Pakistan's Mango Exports Decline Amid Middle East Conflict Disruptions

Pakistan's mango exports are facing a significant decline, with projections indicating a drop of at least 30% this season. This downturn is attributed to the ongoing conflict in the Middle East, which has disrupted trade routes and increased freight costs, according to traders and exporters. The mango season, which commenced in June in Sindh, has been negatively affected despite a late preliminary agreement between the United States and Iran, which was unable to help the current export window.

Pakistan, the world's fourth-largest mango exporter, typically earns around $110 million annually from international sales of over two dozen varieties. However, this year, the economic viability of mango orchards, especially in regions like Tando Allah Yar known for the Sindhri variety, has been severely impacted. Some orchard operators reported that contractors have abandoned their leases despite having paid advances.

Impact on Exports and Regional Trade

The All Pakistan Fruit and Vegetable Exporter Association's chief patron, Waheed Ahmed, stated that nearly 80% of Pakistan's mango exports are directed towards the Gulf region, Iran, and Afghanistan. However, these areas have experienced significant conflict-related trade disruptions. This season, total mango exports are expected to fall to approximately 80,000 tonnes, a decrease of about 30,000 tonnes from the previous year, primarily due to border closures with Afghanistan and regional conflicts.

Waheed Ahmed highlighted that despite ceasefire developments, major obstacles remain for exporters this season. He noted that maritime disruptions around the Strait of Hormuz have significantly increased freight costs, with the cost of shipping a 25-tonne container rising from $1,400 last year to between $6,000 and $7,000 currently.

Domestic Market Challenges

In the domestic market, the increased supply of mangoes has led to lower prices. In Karachi, mango prices have halved compared to last year, selling at about Rs200 per kilogram. Despite this, weakened household purchasing power has limited sales, as inflation has risen to 10% following the conflict's onset, compared to 5.5% earlier this year.

Local consumers, facing rising living costs, are prioritizing essential purchases over mangoes, despite their affordability. Orchard manager Mohammad Shakeel noted that while local mango prices are lower, consumers are still unable to afford them due to broader economic challenges. "Expenses are rising… income is low. Should they buy their bread first or our mangoes?" he remarked.