Potato exports to Pak surge in FY15

Pakistan had a poor crop, which led to the price of potatoes to hover around Rs 50-60 per kg

Export of potato to Pakistan through the Attari land route in Amritsar(Punjab) witnessed a quantum jump in the current financial year following Pakistan government’s move to import around 2 lakh tonnes of potatoes from India to stabilise prices in the domestic market.

According to Central Warehousing Corporation (CWC) data, around 1,468 trucks, each laden with 20-25  tonnes of  potatoes, crossed the border in the past two months.  During the previous financial year, 207 trucks laden with the crop crossed into that country.

Traders said potato price in Pakistan is around Rs 50-60 a kg, whereas the retail price in Amritsar is Rs 20-25 a kg.

“Pakistan had a poor crop in the last Rabi season due to adverse weather conditions and crop diseases. Since production was hit, supply suffered. So, the demand from India rose,” said Sachid Madan, director, Technico Agrisciences. The firm produces high yielding, early generation seed potatoes for India and neighbouring export markets.

An official of CWC said exports picked up in April. During January-March, only 52 trucks of potato were exported. He said around 20-25 trucks cross the border every day.

Speaking to Business Standard, Rajdeep Singh Uppal, an exporter based in Amritsar, said, “The Pakistan government’s decision to withdraw all levies and duties on potato imports from India in order to bring down prices in the domestic market is also one of the reasons behind the jump in shipment. We would be also exporting around 3,000 tonnes of potatoes.”

According to him, the Pakistan government’s decision to withdraw regulatory duty of 25 per cent, 17 per cent sales tax and five per cent withholding tax on potato imports between May 5 and July 31, making imports viable from India.

In India, potato prices have gone up by 28-30 per cent in the wholesale market, compared to last year. There has been intermittent rain in major producing areas like Uttar Pradesh, Punjab, Haryana, Bihar, etc, in November-February affecting the crop. The adverse weather conditions in different areas have led to shortfall in production. According to estimates, there has been an overall production loss of 25-30 per cent.

According to government data, India produced 453 lakh tonnes of potato from 19.92 lakh hectares in 2012-13. Of the total produce, farmers keep 10 per cent of potato for seeds and 15 per cent is post-harvest loss.