Potato traders eye drought-hit Russia

Russian market likely to import four million tons of potatoes from Pakistan,

LAHORE: Potato traders have their eyes on the Russian market as it is likely to import four million tons of potatoes, The Express Tribune has learnt.

A study conducted by the Pakistan Horticulture Development and Export Company (PHDEC) showed that Russia may import potatoes before the next harvesting season in August, due to a 30 per cent decline in production as a result of a summer drought.

Owing to the shortage as well as the fact that potatoes remain a staple food for majority of the population, the Russian government has removed import duties on the vegetable.

Pakistan’s total potato production is estimated to be 2.8 million tons per annum, of which 1.5 million tons are consumed locally, allowing exports of up to 1.3 million tons. Traders are of the view that the country can generate revenues of Rs20 billion by exporting potatoes to Russia.

The PHDEC study stated that in 2010, drought affected cultivation in the Volga Valley Federal District – the producer of over 60 per cent of Russian potatoes – causing damage to yield and quality.

AQ Khan Durrani, a fruit and vegetable exporter, believes Russia has become an attractive place for Pakistani potato exporters and they could generate huge revenues. He stressed that exporters need to ensure supply of good quality potatoes in order to capture Russian markets as its government gives high priority to quality.

“We have our own steam processing facility that will ensure quality material and we are prepared to start potato export in the second week of February,” he added. Ministry of commerce spokesman Najeeb Khawar Awan has assured the people that the ministry will allow potato exports only in case of a surplus in the country, in order to avoid shortage in the local market.

Published in The Express Tribune, January 26^th, 2011.