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Pakistani potato export falls by 40 percent

By Tanveer Sher

KARACHI: Pakistani potato export registered a decline of 40 percent during the current year up till now in the wake of lack of competitive edge as compared to the Indian commodity.

During January, February and March the export of potato is in full swing as compared to the rest of the months of the year.

In the previous year 2009 Pakistan had exported around 250,000 metric tonnes of the commodity while this year till the end of March it is expected to be in the range of 150,000 metric tonnes.

The decline may deprive the country earning of invaluable foreign currency as currently Indian potato on account of its low price is in high demand in the region.

Despite bumper crop of potato during the current season, exporters have failed to derive any mileage mainly on account of lower price of Indian potato attracting foreign buyers.

Indian potato is currently available to foreign importers at $180 to $200 per metric tonne, which is far less as compared to higher rates of Pakistani yield of $220 to $230 per metric tonne in the international market.

A senior office bearer of Vegetable and Fruit Wholesalers Welfare Association, Karachi Mohammad Waqar informed Daily Times that during January to March of previous year, Pakistan was exporting around 300- 400 containers per week to Sri Lanka, Malaysia, Dubai and Iran. “Ironically during the last two-and-half-month of the current year, demand of Pakistani vegetable has sharply declined to the level of 50 to 60 containers per week as higher prices of Pakistani commodity in the international market have discouraged foreign buyers to place their orders forcing them to make purchases from India, which is available relatively at lower rates,” he added.

A leading vegetable and fruit exporter and grower Haji Shahjahan corroborated about the decline in the demand of Pakistani product during the last few months claiming during the last two months, export of the local yield has fallen to less than 70 percent indicating poor response by the foreign buyers which is hurting country’s export. He blamed increased rates of Pakistani potato on higher cost of production, which influenced the price factor.

Citing different factors that pushed rates of potato up, he said they include record fertilizer rates, increasing seed cost, higher diesel price in Pakistan and costly rates of tractor, which have pushed the price of potato sharply up.

Pakistani farmers and growers are at a disadvantage as compared to their Indian counterparts and they hardly stand a chance of competing, which is adversely affecting their earnings in terms of higher rates of their products.

Unless the government does not step in and extend subsidy to local farmers, the export decline of potato would continue unabatedly which would be a national loss.

In response to a question, he said that wholesale rates of fine quality of the commodity stand in the range of Rs 12 to Rs 13 per kilogramme while in retail outlets it is available at Rs 15 to Rs 16 per kg.

Indian potato is available at wholesale level at around Rs 4 per kg, which is far lower as compared to the Pakistani commodity.

Indian potato is currently available to foreign importers at $180 to $200 per metric tonne, which is far less as compared to higher rates of Pakistani yield of $220 to $230 per metric tonne in the international market.

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