AS potato harvesting and exports gain momentum, farmers from central Punjab’s potato belt expect 20pc additional yield and better exports this year.

Officials have set a target of 3.6m tonnes from just over 400,000 acres sown this season, while farmers think that the production can go up to 4.3m tonnes.

In view of the expected output, growers worry that the current lower price level may drop if the exports do not gain momentum. At present, the price for better quality potato is around Rs1,400/120kg.

The formal export process is also gaining momentum because the Russian ban on potato imports from Egypt and Bangladesh is still in place. A new market, Yemen, has opened up this year

If harvesting, loading, unloading and transportation cost is deducted, the average per kilogramme price for farmers comes down to around Rs8. This price trend remains unfavourable for farmers when compared with the officially calculated cost of production of Rs11/kg.

Farmers claim their cost of production at Rs17/kg. The price variations remain a worry for them though export prospects and potential are promising. These export have sustained the price level at almost double the previous year’s rate, even during pre-mature harvesting in November. The current price of Rs1,400/120kg bag is 100pc more — up by Rs700/bag of last year.

The porous borders with both, Iran and Afghanistan, also helped informal potato trade and Afghanistan — conduit to the Central Asian states — played an even bigger role. According to farmers, both these countries have bought substantial quantity of the commodity in the last few months.

The formal export process is also gaining momentum because the Russians slapped a ban on potato imports from Egypt and Bangladesh last year which is still in place. And a new market, Yemen, has opened up this year. A Yemeni team visited Okara area a few months ago to inspect the crop and export process and cleared both. The export to Yemen has started. The traditional markets like the Gulf and the Far East region also remain in place.

Even bigger help in the potato exports has come from some domestic investors. Those involved in kinnow exports, with experience of the supply chain, post-harvest treatments and export process, have entered the potato processing over the last two years. With all their experience and wherewithal, they have set-up their processing units and export offices in Okara area. The number of the processing units have swelled to 32 — most of them in the last one year which will spur exports now.

The process was also facilitated when the Potato Growers Society started hosting officials of the federal Plant Protection Department for three months at Okara.

These officials now issue phyto-sanitary certifications, necessary for export, at Okara — skipping the lengthy and costly processes of inspections, unloading and loading of export consignments at the Karachi port.

Practically, it means that potato fields are now directly linked to the export markets worldwide. With this facility, many new businessmen, and even farmers, have joined and widened the export base in very areas of sowing.

Another boost for the crop demand is coming from increasing domestic processing industry. Three units of potato-chips and other products are already working now. Three more are planned for next year and one of the major plants plan 30pc expansion for this year.

With exports gaining strength and domestic value-addition expanding, the only concern for farmers is domestic pricing mechanism. Whenever prices start going up, the government either bans exports, or allows duty-free imports from neighbouring country or unleashes district administration at the retail sector to keep prices down.

Published in Dawn, Business & Finance weekly, February 6th, 2017