Potato Export Enhancement Plan

This plan has been devised keeping in view the suggestions by the Potato Council Members
as identified by MoC and TDAP.

Global Overview for Potato Trade

In 2019, Potatoes were the world's 493rd most traded product, with a total trade of $5.09B.
Between 2018 and 2019 the exports of Potatoes grew by 15.6%, from $4.4B to $5.09B. Trade
in Potatoes represent 0.028% of total world trade.

Exports: In 2019 the top exporters of
Potatoes were Netherlands ($944M),
France ($801M), Germany ($461M),
China ($333M), and Egypt ($327M).
Imports: In 2019 the top importers
of Potatoes were Belgium ($547M),
Germany ($358M), Netherlands
($341M), Spain ($324M), and Italy
($254M).

Tariffs: In 2018 the average tariff for Potatoes was 20.7%, making it the 104th lowest
tariff using the HS4 product classification. The countries with the highest import
tariffs for Potatoes are South Korea (289%), Israel (133%), Thailand (122%), Iceland
(111%), and Norway (90.9%). The countries with the lowest tariffs are Mauritius
(0%), South Africa (0%), United Arab Emirates (0%), Hong Kong (0%), and Kuwait
(0%).

Pakistan Potato Trade Index

Commodity By Countries July-June 2019-20 July-June 2018-19

Vegetables 298554 233910

Potatoes, Fresh Or Chilled 82952.6 116971.3
(VALUE IN 000 $, Source: TDAP)

Current Export Destinations Potential Export Markets

Currently Pakistan is exporting Potato to Potential Export Markets for Potato

Afghanistan, Malaysia, Sri Lanka, include China, EU, Thailand, Indonesia,
GCC & Russia. Vietnam, Myanmar and Philippine.

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Contents
1. Expanding Export Destinations.....................................................................................................3
2. Improved Seed Varieties................................................................................................................3
3. Introducing latest practices and technologies.................................................................................4
4. Infrastructure Related Aspects.......................................................................................................4
5. Reduction in Exports/Shipping Related costs................................................................................5
6. Promoting Quality Certification....................................................................................................6
7. Matters related to Department of Plant Protection (DPP)..............................................................6
8. Shipping Related Aspects..............................................................................................................6
9. Value addition and processing.......................................................................................................6
10. Role of TDAP (As suggested by Potato Council Members)......................................................7
11. Preparation of Database on potato exports.................................................................................7
12. Training/Workshops/Webinars..................................................................................................7

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 Potato Export Enhancement Strategies

1. Five (05) Years’ Export Targets

1. Year 2019-20: The export target attained was 36480 metric tons (taken as benchmark)

2. Year 2020-21: Anticipated growth in export volume would be 10 – 15%

3. Year 2021- 24: Anticipated growth in export volume would be 12-18%

The anticipated growth in export volume YOY would depend on the following factors:

 Climatic changes,
 Production,
 Natural calamities like rain, storms, floods etc.
 Govt. Policy on export,
 Other regulatory restrictions,
 Most importantly it would largely depend on the local price of the Potato. If it turns
out to be higher, we may not be able to compete in International market and hence
anticipated export volume may not be attainted.

2. Expanding Export Destinations

 Potato seeds are being imported from Holland of worth $ 4.6 Million annually.
Whereas the potato crop grown is not being imported by European Union. The DPP
should take up this issue with authorities in EU (SANCO) to allow potato import
which ultimately opens gate for EU’s market.

 Indonesia, Philippines & Thailand are buyer of industrial/sugar free potato (mostly
used for chips manufacturing) variety named “Lady Rosetta”. This variety is already
being grown in Pakistan in sufficient volume increasing every year. The DPP should
initiate with these countries to start import of this variety from Pakistan.

 Our embassy at Jakarta and DPP should play effective role in acquiring and
disseminating the information for exporters to make them able to make necessary
preparation prior to commencement of season to resolve the quarantine issues. It will
help to facilitate export of potato and onion commodity.
 Bilateral Trade with Afghanistan: Need for policy to avoid sudden closure of
Torkham and Chaman borders for perishable goods. Prior intimation of 4 days be
given to the exporters if the border is to be closed for any reason. Preferably
perishable goods should be allowed to transit through borders in all circumstances,

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 round the clock. These highly perishable goods should be given priority in clearing
operation.
 China is the biggest potential market for export of Pakistani potato. There is potential
of USD 1 Billion export of potato to China if we can only export 3% of Chinese
annual production of 100 million tons. (3M tons x USD 380 per ton = 1.14 billion
USD). Government of Pakistan should sort out SPS issues with Government of China.
Tarrif barriers for export of Pakistani potato to China should be reduced.

3. Improved Seed Varieties

Quality planting material is one of the most important ingredients in successful potato
cultivation. Shortage of good quality seed is recognized as the most important factor
inhibiting potato production throughout the world. The availability of quality planting
material of improved potato varieties in adequate quantities, therefore, is the major issue that
needs to be attended by respective national agricultural research systems.

At present Pakistani potato growers rarely use any locally prepared potato seed variety and
most of the need for seed is satisfied thorough imports from Netherlands. There is need for
local research institutes to indulge efforts for production of disease free potato and climate
change-related latest varieties seed indigenously that could produce high yield potato
varieties.

(For Information: The true potato seed (TPS) technology developed and adopted in India has
a great potential in this region. The cost of TPS is negligible when compared to seed tubers.
Moreover, it can save the entire transportation cost of seed tubers from long distance. The
TPS technology is becoming popular in Bangladesh, India, Indonesia, Nepal, the Philippines,
Sri Lanka, and Viet Nam.)

4. Introducing latest practices and technologies

Drip Irrigation: The potato crop requires 300 to 500 mm of water per growing season. With
increasing demands for food and depleting ground water levels, water scarcity is going to be
a serious problem in the entire region. Also, with climate change resulting from global
warming, the precipitation has become highly variable often leading to droughts at critical
stages of the crop cultivation. Construction of minor irrigation structures for rainwater
harvesting and use of drip irrigation should be encouraged.

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Pest free planting material including nurseries, Climate smart innovations (recycling of
farm based resources), Model farms (5 acres each) at district level should be established in
Punjab are among other suggestions for enhancing potato sector.

5. Infrastructure Related Aspects

Cold Storage Facilities at Ports

Special holding areas with cold storages should necessarily be set up to take care of fresh
produce in-the-waiting for Customs/ANF inspection.

Support for Installation of Solar Tube Wells

Various areas of Pakistan are suffering electricity transmission issues. In such areas solar tube
wells can be installed through offering matching grant by the government.

Scanners at Sea Ports to be activated

Funds allocation required to upgrade and effectively use the scanners to scan perishable cargo
and minimize in-ordinate delay and damage in examination due to manual examination at the
ports.

Lease of Land to Potato Exporters

A lease of 99 years at virtually no cost was adapted from Turkish Authorities - TIGEM (The
Turkish General Directorate of Agricultural Enterprises) in 2008. The exporters could be
given land for modern high density farming of potatoes.

GoP shall develop comprehensive logistic arrangements including cold supply chain support
(reefer trucks, CA and cold storage facilities) to enhance export to central Asia through
CPEC.

Ministry of Communication should take lead to facilitate the trucking sector for potato export
to China via Khunjerab Pass, EU via Turkey & Russia via Iran and Azerbaijan.

6. Reduction in Exports/Shipping Related costs

High Exchange rate being charged by Shipping lines
Shipping lines are charging excessive money from exporters by Rs. 2 to 4 extra on freight.
Single Exchange rate determined by SBP should be imposed for all shipping line.

Valuation Issue with Russia

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The valuation of our potato at Russian custom is assessed at higher than actual value for
which TDAP should liaise with MTI at Moscow.

Risk Coverage Policy 

Indian Model- “Insurance export Risk Policy” could be adopted. It will enable exporters:

 To fully concentrate to their primary job of enhancing export;

 Induced to stay in horticultural exports business.

To take risks in enhancing exports having strong feeling of Govt. of Pakistan’s commitment
for underwriting losses caused by unavoidable circumstances like rejection of consignments
at destination, natural hazards etc. 

Exorbitant charges being charged by governmental bodies (PCSIR) for testing services to the
sector, charges policy requires revision e.g. for Indonesia, exporters are paying Rs. 25,000 to
40,000 per sample as testing charges.

7. Promoting Quality Certification

Government should provide subsidies for attaining quality certificates i.e. Global GAP, ISO
22000, HACCP, BRC, ISO14000. Currently one such scheme is in progress under Ministry
of Science and Technology, GoP. This scheme should remain effective for atleast 3 more
years to support the industry.

8. Matters related to Department of Plant Protection (DPP)

 Department of Plant Protection (DPP) should be strengthened through man and
material and capacity building of staff to control and support export commodities.
 DPP should allow potatoes loading to Russia from Karachi.  
 The fee for issuance of Phyto certificate should be reduced from Rs.2,500 to Rs.300.
 Strong actions are required from DPP to overcome the identified quarantine issues
with other countries. Poor response of DPP is observed till date which needs to be
improved.

9. Shipping Related Aspects

 Formation of rules of business for shipping lines at the level of Ministry of Maritime
Affairs is required to avoid hidden charges e.g. rules for trans-shipment charges,
various categories of charges, amendment of B/L after sailing.

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  Shipping lines are charging excessive money from exporters by Rs. 2 to 4 extra on
freight. Single Exchange rate determined by SBP should be imposed for all shipping
line.

10. Value addition and processing

Potato processing is a fast growing agricultural subsector worldwide. However, potato
processing in Pakistan is far behind that in developed countries. Potato crop is produced in
spring and summer seasons at higher altitudes in addition to the main winter season. Thus,
the supply chain from different areas could be integrated through appropriate interventions to
ensure that the potato processing industries run on profitable lines throughout the year.
Public-private partnerships should be encouraged for research applications and investment in
marketing infrastructure. Processing unit facility for potatoes processing on public-private
partnership (PPP) is required at Okara, Depalpur, Kasur and Karachi.

11. Role of TDAP (As suggested by Potato Council Members)

TDAP must conduct:

 Delegations from Pakistan to promote Pakistani Potato to highlighted markets of CIS

Countries, Ukraine & Russia.

 China intends to export its potato seed to Pakistan. The country can import Chinese
seed with the preset condition that China will import our potatoes.

 A study visit by progressive farmers of potato, exporters, academia, research,

regulator to Netherland through TDAP and commercial attaché will help to learn a
novel experience to improve potato sector in Pakistan.

12. Preparation of Database on potato exports

The export and import of potatoes mainly takes place within European countries and five
other countries, namely Canada, Cyprus, Egypt, Turkey and the United States. The trade
among these countries account for 80 percent of the global potato trade. Asia’s share in
export and import of potatoes is only 9.8 percent and 11.6 percent, respectively. The
countries of Asia and the Pacific region specifically Pakistan can supply fresh potatoes year-
round because potatoes are grown throughout the year in one or the other part of the country,
unlike in European countries where potatoes are grown only during the summer months.

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 A comprehensive database on potato exports, price grade standards, phytosanitary
standards, processing standards, consumer preferences, seed standards, etc. needs to be
prepared for all importing countries.

13. Training/Workshops/Webinars
Different trainings for growers and exporters should be conducted in order to equip them with
latest technology being used and information related to production & exports of potato.