ECONOMIC IMPLICATION OF PESTICIDE

RESIDUES IN MANGO'S EXPORT OF PAKISTAN

Presented By
Sadia Sheerazi
MPhil Environmental Economics

PAKISTAN INSTITUTE OF DEVELOPMENT ECONOMICS

 INTRODUCTION
Pakistan is blessed with diverse environment conducive to the production
of nearly thirty types of fruits mainly citrus, mango, apple, guava, banana,
dates, and melons.

 Horticultural sector contributes about 12% to the national agricultural

GDP of Pakistan and holds great potential for increasing export of premium
quality horticultural produce.

Nowadays, application of pesticides is essential in modern agriculture to

enhance the productivity and eliminating pests as well as diseases that spoil
vegetables and fruits.

About 27 % of the total pesticides are used on fruits and vegetable crops.
 …Conti
 Excessive and indiscriminate use of pesticides not only increases the cost
of production but also results in many human health problems and
environmental pollution.

 Pesticides have been associated with a wide spectrum of human health

hazards, ranging from short-term impacts such as headaches and nausea
to chronic impacts like cancer, reproductive harm, and endocrine disruption

 Horticulture crops including fruits and vegetables are commonly traded at

national and international level and Pakistan exports a variety of fruits and
vegetables to many countries.

 The indiscriminate use of these pesticides is going to threaten the exports.

RESEARCH QUESTIONS

What are the pesticide residues level in

exportable mangoes of Pakistan ?

Do WTO/SPS measures (specifically pesticide

residues) restrict mangos exports?
OBJECTIVES OF THE STUDY

To find pesticide residues in mango samples collected from

orchard in Multan and Muzaffargarh.

To find out pesticide residues compliance with Joint FAO/WHO

Codex Alimentarius Commision maximum residues limits
(MRLs) for pesticide residues.

To evaluate the economic impact of sanitary and phytosanitary

(SPS) measures especially (pesticides residues) on the
Pakistan’s mango export.
HYPOTHESES
 The pesticide residues in mango exports exceeds
the MRLs in Pakistan.
 SPS measures (specifically pesticides residues)
affect export of Pakistani mango.
 LITERATURE REVIEW
 Khan et al. (2010) analyzed pesticides percentage in Pakistan.
Anwar et al. (2011) noticed that trade losses were borne by
exporter when importing countries impose stricter regulation.
Drouge et al., 2010 compared the level of pesticides for two
fruits including apples and pears in seven importing, According to
results concerning MRL, it is not the absolute level which imports
but the relative one that is to say the differences in legislations.
Bathan and Lantican (2009) The results showed that the foreign
exchange rate, the domestic production, and the export price have
positive impact on the export value of pineapple while the domestic
price has a negative influence on the value of pineapple export. the
Australian import of filipino pineapple declined to a small extent
because of severe SPS requirements of Australia, however in the
overall export of Philippine pineapple it was insignificant.
 Conti…
The SPS standards rather concern )Deodhar et al. (2008
human health and are more scientific research oriented. But the
over curious attitude in maintaining SPS standards may lead to
distorted trade and less mutual welfare. The policy related to
SPS measures and a balance for an economic welfare of both
.states was measured
Previous studies have only explored the level of pesticide
.residues in fruits and vegetables

This study contributes to the existing literature in terms that it

explores the impact of pesticide residues on the export of
.mangoes in Pakistan
DATA AND METHODOLOGY
Collection of Sample

 Samples of mango collected from the Multan and

Muzaffargarh for the analysis of pesticide residues.
Specific code number allotted to collected sample

 After
collection sample chopped, sub-sampled and
preserved in a freezer till further processing.
INSTRUMENTAL ANALYSIS
 Following instruments used:

Two Perkin Elmer Autosystem Gas Chromatographs equipped

with :
 autosampler,

 Capillary column,

 electron capture detector (ECD-Ni 63)

 Nitrogen Phosphorus Detector (NPD

SECONDARY DATA COLLECTION
Time
 series secondary data from 2000 to 2012 used. Data collected from Pakistan Economic
Survey and Fruits, vegetables and condiments Statistics of Pakistan.

ECONOMETRIC MODEL
LOG
 LINEAR MODEL

In XQt = β0 + β1DCt + β2DPt + β3FERt + β4TQt +β5SPSDt+et

where
XQt = export quantity of mango in year t (tons)
DCt = domestic consumption of mango in year t (tons)
DPt = domestic price of mango in year t (rupees / ton)
FERt = foreign exchange rate in year t (Rs/$)

  
  
  
  
  

  
 …Conti
TQt = total quantity of mango production in year t (tons)

SPSDt = SPS dummy variable where “0” is taken for pre-SPS

(1990-2003) regime and “1” is for post-SPS (2004-2012)
regime; and
e = error term. , β1, β2, β3, β4 and β5 are parameters to be
estimated.
RESULTS
STATUS OF PESTICIDE RESIDUES IN MANGO
Table 1. Status of Pesticide Residues in Mango

Samples Pesticide Pesticide

Samples Samples exceeding Pesticide exceeded
analysed detected exceeded MRLs
contaminated (%) MRLs (%age) MRLs (Name)
(No.) (No.) (No.)

Chlorpyrifos,
9 78% 67% 14 3
Endosulfan, Profenofos

 Primary data analyzed through laboratory experiment found that

about 78% of the samples being analyzed were containing pesticides
residues to varying levels out of which 67% were above Codex
Maximum Residuals Limits (MRLs).
 Three pesticides viz chloropyrifos,endosulfan and profenofos were
exceeding their MRLs
CONTI…

Secondary data results showed both domestic consumption

and domestic price having significantly negative impact on
export quantity of mango by a factor of 0.0017% and
00046% respectively.
Every unit increase in mango production lead to 0.0017%
increase in export quantity of mango.
Whereas every unit increase in foreign exchange rate in
international market ,the export quantity increases to 0.021% in
same direction.
It has also been observed that export quantity of mango is
negatively impacted by SPS measures.
 CONTI……
Regression Results of the Determinants of
Export Value of Mango
Table 2:
Dependent Variable: Ln(EXPQ) Sample: 1991- 2012

Variable Coefficient Std. Error t-Statistic Prob.

C 9.057189 0.475044 19.06602 0.0000
DC -1.70E-05 2.54E-06 -6.690420 0.0000
DPrice -0.000464 0.000121 -3.850095 0.0014
FER 0.021283 0.004970 4.282089 0.0006
TQ 1.70E-05 2.34E-06 7.262854 0.000
SPSD -0.018902 0.459107 -0.041172 0.9677
R-squared 0.974424
F-statistic 121.9173 Adjusted R-squared 0.966431
Prob (F-
statistic) 0.00000     Durbin-Watson stat 1.750132
CONCLUSION
 Pesticidesresidues werefoundinmangoexport samples. It
was observedthat (14) 67% samples wereexceedingthe
Codexmaximum residueslimits(MRL).
 It has beennoticeddomesticpriceanddomestic
consumptionhasnegative impact onexport quantityof
mango.
 The co-efficient ofmangoproductionandFERhaving
positive impact onexport quantityof mango, whereas
export quantityof mangois alsonegativelyinfluencedby
SPSmeasures.
RECOMENDATIONS
 Pakistanshouldimprove foodcheckingonprioritybasis,
especiallyinbundles withexportersandpromote good
agricultural practices (GAP) basedonreduceduseof,
reducedriskfrom andreducedreliance onpesticides.
 Pakistanmust workseriouslytoqualifyfoodsafetyand
qualitycompliance demands.
 Establishingfoodtestingstandards andget certificates from
worldwide agencies namelyEurepGAP andHACCP.
 Anextensive pesticide residues monitoringsystem should
be establishedtoregulate issues ina comprehensive
manner.
Thankyou