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Potato exporters lose out to cheap China produce

Sohel Parvez
Cheaper supplies from China have made Bangladesh's potato less attractive to international buyers, exporters said.
"We cannot sustain competition with Chinese exporters because of escalating prices in the local market," said Shaikh Abdul Quader, president of Bangladesh Potato Exporters Association, a newly formed trade lobby group.
Presently, Chinese exporters offer potato at S230-S250 per tonne, which is $50-60 lower than what Bangladesh's exporters can offer at most.
"There was a production glut in China which allowed the country's exporters to offer the extremely low prices," he said.
Furthermore, Chinese exporters sell fresh harvested potato, making them more preferable to Bangladesh's stored potato.
Local prices of potato have gone up to such levels that exports do not provide any substantial margin, said Quader, also the owner of
Agriconcern, a leading exporter.
Even though productions have been exceeding demand in the past few seasons, owing to rationing of supply by traders, stockists and cold storage operators, potato prices have shot up in the last several months.
Price quoted by the Trading Corporation of Bangladesh yesterday for
per kilogram of potato was Tk 24-26, which is around 72 percent higher than previous year'sTk 13-16.
"We have exported a good quantity of potato last year thanks to the low prices. But this year, we would be incurring losses if we export," he said. According to data from the Department of Agricultural Extension (DAE), which issues the plant health certificates needed to export farm produce, fresh potato shipments recorded in 2011-12 were 18,862 tonnes, a 52 percent drop from 39,539 tonnes in 2010-11.
Customs data also showed that shipments of potato and potato products and earnings from exports nearly halved in the July-May period of 2011-12 from the same period of the previous fiscal year.
Moreover, incidences of potatoes rotting in transit to places such as Sri Lanka and Malaysia badly dented the image of Bangladesh's potato to international buyers, said Jasim Uddin, chairman of Bangladesh Cold Storage Association.
Currently, Bangladesh exports potato to seven countries, including Malaysia, Singapore and Sri Lanka, while potato exporters get cash incentives from the