Estimation of Export Supply Function for Citrus Fruit in Pakistan

Nature has blessed Pakistan with an ideal climate for growing a wide range of delicious fruits. Thus a very wide range of tropical, sub-tropical and temperate fruits are grown in the country. Over the years, Pakistani experts have developed unique strains of exotic fruit varieties. Pakistan is producing a large variety of fruits on an area of 734.6 thousand hectares with a total production of 5712.4 thousand tons. Out of this 354.4 thousand tons fruit is exported from the country [Pakistan (2004)]. Horticulture is an important sub-sector of agriculture and plays a vital role not only in rejuvenation of rural economy but also in improving human nutrition which is often deficient in ingredients such as vitamins and minerals. Citrus and mango are the main fruit crops which contribute substantially to the national income. Citrus is a prized fruit of Pakistan and holds number one position among all fruits both in area and production in the country. No doubt, it was originated in tropical areas around Southern Himalayas, South Eastern Asia and Indonesian Archipelago but it was spread throughout the world on both sides of equator making a citrus belt of 35 degree latitude in South Australia in Southern hemisphere. The quality of the citrus fruit varies in different regions. The areas with semi-tropical climate near the southern and northern most latitude limits are the best for commercial production [Mahmood and Akhtar (1996)]. Today, Pakistan stands among the top ten citrus growing countries in the world. Kinnow is grown primarily in the plains of Punjab province of Pakistan. It has good demand abroad, as foreign fruit vendors generally prefer Kinnow from Pakistan. Its production has increase overtime. The production of citrus was 671.1 thousand tones in 1975 and has increased to 1760.3 thousand tones in 2004 [Pakistan (2004)]. When viewed against experience of many successful developing countries, Pakistan’s export performance has been lackluster [Khan (1998)]. Total exports grew at an average annual rate of 6 percent during 1990s. Exports however stagnated at