Comparative Analysis: How Supply Chain Disruptions and Climate Change Are Impacting Mango Exports in Pakistan and India

Pakistan and India, two of the world's leading mango producers, face significant challenges in their industries. Both countries grapple with reduced production and quality issues due to climate change, trade disruptions, and supply chain inefficiencies. However, their responses to these challenges have varied, highlighting different strategies and outcomes in their respective mango export sectors.

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Pakistan's Struggling Mango Industry

Pakistan's mango industry, once a robust contributor to the country's export earnings, is currently in decline. The sector must grapple with reduced production and quality issues attributed to climate change, trade disruptions, and inadequate domestic policies. This year, the export target for Pakistani mangoes has been cut from 125,000 tonnes to 100,000 tonnes, reflecting a troubling trend.

Mango production in Pakistan, which typically stands at around 1.8 million tonnes annually, is projected to drop to 1.2 million tonnes this year. Waheed Ahmed, patron-in-chief of the All Pakistan Fruit and Vegetable Exporters Association, highlighted the ongoing struggle: "The effects of climate change have emerged as the biggest threat to mango production, which can well be gauged from the fact that mango production has declined for the third year in a row".

High temperatures and water shortages have severely impacted mango orchards across the country. The Pakistan Bureau of Statistics (PBS) pointed out that these adverse weather conditions and transportation and supply chain issues significantly contribute to the decreased production of mangoes and other fruits. PBS's 2023 annual report on external trade statistics underscored the negative impact on foreign exchange earnings due to the declining mango exports.

Traders have criticized the Pakistani government for lacking focus on research and development (R&D) to address the challenges of mango growers. Key issues include the development of new seed varieties, agri-tech, awareness, and improvements in farming operations. Traders also cited "favouritism" by the Department of Plant Protection (DPP) as a reason for the decline in mango exports. They allege that the DPP allowed subpar hot water treatment plants to operate, which affected the quality of exported mangoes.

The food processing sector is also reeling from increased electricity, gas, transportation, garden maintenance, pesticides, and water management costs. The imposition of a 20 per cent excise duty and an 18 per cent Goods and Services Tax has further strained the sector. Mubashar Durrani, a mango grower from Multan, lamented the need for more interest from fruit juice companies in purchasing mangoes left over from exports.

Farmers cannot earn fair remuneration and often have to sell their produce at lower rates in the domestic market. Fayyaz Chaudhry, another mango grower from Multan, explained, "Most of our produce is exported, but demand fluctuates. We sell to local pulp producers who supply juice makers during declines." The perishable nature of the mango varieties grown in Pakistan forces farmers to sell at throwaway prices without adequate export and value-added facilities.

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India's Strategic Response

In contrast, India has turned its mango export industry into a success story through strategic investments and innovative approaches. India is the largest producer of mangoes globally, accounting for around 50% of global production. Reliance Industries has been pivotal in transforming India's mango export sector.

Reliance's entry into agri-business in the early 2000s involved setting up small retail stores and supporting farmers with knowledge and financing. By 2010, Reliance had conducted an extensive pilot project to export mangoes to high-potential markets like Europe and the Middle East. The pilot was successful, leading to the launch of Reliance Agri Products Exports in 2011.

Reliance strategically invested over $150 million to modernize and upgrade India's mango supply chain infrastructure. Critical investments included state-of-the-art pack houses, a robust cold chain network, and farmer training programs. These efforts ensured the consistent production of export-grade mangoes and reduced spoilage during transit.

Technological innovations also played a crucial role. Reliance leveraged blockchain technology for traceability, controlled ripening technology from Israel, and advanced analytics to enhance supply chain efficiency. These innovations helped establish India as a reliable source of high-quality mangoes, enabling the country to compete with established exporters like Pakistan and Mexico.

Comparative Outcomes

The contrasting approaches of Pakistan and India highlight the importance of strategic investment and innovation in addressing the challenges faced by the mango industry. While Pakistan struggles with climate change, supply chain issues, and inadequate government support, India has successfully leveraged technology and strategic investments to enhance its mango export sector.

Conclusion

The decline in mango production and exports in Pakistan is a multifaceted issue requiring urgent attention. Climate change, inadequate government policies, and rising costs are significant challenges that must be addressed to revive Pakistan's mango industry. In contrast, India's success story, driven by strategic investments and technological innovations, offers valuable lessons for improving supply chain efficiency and boosting export competitiveness. Without significant intervention and support, Pakistan's mango sector's future remains uncertain, with far-reaching implications for the economy and livelihoods of thousands of farmers.

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References:

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1. Waheed Ahmed, All Pakistan Fruit and Vegetable Exporters Association

2. Pakistan Bureau of Statistics (PBS), 2023 annual report on external trade statistics

3. Traders' criticisms and allegations regarding the Department of Plant Protection (DPP)

4. Mubashar Durrani, a mango grower from Multan

5. Fayyaz Chaudhry, mango grower from Multan

6. Reliance's entry into agri-business and pilot project success

7. Strategic investments by Reliance Industries

8. Technological innovations by Reliance Industries

9. Rahul, Business Outreach

10. Noman Hossain, Khaama