POTATOES

Introduction

Globally potato is fourth largest food crop after rice, wheat and maize. It is traded under
HS Code # 0701. The major countries are Afghanistan, Russian Federation, U.A.E, Malaysia, Sri
Lanka, Indonesia and Singapore. The geographical distribution of Potato cultivation has been
widely spread from plains of Punjab to slopes of Karakorum. It has also being grown in the
coastal belt of Sindh province. Similarly the seasonal spread of potato crop is broadly
distributed too. Thus all the year fresh potato supply comprehensively meets the nation’s
demands. However during few off season months, potatoes from cold storages replenish the
exhausting fresh supplies. Therefore, Potato is one of the main cash crops for the farmers as well
as among the main exportable horticulture commodities from the country.

Concerned Trade Association

All Pakistan Fruit & Vegetable Exporters, Importers & Merchants Association was
established in 1986.Due to the enormous potential of Pakistan’s horticulture products in the global market
Create an export orientated environment facilitated through procedures and quality standards through
regulations and incentive schemes. Being an Agricultural State Pakistan Produces Best Quality Fruits &
Vegetables. In order to promote export of fresh fruits & vegetables up till now the Association has been
successful in its efforts and still striving hard for further expansion in the volume of exports. The
Association is member of Federation of Pakistan Chamber of Commerce & Industry.

Potato Producing Districts:

Pakistan annually produces approximately 2 million tons of potatoes. The area and
production of potatoes in Pakistan have exhibited an increasing trend especially in Multan and
Sahiwal region. Details are as follows:

Punjab Okara, Sahiwal, Pakpattan, Sialkot, Kasur, Jhang &

Lahore.
KPK Nowshera, Mardan, Swat, Dir & Mansehra
Balochistan Killa Saifullah, Kalat & Pishin.
Sindh Khairpur & Shikarpur.

About 5000 varieties of potato exist worldwide. In Pakistan both white and red skin
varieties are cultivated but red skinned are mostly liked by consumers.

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 RED SKIN POTATOES WHITE SKIN
Desiree Diamant
Ultimus Patrones
Lal-a-Faisal Multa
Raja Symphonia Santana
Asterix Sante
Cardinal Ajax

Potato Production Value Chain

Pakistan’s Exports of Potatoes

US Dollar Thousand

Sr. Importers 2014 2015 2016 2017 2018

1 Afghanistan 35,428 70,501 26,970 52,022 60,618
2 UAE 5,934 13,797 17,807 9,550 16,342
3 Sri Lanka 4,820 14,234 15,002 7,527 16,251
4 Qatar 64 1,620 3,203 2,676 6,729

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 5 Oman 1,339 1,909 3,189 1,823 4,346
6 Malaysia 658 4,012 5,829 3,905 4,331
7 Russian 776 13,031 1,369 810 3,433
8 Iraq - - - 472 2,000
9 Bahrain 417 1,482 2,007 1,018 1,923
10 Kuwait 1,246 1,171 1,341 340 1,645
World 51,211 122,499 78,187 80,972 120,882
(Source: Trade Map)

Top Ten World Importers of Potato (US $ 000)

Imported Imported Imported Imported Imported

Importers value in value in value in value in value in
2014 2015 2016 2017 2018
S# World 4350382 3830468 4266536 4529501 4586781
1 Belgium 345713 287843 463471 505908 545538

2 Netherlands 307806 299492 342619 354126 365298

3 Spain 201908 179667 253731 250015 247306
United
States of
4 America 184773 168182 217656 232289 243601
5 Germany 248070 204208 268448 245637 241439
Russian
6 Federation 382523 256244 107635 220413 217926
7 Italy 207376 167913 205377 191939 187551
8 Iraq 5792 138939 79357 103938 157050
9 Portugal 91820 86010 122081 97157 130207
United
10 Kingdom 136030 128614 122511 120214 110925

Top Ten World Exporters of Potato (US $ 000)

Exported Exported Exported Exported Exported

Exporters value in value in value in value in value in
2014 2015 2016 2017 2018

S# World 4338925 3675763 4021252 4334696 4341199

1 Netherlands 901209 708528 805356 796796 793942

2 France 527297 464232 607314 587527 645164
3 Germany 345470 282478 349234 392969 384549
4 China 271994 227442 226453 280758 261240
5 Canada 200206 180157 226951 237548 252214

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 United
States of
6 America 200088 183506 204430 239857 235790
7 Egypt 326791 232897 162009 272730 206858

Iran, Islamic
8 Republic of 160609 222364 109628 144335 202954
9 Belgium 197634 160858 210198 209898 199266
10 Spain 85753 103062 136229 105543 152414

The above tables show that the latest export figures & export trends of Potatoes and its
products, which has been fluctuating during the previous years. However, the major share of
Potatoes exports is 0.5% in total exports of Pakistan. Also, with an export figure of US $121
million in 2018, Pakistan is also the 12th largest exporter of Potatoes in the world.

Potato Export Supply Chain

Key Issues on Potato production & export

• Sowing of virus contaminated uncertified seed, imbalanced use of NPK fertilizers, low
level use of potassium, occurrence of copious diseases and insect pests are factors
responsible for low yield.
• More than 18 potato diseases have been reported in Pakistan, White fly is the major
vector of potato viral diseases.
• Potato viruses damaging the crop above threshold level include potato virus X, potato
virus Y, potato leaf roll virus and potato mop top virus.
• Seed involves about 35-40% of total cost of production so virus free seed gains attention.
Although, certified seed production in country is limited due to lack of technical,
economical and managerial skills and is unable to meet total seed requirement, yet

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 Punjab Seed Corporation is a milestone from public research sector which started sale of
virus free seed by using modern tissue culture technology.
• Limited quantities of caroda, santee, burna, easterx, desiree, cardinal and diamente
produced by tissue culture are supplied to farmers. Major importers and distributers of
potato seed are PEPSICO, AGRICO and Bari Seeds.
• The decline in export is attributed to stiff competition from China, India and
Bangladesh, which recently emerged as leading exporters of potato, exporters said,
adding they are offering lower rates per ton to attract buyers.
• In India, the government allows 50 per cent subsidy on premium to small and marginal
farmers. Crop insurance is purchased by agricultural producers, including farmers.
India has always been a major player in the field and is expanding both production and
export of potato internationally and regionally. The situation is challenging for Pakistan,
particularly Punjab which produces almost 90 per cent of the crop.
• India is, logically and geographically, our premium export destination for all fruits &
vegetables, which is closed off to the growers & exporters of Pakistan due to geopolitical
reasons.

Constraints of fruits and vegetables

 Small landholdings of more than 80% farmers.

 Quality and availability of inputs (seeds/ nursery/fertilizers/pesticides).
 Contractual marketing, absence of market information system, and lower returns to growers.
 Large price fluctuation (domestic market) and export price gap
 Lack of technical labour.
 Lack of modern packing grading and storage facilities.
 Compliance issues (Quality standards).
 Food safety, Pesticide residues, Traceability).
 Non availability of independent Food Testing Laboratories.
 Poor transportation means and absence of cold chain infrastructure.
 Absence of any standard R&D facility for postharvest and cold chain.
 Lack of integration between research, academia and extension.

Recommendations of fruits and vegetables

 Pakistan Government may encourage private sector to invest in the value addition industries
to meet the local as well international demands.
 Training for farmers to produce quality products.
 TDAP may organize seminars/workshops for awareness of fruits and vegetables growers and
exporters.
 Participation in the international fair of fruits and vegetables in the potential markets.
 Installation of processing units for fruits and vegetables in producing regions.
 Changing industry from production based to quality and export based.
 Intelligent Marketing: Improving quality for compliance, exploring new markets and
developing Market Intelligence System. Today, EureGAP certification is required for fruit
and vegetables export by a considerable number of retailers, especially super markets. It also
offers a great chance for farmer groups to introduce sustainable agricultural practices based
on integrated crop and pest management principles.

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  Establishment of Auto controlled refrigerated storage and preservation for, vegetables &
fruits. Because of technology advancements and logistic strategies, the cold storage of
perishable items has become an important stage in the distribution between
manufacturers/processors and retail locations.
 Value addition has direct correlation with the enhanced export earnings and provides the
surplus needed to re-invest in R&D, brands, market development. By Providing subsidy of
Government for installing processing units for potato/onion products to ensure that an
industry’s range of products can retain competitive edge while still giving adequate returns to
the providers of capital.
 Required Infrastructure development (Physical: Farm to market roads, railway, airways and
shipping, cold chain, packing, storage, reefer containers) and involving private sector
investment in cold chain infrastructure will ensure the increased availability and improved
quality of high value perishable fruits and vegetables for both export and local sale
 The countries across the world are engaging themselves in the different regional and bilateral
trading agreements to get the preferential or free market access. The Government should also
enter into such Preferential Trade Agreement (PTAs) and Free Trade Agreement (FTAs)
along with successful implementation of the agreements.
 What to do next: Conducting of Awareness workshops and preparation of proposals by trade
bodies for the government to support Potato/Onion growers to ensure effective development
of their production, Marketing plans and value addition. By the virtue of these endeavors,
proactive approach by the industry can be ensured to grab enhanced market share in the
international market.

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