry and apricot 5 percent, while 4 percent of exported horticulture of the country fetch 41 percent lower prices as compared to world average price due to below standard post-harvest management.

Country exported $112.075 million worth fruits in first eight months of current fiscal over $103.376 million in the corresponding period of previous year, reflecting 8.41 percent increase. Fruits export were mainly comprised of citrus, mango and dates.

Vegetables export fetched $38.331 million in the period under review against $36.901 million in the previous.

http://www.dailytimes.com.pk/default.asp...2009_pg5_9