Export Potential of Potato to Nepal from India

Chapter: 1

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 Export Potential of Potato to Nepal from India
1. Conceptual Frame Work

1.1- INTRODUCTION

Potato

Scientific classification
Kingdom: Planate
(unranked): Angiosperms
(unranked): Edicts
(unranked): Asteroids
Order: Sultanates
Family: Solanaceae
Genus: Solanum
Species: S. tuberosum

Binomial name

Solanum tuberosum

1.1 HISTORY AND ORIGIN OF POTATO

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 Export Potential of Potato to Nepal from India
The potato was first cultivated in South America between three and seven thousands year ago, through
scientist believe they may have grown wild in the region as long as 13000 yrs ago. The genetic pattern
of potato distribution indicates that the potato probably originated in the mountainous west –central
region of the continent. According to Dr. HECTOR FLORES,” THE MOST PROBABLY place of
origin of potatoes is located between the south of Peru and north east of Bolivia. The archaeological
remains date from 400bc and have been found of the shores of Lake Titicaca. There are many
expression of the extended use of the potato in the pre-Inca cultures from Peruvian Andes.

The Spanish conquistadors first encountered the potato when they arrived in Peru 1532 in search of
gold, and noted Inca minors eating potato. At the time the Spaniards failed to realize that the potato
represented a far more important treasure than either silver or gold, but they did gradually begin to use
potatoes as basic ration abroad their ships. After ache arrival of the potato in Spain in 1570, a few
Spanish farmers began to cultivate them on a small scale, mostly as food for live stock.

From Spain potatoes slowly spread to Italy and other European countries during the late 1500s. By 1600
the potato had entered Spain, Italy, Austria, Belgium, Holland, France, Switzerland, England, Germany,
Portugal and Ireland. But it did not receive a warm welcome.

Throughout Europe, potatoes were regarded with suspicion, distaste and fear. Generally considered to
be unfit for human consumtion, they were used only as animal fodder and sustenance for the starving. In
northern Europe, potatoes were primarily grown in botanical gardens as an exotic novelty. Even
peasants refused eat from a plant that produced ugly, misshapen tuber and that had come from a heathen
civilization. Some felt that the potato plants resemblance to plants in the nightshade family hinted that it
was the creation of withes of devils.

In meat-loving eland, farmers and urban workers regarded potato with extreme distaste. In 1662 the
royal society recommended the cultivation of the tuber to the English government and the nation but this
recommendation had little impact. Potatoes didn’t become a staple until during the food shortages
associated with the revolutionary wars, the English government began to officially encourage potato
cultivation in 1795, the board of agriculture issued a pamphlet entitled “hints respecting the culture and
use the potatoes”, this was followed shortly by pro-potato editorials and potato recopies in THE TIMES.

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 Export Potential of Potato to Nepal from India
POTATO POPULATION BOOM

When the European expanded to include potatoes, not only were farmers able to produce much more
food they also gained protection against the catastrophe of a grain crop failure and periodic population
checks caused by famine.
Highly nutritious potatoes also helped mitigate the effects of such diseases as survey
tuberculosis dysentery and misdeals the higher birthrates and lower mortality rates potatoes encouraged
lead to a tremendous population explosion wherever the potato traveled ,particularly in Europe, the us
and the British empire.
This view began to change gradually in the late 1700s. at the same time is the populations of
London, Liverpool, in Manchester were rapidly increaser the potato was enjoying unprecedented
popularity among farmers and urban workers .the industrial revolution was drawing an ever increasing
percentage of the populace into crowded cities where only the richest could effort homes with ovens or
coal storage rooms and people were working 12-16 hr a day which left them with little time or energy to
prepare food. High yielding easily prepared potato crops were the obvious solution to England’s food
problem. Not insignificantly the English were also rapidly acquiring to taste for potatoes as is evidenced
by the tuber’s increasing popularity in recipe books form the time.

Constituents of the sweet potato: values per 100g (3.5 oz.) edible portion
Units Raw sweet Cooked, baked Cooked,
potato in skin boiled without
skin
Water g 72.84 72.84 72.84
Energy kcal 105 103 105
kHz 439 431 439
Protein g 1.65 1.72 1.65
Total lipid (fat) g 0.30 0.11 0.30
Carbohydrate by g 24.28 24.27 24.28
difference
Fiber, total dietary g 3.0 3.0 1.8
Ash g 0.95 1.06 0.95
Calcium Ca mg 22 28 21
Iron Fe mg 0.59 0.45 0.56
Magnesium Mg mg 10 20 10
Phosphorous P mg 28 55 27
Potassium K mg 204 348 184

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 Export Potential of Potato to Nepal from India
Constituents of the sweet potato: values per 100g (3.5 oz.) edible portion
Units Raw sweet Cooked, baked Cooked,
potato in skin boiled without
skin
Sodium Na mg 13 10 13
Zinc Zn mg 0.28 0.29 0.27
Copper Cu mg 0.169 0.208 0.161
Manganese Man mg 0.355 0.560 0.337
Selenium Se mcg 0.6 0.7 0.7
Vitamin C mg 22.7 24.6 17.1
Thiamin B1 mg 0.066 0.073 0.053
Riboflavin B2 mg 0.147 0.127 0.14
Niacin B3 mg 0.674 0.604 0.64
Antithetic acid B5 mg 0.591 0.646 0.532
Vitamin B6 mg 0.257 0.241 0.244
Foliate, total mcg 14 23 11
Vitamin B12 mcg 0 0 0
Vitamin A, IU IU 20,063 21,822 17,054
Vitamin A, RE mcg- 2,006 2,182 1,705
RE
Vitamin E mg- 0.280 0.280 0.280
ATE
SOURCE: U.S. Department of Agriculture. Agriculture Research

1.2 Rationale:
India is one of the great producers of Potato in the world. It is exporting Potato and its processed
products in different part of the world. In world market Indian Potato achieved a distinct place due to its
standard quality and taste. India produces more than 15 varieties of potato, which has different kind of
usages. SAARC nations are one of the major market of Potato among the Middle East, Singapore, Saudi
Arab are the countries which has paramount importance.
Both the above facts made the study of export potential of potato to SAARC nations and Nepal very
interesting.

1.3 Objective:

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 Export Potential of Potato to Nepal from India
The basic object to carry out this research to collect, classify and analyze the data to find out the
potentiality of Potato that can be exported to Nepal from India, mainly focus on in India from where the
Potato is produced in move quantity that can be exported to Nepal from India.
In India, Uttar Pradesh is the largest producer of Potato. I belong to U.P. in Farrukhabad. Farrukhabad
is the major producer district of Potato. So, this project will be beneficial in my future if I will export the
Potato in future.

1.4 Methodology:
The research will be entirely based on secondary data. Various websites available at internet will be the
major source of the data. Except, that other sources like books, magazines, articles and agriculture
agencies etc. But I have personally involved myself for understanding the aspect growing of Potato
because I belong to a rural area, where Potato is the main crop. So I know the cultivation process of
Potato.
I have drawn out my conclusion on the basis of secondary data and my primary understanding of the
product. I have included every thing regarding Potato exports. So as any one can start its exports of
potato and in that after in export, the success and earning is a lot.

1.5 Limitations
1. Use of secondary data, due to various constraints like distance, unavailability of resources etc. may raise
a question of authenticity.
2. The opinion and the suggestions thus given in this research in the personal opinion and may be biased.
3. Lack of statistical data in relation with services.

1.6 Literature Review:

KATHMANDU, APRIL 13: Per capita availability of potatoes in Nepal has crossed the world average due to a
sharp rise in production over the past one and a half decades, officials said.
The Ministry of Agriculture and Co-operatives (MoAC) stated that the production of potatoes went up to 2.05
million tons in 2007/08 from 0.74 million tons in 1993/94.
Likewise, potato crop acreage and productivity also rose by 75 percent and 57 percent over the period.
Last year, per capita availability of potatoes was recorded at 147 kg, 73 kg and 65 kg in the mountain, hill and
tarai districts respectively.
According to MoAC, the per capita availability of potatoes was 61kg, which is almost double the world average.
In the same year, per capita potato availability was 17 kg, 24 kg and 11 kg in India, Bangladesh and Pakistan
respectively.
Dr Hari Dahal, spokesperson of MoAC, said Jhapa, Bara, Kavre, Saptari, Morang, Makawanpur, Rupandehi,
Panchthar, Ilam and Sunsari are the 10 leading potato producing districts, accounting for more than 40 percent of

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 Export Potential of Potato to Nepal from India
the total output across the country.
According to records at Kalimati Fruits and Vegetables Development Board, potatoes account for 21 percent of
total vegetable arrivals at the Kalimati vegetable wholesale market.
Increasing production of potatoes in the country is gradually replacing the imports from India, Bhutan and
China.
“About 15 percent of the total consumption of potatoes is met by imports from those three countries while Nepal
exports 5 to 7 percent of the total domestic production. This shows that we are able to meet about 90 percent of
our total demand for potatoes,” said Dahal.
To boost the production of potatoes across the world, the United Nations had marked 2008 as International Year
of Potatoes.
Despite the fact that potato is a key vegetable item, its production has not soared as much as expected, thanks to
lack of access to improved seed by farmers and shortage of cold storage.

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 Export Potential of Potato to Nepal from India

Chapter: 2

2. Potato, the king of vegetable

2.1- Total Production in India
AREA, PRODUCTION AND YIELD IN INDIA

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Year Area ('000 ha) Production ('000t) Yield (q/ha)

1996-97 1069 17401 162.7

1997-98 1136 19237 169.3

1998-99 1248.8 24215.9 193.9

1999-01 1205.9 17648.1 146.4

1901-02 1320.5 23610.7 178.8

1902-03 1340.0 24713.2 184.4

2003-04 1221.9 22488.4 184.0

2004-05 1207.9 23963.8 198.4

2005-06 1337.2 23181.4 173.4

2006-07 1270.3 23123.5 182

2007-08 1318.5 23631.3 179.2

ACGR 3.34 5.67 2.26

(%)

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 Export Potential of Potato to Nepal from India

Source: DGCI&S, Ministry of Commerce, Kolkata

2.2 Major Potato Producer States of India:

State wise area production and yield of potato in 2007-08

Area Prod Yield

States
(‘000 ha) (‘000 t) (q/ha)
Uttar Pradesh 469.0 10248.0 10248.0
West Bengal 407.9 5052.0 5052.0
Punjab 75.0 1223.0 1223.0
Gujarat 44.0 1210.0 1210.0
Bihar 151.4 1178.1 1178.1
Madhya Pradesh 46.6 683.3 683.3
Karnataka 63.0 546.0 546.0

TOP 10 POTATO PRODUCING INDIAN STATES DURING 2007-08

Sr. No. States Prod. (‘000 t)

1. Uttar Pradesh 10248.0
2. West Bengal 5052.0
3. Punjab 1223.0
4. Gujarat 1210.0
5. Bihar 1178.1
6. Madhya Pradesh 683.3
7. Karnataka 546.0
8. Assam 505.0
9. Haryana 341.6
10. Meghalaya 181.0

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 Export Potential of Potato to Nepal from India
Source: CPRI, Shimla (2007-08)

2.3 VARIETIES AVAILABLE IN INDIA

List of Potato varieties released by CPRI and AICPIP

Year of Variety Salient features and Adaptability

Release
1958 Kufri Kisan Late-maturing. North Indian plains
1958 Kufri Kuber Medium-maturing. Bihar and Maharashtra
1958 Kufri Kumar Late-maturing and moderately resistant to late blight.
North Indian hills
1958 Kufri Kundan Medium-maturing, moderately resistant to late blight
and good keeping quality. Himachal Pradesh and
hills of Uttar Pradesh
1958 Kufri Red Medium-maturing and good keeping quality. Plains
of Bihar and West Bengal
1958 Kufri Safed Late-maturing and good keeping quality. North
Indian Plains
1963 Kufri Neela Late-maturing and moderately resistant to late blight.
Nilgiri Hills
1967 Kufri Sindhuri Late-maturing, essentially short day adapted variety
with red tuber. Heavy yielder even on low inputs.
North Indian plains
1968 Kufri Alankar Medium-maturing. North Indian plains
1968 Kufri Chamatkar Late-maturing and resistant to early blight
1968 Kufri Early-maturing and good for processing. North
Chandramukhi Indian plains and plateau region of peninsular India
1968 Kufri Jeevan Late-maturing. Himachal Pradesh
1968 Kufri Jyoti Medium-maturing, good for processing, field
resistant to late and early blights and immune to
wart, and tolerant to viruses. Wide adaptability
1968 Kufri Khasigaro Late maturing and resistant to both late and early
blight. Hills of Meghalaya
1968 Kufri Naveen Late maturing and resistant to late blight and immune
to wart. Northern hills of West Bengal and

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Meghalaya
1968 Kufri Neelamani Late maturing and resistant to late blight. Nilgiri hills
1968 Kufri Sheetman Medium to late-maturing and resistant to frost. North
Indian plains and tarai area of Uttar Pradesh
1971 Kufri Muthu Medium-maturing and resistant to late blight. Nilgiri
hills
1972 Kufri Lauvkar Early-maturing and rapid bulking under warmer
conditions, suitable for processing. Plateau region of
peninsular India
1973 Kufri Dewa Medium maturing, good keeping quality and resistant
to frost. Tarai area of western Uttar Pradesh
1979 Kufri Badshah Medium- maturing, resistant to both late and early
blights and PVX. North Indian plains and plateau
region of peninsular India
1980 Kufri Bahar Medium-maturing and heavy yielder. North Indian
plains
1982 Kufri Lalilma Medium-maturing with red tuber and resistant to
virus 'X' North Indian plains
1983 Kufri Sherpa Medium-maturing, resistant to late blight and
immune to wart.Hills of west Bengal
1985 Kufri Swarna Medium-maturing, resistant to late blight and cyst
nematode. Nilgiri hills
1989 Kufri Megha Medium-maturing, late blight resistant. Hills of
Meghalaya
1996 Kufri Ashoka Short duration (75days). Plains of central and eastern
Uttar Pradesh, Bihar and West Bengal
1996 Kufri Jawahar Medium-maturing, resistant to late blight and ideal
for intercropping. Punjab, Haryana and the plateau
regions of Madhya Pradesh, Gujarat and Karnataka
1996 Kufri Sutlej Medium-maturing and resistant to late blight.
Western and central Indo-Gangetic plains
1997 Kufri Pukhraj Medium-maturing and resistant to late blight.
Northern plains and plateau region
1997 Kufri Chipsona-1 Medium-maturing and resistant to late blight.
Excellent for chip making. Indo-Gangetic plains
1997 Kufri Chipsona-2 Medium-maturing and resistant to late blight.
Excellent for Chipping. Indo-Gangetic plains
1997 Kufri Giriraj Medium to late-maturing and resistant to late blight.

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 Export Potential of Potato to Nepal from India
North western hills
1998 Kufri Anand Medium maturing and resistant to late blight. Heavy
yielder. Northern plains

Indian scenario:
Taste the power of Indian potato:
Indian vegetable basket is incomplete without mentioning the king of vegetable potato a sustaining
force and a culinary delight. The power of potato is known for sustaining millions of lives by providing
foods and nutrition during distress time. Its high production potential per unit area, high nutritional
value and a great taste makes potato one of the most important food crops in the world. Classified as a
vegetable, potatoes helps contribute to the minimum goal of eating five services of fruits and vegetables
per day. One serving-a 5.3 ounce, medium potato provides:

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 Export Potential of Potato to Nepal from India
 45 percent of the daily value for vitamin C
 21 percent of the daily value for potassium
 Three grams of fiber only 100 calories

The tantalizing taste of nutrient-rich potatoes makes it an essential part of every break fast, lunch and
dinner worldwide. An array of dishes created by potato speaks volumes about the variety of that it
offers to palate. India produces around 15 varieties of potatoes that come in different shapes, size, skin
color and flavor. Kufri jyoti, kufri lauvkar, kufri swarna, kufri lalima and kufri giriraj are some of the
varreites that from a part of Indian potato portfolio. ‘Powered with energy’ Indian potato is all set to
woo the world market by its sheer variety and taste.

Endowment of Indian potato industry:

In India, potatoes are grown in winter under short day condition and harvested from January to march
when there is no fresh harvest of potato in most parts of northern hemisphere making it a strategic crop
from export point of view.

India produces about 28 millions tones of potato and the productivity of potato in India is 19tons / hac,
which is higher than the world average of 16.5 tons /hac.

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The Indian potato is cultivated in sandy or sandy loam soils resulting in good shape and luster to the
tubers. Preferred world wide for its test, Indian meets the international quality standards in terms of
freedom from prohibited diseases, shape, size, skin color, flesh and dry matter content.

Over the years India has developed indigenous technologies including development of suitable varieties,
seed production technology, agro techniques and post-harvest technologies offering world a quality
product.

India is the 4th largest producer of potatoes in the world. Potato is 4rt major crop of India. The total
crop production is 23.7million tones cultivated in an area of 1.26 M.hac...

U.P.is the first largest producer of potatoes in India. The total crop production of Utter Pradeshis 10248
thousand tons in area of 469 thousand hectares with an average yield of108.29 quintals per hectare in
year 2008. The climatc condition, soil-texture, irrigation facilities, cultivation practices of Malwa region
are favorable for process grade potatoes.

2.4- Other Products Processed from Potato

Tableware potato:
Used as a traditional food item in India and abroad. In fact, this potato grade is used as a staple food
item in many underdeveloped economies.

Process grade potatoes:

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 Export Potential of Potato to Nepal from India
These potatoes differ from tableware potato on aspects as size, sugar content, bruise (process grade
potatoes are sugar free), skin texture, flesh color. Hence, these potatoes find applicability in various
value added items and are put to use in following:


Potato chips

Potato Pringles

Potato vages

Potato nankeens ( over 100 varieties)

Potato flakes

Potato cubes

Policed potatoes

Potato French fries

Pieced potatoes

Shredded potatoes

Potato granules

Potato powder/flour

Potato as thickening agent

Potato as baking ingredient

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 Export Potential of Potato to Nepal from India

Frozen potatoes

Potato vodka & fertilizer out of waste potatoes

Food Value in Potatoes:

Potatoes also enhance the quality of food. The data given in following table demonstrates that potatoes
give a high food value in terms of composition of nutrients as carbohydrates, minerals, fiber,
phosphorus, iron, vitamin-B&C per unit area.
Potato varieties Nutrients corresponding
composition
. carbohydrates 42.5%

Minerals 21.1%
Kufri jyoti,
Fiber 7.5%
chandramukhi Fat 6.2%
Laukar& chipsona Calcium 21.1%
Phosphorus 5%
1-2
Iron 1.3%
Vitamin-B 2.5%
Vitamin-C 1.8%

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Chapter: 3

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3.1 Country Profile:

.

Government of India

The Constitution of India, the longest and the most exhaustive constitution of any independent nation in the
world, came into force on 26 January, 1950 The preamble of the constitution defines India as a sovereign,
socialist, secular, democratic republic India has a bicameral parliament operating under a Westminster-style
parliamentary system. Its form of government was traditionally described as being 'quasi-federal' with a strong
centre and weaker states, but it has grown increasingly federal since the late 1990s as a result of political,
economic and social changes[The President of India is the head of state elected indirectly by an electoral college
for a five-year term[The Prime Minister is the head of government and exercises most executive powers.
Appointed by the President, the Prime Minister is by convention supported by the party or political alliance
holding the majority of seats in the lower house of Parliament. The executive branch consists of the President,
Vice-President, and the Council of Ministers (the Cabinet being its executive committee) headed by the Prime
Minister. Any minister holding a portfolio must be a member of either house of parliament. In the Indian
parliamentary system, the executive is subordinate to the legislature, with the Prime Minister and his Council
being directly responsible to the lower house of the Parliament.

The Legislature of India is the bicameral Parliament, which consists of the upper house called the Rajya Sabha
(Council of States) and the lower house called the Lok Sabha (House of People). The Rajya Sabha, a permanent
body, has 245 members serving staggered six year terms. Most are elected indirectly by the state and territorial
legislatures in proportion to the state's population.543 of the Lok Sabha's 545 members are directly elected by
popular vote to represent individual constituencies for five year terms. The other two members are nominated by
the President from the Anglo-Indian community if the President is of the opinion that the community is not
adequately represented.

India has a unitary three-tier judiciary, consisting of the Supreme Court, headed by the Chief Justice of India,
twenty-one High Courts, and a large number of trial courts. The Supreme Court has original jurisdiction over
cases involving fundamental rights and over disputes between states and the Centre, and appellate jurisdiction
over the High Courts. It is judicially independent, and has the power to declare the law and to strike down Union
or State laws which contravene the Constitution. The role as the ultimate interpreter of the Constitution is one of
the most important functions of the Supreme Court.

Political and administrative divisions

India consists of twenty-eight states and seven Union Territories. All states, and the two union territories of
Puducherry and the National Capital Territory of Delhi, have elected legislatures and governments patterned on
the Westminster model. The other five union territories have centrally appointed administrators and hence are
under direct rule of the President. In 1956, under the States Reorganization Act, states were formed on a
linguistic basis. Since then, this structure has remained largely unchanged. Each state or union territory is further
divided into 610 districts for basic governance and administration. The districts in turn are further divided into
tehsils and eventually into villages.

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ECONOMY

The Bombay Stock Exchange, in Mumbai, is Asia's oldest and India's largest stock exchange.
For an entire generation from the 1950s until the 1980s, India followed socialist-inspired policies. The
economy was shackled by extensive regulation, protectionism, and public ownership, leading to pervasive
corruption and slow growth. Since 1991, the nation has moved towards a market-based system. The
policy change in 1991 came after an acute balance of payments crisis, and the emphasis since then has
been to use foreign trade and foreign investment as integral parts of India's economy. With an average
annual GDP growth rate of 5.8% for the past two decades, the economy is among the fastest growing in
the world. It has the world's second largest labor force, with 516.3 million people. In terms of output, the
agricultural sector accounts for 28% of GDP; the service and industrial sectors make up 54% and 18%
respectively. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane,
potatoes; cattle, water buffalo, sheep, goats, poultry; fish Major industries include textiles, chemicals,
food processing, steel, transport equipment, cement, mining, petroleum, machinery, software. India's trade
has reached a relatively moderate share 24% of GDP in 2006, up from 6% in 1985. India's share of world
trade has reached 1%. Major exports include petroleum products, textile goods, gems and jewelry,
software, engineering goods, chemicals, leather manufactures Major imports include crude oil, machinery,
gems, fertilizer, chemicals India’s GDP is US$1.089 trillion, which makes it the twelfth-largest economy
in the world[103] or fourth largest by purchasing power adjusted exchange rates. India's nominal per capita
income US$977 is ranked 128th in the world. In the late 2000s, India's economic growth has averaged 7½
% a year, which will double the average income in a decade India remains one of the poorest countries in
the world. The percentage of people living below the new international poverty line $1.25 a day (PPP, in
nominal terms Rs 21.6 a day in urban areas and Rs 14.3 in rural areas in 2005) decreased from 60% in
1981 to 42% in 2005.[104] 85.7% of the population was living on less than $2.50 (PPP) a day in 2005,
compared with 80.5% for Sub-Saharan Africa. Even though India has avoided famines in recent decades,
half of children are underweight, one of the highest rates in the world and nearly double the rate of Sub-
Saharan Africa. Ongoing reforms are watched closely as India could become potentially important for the
global economy. A Goldman Sachs report predicts that "from 2007 to 2020, India’s GDP per capita will
quadruple," and that the Indian economy will surpass the United States by 2043, but India "will remain a
low-income country for several decades, with per capita incomes well below its other BRIC peers. But if
it can fulfill its growth potential, it can become a motor for the world economy, and a key contributor to
generating spending growth

Although the Indian economy has grown steadily over the last two decades; its growth has been uneven
when comparing different social groups, economic groups, geographic regions, and rural and urban areas

World Bank suggests that the most important priorities are public sector reform, infrastructure,
agricultural and rural development, removal of labor regulations, reforms in lagging states, and
HIV/AIDS.

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Nepal:

Kingdom of Nepal

Ruler: King Gyanendra Bir Bikram Shah Deva (2001)

Prime Minister: Pushpa Kamal Dahal (2008)

President: Ram Baran Yadav (2008)

Current government officials

Land area: 52,819 sq mi (136,801 sq km); total area: 54,363 sq mi (140,800 sq km)

Population (2008 est.): 29,519,114 (growth rate: 2.0%); birth rate: 29.9/1000; infant mortality rate:
62.0/1000; life expectancy: 60.9; density per sq km: 206

Capital and largest city (2003 est.): Kathmandu, 1,203,100 (metro. area), 729,000 (city proper)

Other large cities: Biratnagar, 174,600; Lalitpur, 169,100

Monetary unit: Nepalese rupee

Languages: Nepali 48% (official), Maithali 12%, Bhojpuri 7%, Tharu 6%, Tamang 5%, others. English
spoken by many in government and business (2001)

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Ethnicity/race: Brahman-Hill 12.5%, Chetri 15.5%, Magar 7%, Tharu 6.6%, Tamang 5.5%, Newar
5.4%, Muslim 4.2%, Kami 3.9%, Yadav 3.9%, other 32.7%, unspecified 2.8% (2001)

Religions: Hindu 81%, Buddhist 11%, Islam 4%, Kirant 4% (2001)

Literacy rate: 45% (2003 est.)

Economic summary: GDP/PPP (2007 est.): $29.04 billion; per capita $1,200. Real growth rate:
2.5%. Inflation: 6.4%. Unemployment: 42% (2004 est.). Arable land: 16%. Agriculture: rice, corn,
wheat, sugarcane, root crops; milk, water buffalo meat. Labor force: 11.11 million; note: severe lack of
skilled labor (2004 est.); agriculture 76%, industry 6%, services 18%. Industries: tourism, carpet,
textile; small rice, jute, sugar, and oilseed mills; cigarettes, cement and brick production. Natural
resources: quartz, water, timber, hydropower, scenic beauty, small deposits of lignite, copper, cobalt,
iron ore. Exports: $830 million f.o.b. (2006 est.), but does not include unrecorded border trade with
India: carpets, clothing, leather goods, jute goods, grain. Imports: $2.398 billion f.o.b. (2006 est.): gold,
machinery and equipment, petroleum products, fertilizer. Major trading partners: India, U.S.,
Germany, China, Indonesia (2006).

Communications: Telephones: main lines in use: 595,800 (2006); mobile cellular: 1.042 million
(2006). Radio broadcast stations: AM 6, FM 5, shortwave 1 (Jan. 2000). Radios: 840,000 (1997).
Television broadcast stations: 1 (plus 9 repeaters) (1998). Televisions: 130,000 (1997). Internet
Service Providers (ISPs): 18,733 (2007). Internet users: 249,400 (2006).

Transportation: Railways: total: 59 km (2006). Highways: total: 17,380 km; paved: 9,886 km;
unpaved: 7,494 km (2004). Ports and harbors: none. Airports: 47 (2007).

International disputes: joint border commission continues to work on small disputed sections of
boundary with India; India has instituted a stricter border regime to restrict transit of Maoist insurgents.

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 Export Potential of Potato to Nepal from India

Introduction of Nepal:

Geography

A landlocked country the size of Arkansas, lying between India and the Tibetan Autonomous Region of
China, Nepal contains Mount Everest (29,035 ft; 8,850 m), the tallest mountain in the world. Along its
southern border, Nepal has a strip of level land that is partly forested, partly cultivated. North of that is
the slope of the main section of the Himalayan range, including Everest and many other peaks higher
than 8,000 m.

Government

In Nov. 1990, King Birendra promulgated a new constitution and introduced a multiparty parliamentary
democracy in Nepal. Under pressure amid massive pro-democracy protests in April 2006, King
Gyanendra gave up direct rule and reinstated Parliament, which then quickly moved to diminish the his
powers. In December 2007, Parliament voted to abolish the monarchy and become a federal democratic
republic. The transition to a republic was completed in May 2008, when the Constituent Assemby voted
to dissolve the monarchy.

History

The first civilizations in Nepal, which flourished around the 6th century B.C., were confined to the
fertile Kathmandu Valley where the present-day capital of the same name is located. It was in this
region that Prince Siddhartha Gautama was born c. 563 B.C. Gautama achieved enlightenment as
Buddha and spawned Buddhist belief.

Nepali rulers' early patronage of Buddhism largely gave way to Hinduism, reflecting the increased
influence of India, around the 12th century. Though the successive dynasties of the Gopalas, the Kiratis,
and the Licchavis expanded their rule, it was not until the reign of the Malla kings from 1200–1769 that
Nepal assumed the approximate dimensions of the modern state.

The kingdom of Nepal was unified in 1768 by King Prithvi Narayan Shah, who had fled India following
the Moghul conquests of the subcontinent. Under Shah and his successors Nepal's borders expanded as

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 Export Potential of Potato to Nepal from India
far west as Kashmir and as far east as Sikkim (now part of India). A commercial treaty was signed with
Britain in 1792 and again in 1816 after more than a year of hostilities with the British East India
Company.

The Independence of Nepal and the First Free Election

In 1923, Britain recognized the absolute independence of Nepal. Between 1846 and 1951, the country
was ruled by the Rana family, which always held the office of prime minister. In 1951, however, the
king took over all power and proclaimed a constitutional monarchy. Mahendra Bur Bikram Shah
became king in 1955. After Mahendra died of a heart attack in 1972, Prince Birendra, at 26, succeeded
to the throne.

In 1990, a pro-democracy movement forced King Birendra to lift the ban on political parties. The first
free election in three decades provided a victory for the liberal Nepali Congress Party in 1991, although
the Communists made a strong showing. A small but growing Maoist guerrilla movement, seeking to
overthrow the constitutional monarchy and install a Communist government, began operating in the
countryside in 1996.

On June 1, 2001, King Birendra was shot and killed by his son, Crown Prince Dipendra. Angered by his
family's disapproval of his choice of a bride, he also killed his mother and several other members of the
royal family before shooting himself. Prince Gyanendra, the younger brother of King Birendra, was then
crowned king.

King Gyanendra Asserts Control over the Government

King Gyanendra dismissed the government in October 2002, calling it corrupt and ineffective. He
declared a state of emergency in November and ordered the army to crack down on the Maoist
guerrillas. The rebels intensified their campaign, and the government responded with equal intensity,
killing hundreds of Maoists, the largest toll since the insurgency began in 1996. In Aug. 2003, the
Maoist rebels withdrew from peace talks with the government and ended a cease-fire that had been
signed in Jan. 2003. The following August, the rebels blockaded Kathmandu for a week, cutting off
shipments of food and fuel to the capital.

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 Export Potential of Potato to Nepal from India
King Gyanendra fired the entire government in Feb. 2005 and assumed direct power. Many of the
country's politicians were placed under house arrest, and severe restriction on civil liberties were
instituted. In Sept. 2005, the Maoist rebels declared a unilateral cease-fire, which ended in Jan. 2006. In
April, massive pro-democracy protests organized by seven opposition parties and supported by the
Maoists took place. They rejected King Gyanendra's offer to hand over executive power to a prime
minister, saying he failed to address their main demands: the restoration of parliament and a referendum
to redraft the constitution. Days later, as pressure mounted and the protests intensified, King Gyanendra
agreed to reinstate parliament. The new parliament quickly moved to diminish the king's powers and
selected Girija Prasad Koirala as prime minister. In May, it voted unanimously to declare Nepal a
secular nation and strip the king of his authority over the military.

Steps Toward Peace and A New Constitution

Maoist rebels and the government signed a landmark peace agreement in November 2006, ending the
guerrilla’s 10-year insurgency that claimed some 12,000 people. In March 2007, the Maoists achieved
another milestone when they joined the interim government. Just months later, in September 2007,
however, the Maoists quit the interim government, claiming that not enough progress had been made in
abolishing the monarchy and forming a republic. They agreed to rejoin the interim government in
December, when Parliament voted to abolish the monarchy and become a federal democratic republic.

In April 2008, millions of voters turned out to elect a 601-seat Constituent Assembly that will write a
new constitution. The Maoist rebels, who recently signed a peace agreement with the government that
ended the guerrilla’s 10-year insurgency, won 120 out of 240 directly elected seats. In May, the
assembly voted to dissolve the 239-year-old monarchy, thus completing the transition to a republic.
King Gyanendra vacated Narayanhiti Palace in June and began life as a commoner.

Prime Minister Girija Prasad Koirala resigned in June, after two years in office. In July, the Maoists said
they would not participate in the government when their candidate for president, Ramraja Prasad Singh,
was defeated. Other parties in the Constituent Assembly united to elect Ram Baran Yadav as the
country's first president. The move seemed to jeopardize the peace process. A Maoist was elected prime
minister in August, however. The Constituent Assembly voted 464 to 113 in favor of Maoist leader
Pushpa Kamal Dahal, known as Prachanda, over Sher Bahadur Deuba, a member of the Nepali

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 Export Potential of Potato to Nepal from India
Congress Party who served as prime minister three times. In a compromise, the Maoists say they will
not hold posts in the party’s armed faction and will return private property it seized from opponents.

3.2 India-Nepal Trade Relation

Relations between India and Nepal are close yet fraught with difficulties stemming from geography,
economics, the problems inherent in big power-small power relations, and common ethnic, linguistic
and cultural identities that overlap the two countries' borders. New Delhi and Kathmandu initiated their
intertwined relationship with the 1950 Indo-Nepal Treaty of Peace and Friendship and accompanying
letters that defined security relations between the two countries, and an agreement governing both
bilateral trade and trade transiting Indian soil. The 1950 treaty and letters stated that "neither
government shall tolerate any threat to the security of the other by a foreign aggressor" and obligated
both sides "to inform each other of any serious friction or misunderstanding with any neighboring state
likely to cause any breach in the friendly relations subsisting between the two governments." These
accords cemented a "special relationship" between India and Nepal that granted Nepal preferential
economic treatment and provided Nepalese in India the same economic and educational opportunities as
Indian citizens.

History

1950- 1970

In the 1950s, Nepal welcomed close relations with India, but as the number of Nepalese living and
working in India increased and the involvement of India in Nepal's economy deepened in the 1960s and
after, so too did Nepalese discomfort with the special relationship. Tensions came to a head in the mid-
1970s, when Nepal pressed for substantial amendments in its favor in the trade and transit treaty and
openly criticized India's 1975 annexation of Sikkim as an Indian state. In 1975 King Birendra Bir
Bikram Shah Dev proposed that Nepal be recognized internationally as a zone of peace; he received
support from China and Pakistan. In New Delhi's view, if the king's proposal did not contradict the 1950
treaty and was merely an extension of nonalignment, it was unnecessary; if it was a repudiation of the
special relationship, it represented a possible threat to India's security and could not be endorsed. In

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1984 Nepal repeated the proposal, but there was no reaction from India. Nepal continually promoted the
proposal in international forums, with Chinese support; by 1990 it had won the support of 112 countries.

1970- 1980

In 1978 India agreed to separate trade and transit treaties, satisfying a long-term Nepalese demand. In
1988, when the two treaties were up for renewal, Nepal's refusal to accommodate India's wishes on the
transit treaty caused India to call for a single trade and transit treaty. Thereafter, Nepal took a hard-line
position that led to a serious crisis in India-Nepal relations. After two extensions, the two treaties
expired on March 23, 1989, resulting in a virtual Indian economic blockade of Nepal that lasted until
late April 1990. Although economic issues were a major factor in the two countries' confrontation,
Indian dissatisfaction with Nepal's 1988 acquisition of Chinese weaponry played an important role. New
Delhi perceived the arms purchase as an indication of Kathmandu's intent to build a military relationship
with Beijing, in violation of the 1950 treaty and letters exchanged in 1959 and 1965, which included
Nepal in India's security zone and precluded arms purchases without India's approval. India linked
security with economic relations and insisted on reviewing India-Nepal relations as a whole. Nepal had
to back down after worsening economic conditions led to a change in Nepal's political system, in which
the king was forced to institute a parliamentary democracy. The new government sought quick
restoration of amicable relations with India.

1990s

The special security relationship between New Delhi and Kathmandu was reestablished during the June
1990 New Delhi meeting of Nepal's prime minister Krishna Prasad Bhattarai and Indian prime minister
V.P. Singh. During the December 1991 visit to India by Nepalese prime minister Girija Prasad Koirala,
the two countries signed new, separate trade and transit treaties and other economic agreements
designed to accord Nepal additional economic benefits.

Indian-Nepali relations appeared to be undergoing still more reassessment when Nepal's prime minister
Man Mohan Adhikary visited New Delhi in April 1995 and insisted on a major review of the 1950

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 Export Potential of Potato to Nepal from India
peace and friendship treaty. In the face of benign statements by his Indian hosts relating to the treaty,
Adhikary sought greater economic independence for his landlocked nation while simultaneously striving
to improve ties with China.

21 Century

In 2005, after King Gyanendra took over, Nepalese relations with India soured. However, after the
restoration of democracy, in 2008, Prachanda, the Prime Minister of Nepal, visited India, in September
2008. He spoke about a new dawn, in the bilateral relations, between the two countries. He spoke about
a new dawn, in their relations. He said, "I am going back to Nepal as a saisfied person. I will tell Nepali
citizens back home that a new era has dawned. Time has come to effect a revolutionary change in
bilateral relations. On behalf of the new government, I assure you that we are committed to make a fresh
start." He met Indian Prime minister, Manmohan Singh, and Foreign Minister, Pranab Mukherjee. He
asked India to help Nepal frame a new constitution, and to invest in Nepal's infrastructure, and its
tourism industry.

In 2008, Indo-Nepali ties got a further boost with an agreement to resume water talks after a 4 year
hiatus.[1] The Nepalese Water Resources Secretary Shanker Prasad Koirala said the Nepal-India Joint
Committee on Water Resources meet decided to start the reconstruction of breached Kosi embankment
after the water level goes down.During the Nepal PM's visit to New Delhi in September the two Prime
Ministers expressed satisfaction at the age-old close, cordial and extensive relationships between their
states and expressed their support and cooperation to further consolidate the relationship.

The two issued a 22-point statement highlighting the need to review, adjust and update the 1950 Treaty
of Peace and Friendship, amongst other agreements. India would also provide a credit line of up to 150
crore rupees to Nepal to ensure uninterrupted supplies of petroleum products, as well as lift bans on the
export of rice, wheat, maize, sugar and sucrose for quantities agreed to with Nepal. India would also
provide 20 crore as immediate flood relief.
In return, Nepal will take measures for the "promotion of investor friendly, enabling business
environment to encourage Indian...investments in Nepal."

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 Export Potential of Potato to Nepal from India
Furthermore, a three-tier mechanism at the level of ministerial, secretary and technical levels will be
built to push forward discussions on the development of water resources between the two sides.[3]
Politically, India acknowledged a willingness to promote efforts towards peace in Nepal. Indian
External affairs minister Pranab Mukherjee promised the Nepali Prime Minister Prachanda that he
would "extend all possible help for peace and development."[4]

In 2008, the Bollywood film Chandni Chowk to China was banned in Nepal, because of a scene
suggesting the Gautama Buddha was born in India.[5] Some protesters called for commercial boycott of
all Indian films.

Bilateral and regional relations

Relations between India and Nepal are close yet fraught with difficulties stemming from geography,
economics, the problems inherent in big power-small power relations, and common ethnic and linguistic
identities that overlap the two countries' borders. In 1950 New Delhi and Kathmandu initiated their
intertwined relationship with the Treaty of Peace and Friendship and accompanying letters that defined
security relations between the two countries, and an agreement governing both bilateral trade and trade
transiting Indian soil. The 1950 treaty and letters stated that "neither government shall tolerate any threat
to the security of the other by a foreign aggressor" and obligated both sides "to inform each other of any
serious friction or misunderstanding with any neighboring state likely to cause any breach in the friendly
relations subsisting between the two governments." These accords cemented a "special relationship"
between India and Nepal that granted Nepal preferential economic treatment and provided Nepalese in
India the same economic and educational opportunities as Indian citizens

The right balance in Indo-Nepal trade treaties

India and Nepal forged a bilateral treaty of trade way back in July 1950. The treaty envisaged a customs
union between the two countries. The trade treaty of September 1960 removed the requirement of a
customs union, enabling Nepal to adopt its own tariff and trade policy, which led to its trade
diversification with third countries.

The trade treaty signed in August 1971 exempted Nepal’s exports of primary products to India free of
basic customs duties. This treaty offered to grant Nepal, on the basis of non-reciprocity, favourable
treatment to imports into India of products manufactured in Nepal, containing not less than 90% of

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 Export Potential of Potato to Nepal from India
Nepalese and/or Indian materials manufactured in Nepal in respect of customs duty and quantitative
restrictions normally applicable on them.

For other manufactured articles in which third country material are used, if value of Nepalese and/or
Indian materials and Nepalese labour added in Nepal is at least 50% of the ex-factory price of the
product, the government of India will provide favourable treatment to imports of such products in India.

In August 1978 India agreed to sign two separate treaties, a treaty on trade and a treaty on transit,
fulfilling a long-standing Nepalese demand. In addition, the Indian demand to prevent deflection of
unauthorised trade was also satisfied with the signing of an Agreement on Cooperation to Control
Unauthorised Trade.

After the expiry of this treaty in 1988, a trade deadlock ensued between the two countries until a
democratic government was set up in Nepal in 1990. Following this, a new agreement was signed in
December 1991, which was renewed in December 1996, under a revised protocol with reference to
Article V. A notable feature of this treaty was that it provided, for the first time, the Nepalese access to
the Indian market free of customs duties and quantitative restrictions for all articles manufactured in
Nepal on the basis of certificates of origin issued by the then HMG of Nepal (or by its designated
agency, the Federation of Nepalese Chambers of Commerce & Industry), waiving the rules of origin
requirement entirely.

Following the concession, there took place considerable buoyancy in Nepalese exports to India.
However, taking advantage of Nepal’s low customs tariff on a number of sensitive products, with
minimal or no processing, Nepali companies made large inroads to the Indian market. In particular, a
number of small scale vanaspati manufacturers in Eastern India were unable to meet the competition and
had: to wind up their operations.

Due to differences between the two governments on the trade deflection issue, the trade treaty of 1996,
which was scheduled to expire in December 2001, could be renewed for a period of five years only with
effect from March 2002. The automatic extension of the agreement for further periods of five years at a
time has been ensured by the clause that the treaty continues, unless either of the parties gives to the
other a written notice, three months in advance, of its intention to terminate the treaty.

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 Export Potential of Potato to Nepal from India
The protocol with reference to Article V of the trade treaty stipulated adherence to a new rules of origin
criteria. The rules of origin provisions made in renewed trade treaty requires Nepalese manufactured
exports to fulfill twin criteria for their preferential access to the Indian market free of customs duties
normally applicable and quantitative restrictions; (i) domestic content requirements defined in terms of
value added which has been fixed at 30% of ex-factory price of articles produced in Nepal from March
2003 onwards; and (ii) requirements in terms of change in tariff heading at four digit level of the
harmonised system code.

In addition, tariff rate quotas have been imposed on Nepal’s four export items to India, that is, vegetable
ghee, acrylic yarn, copper and zinc oxide. Such products would enter duty-free up to the level of
assigned quota, but subsequent exports would attract India’s normal MFN rates.

The Indian position on the imposition of rules of origin is that India’s trade preferences to Nepal are
designed to promote the country’s industrialisation through backward linkages with its economy, which
the rules of origin makes possible. But the question that arises in this context is that once the rules of
origin are in place, was there a need to apply in addition, tariff rate quotas?

Further Nepalese negotiators have often been raising issues of India’s restrictive non-tariff barriers that
severely constrain Nepalese exports to India, particularly its agricultural and food exports that are
subjected to mandatory laboratory tests in laboratories located thousands of kilometers from the
principal land customs stations. India’s decision to build up trade infrastructure in Nepal to facilitate
Indo-Nepal trade is an effort in the right direction.

...

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Chapter: 4

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 Export Potential of Potato to Nepal from India

4.1 Export of potato to Nepal from India

\Year 2003- 2004- 2005- 2006- 2007-

2004 2005 2006 2007 2008

1 Values in Rs. 1,989.15 1,646.19 1,528.03 1,610. 2,435.

. Lacs 66 62
2 %Growth -17.24 -7.18 5.41 51.22
.
3 Total export 2,778.65 3,175.47 3,882.58 5,770. 5885.
. of commodity 10 68

4 %Growth 14.28 22.27 48.62 56.22

.
5 %Share of 71.59 51.84 39.36 27.91 58.79
. country (1 of
3)

6 Total export to 307,578. 333,903. 380,738. 420,1 606,3

. country 76 93 81 38.23 48.08

7 %Growth 8.56 14.03 10.35 44.32

.
8 %Share of 0.65 0.49 0.40 0.38 0.40
. commodity (1
of 6)

SOURCE:commerece.nic.in

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 Export Potential of Potato to Nepal from India

4.2 DOCUMENTATION REQUIRED FOR EXPORT OF POTATOES

 LORRY RECEIPT
 INVOICE
 PACKING LIST
 SHIPPING BILL
 BILL OF LADING
 CERTIFICATE OF ORIGIN
 PHYTOSANITORY CERTIFICATE
 BANK CERTIFICATE FOR EXPORT REALIZATION
 BANK’S CERTIFICATE

4.3 GOVERNMENT POLICIES AND AGENCIES

ROLE OF INDIAN GOVERNMENT IN THIS TRADE SENARIO:

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 Export Potential of Potato to Nepal from India

Preferential allotment of transportation facilities in the pre shipment process, Example –
allotment of rail rakes for transporting potatoes upto the port can be initiated initially in
passesnger train.

Provide proper refridgerated warehousing facilities at the port.

Interest relevant governmental agencies with storage of potatoes round the year that in terms
insures availability of potatoes for export purposes.

Reduction in container freight rates

Peferential availability of berths at the sea port for smooth loading of export consignment on to
the vessel.

Financial assistance to the exporters in terms of export packing credit limit facility, special
imprest licence and deemed export benefits.

Special government export incentives as DEPB, and Duty drawback Scheme.

Providing insuance coverage for tansport in break bulk barges

Pomoting special varieties of exports.

Involving governmental canalizing agencies fo boosing export as Markfed, NAFED, etc


Participation in trade fairs, organizing buyer seller meets at international levels.

Promoting consumer awareness programmes for consumption of potatoes in print media,
television, radio, internet as a healthy diet, as on th guidelines of Milk and Egg Promotion.
(Sunday ho ya Monday, roz khao potato)

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 Export Potential of Potato to Nepal from India

Providing better quality seeds to the farmers for better results in exports and fo processing
industries.

Setting up information network for building awareness amongst the farmers.
 Under the EXIM policy, announced on 8th April,
2005( educational CESS’ on agro exports have been removed)

SPECIFIC RESPONSIBILITES OF DIFFERENT GOVERNMENT

AGENCIES
AGENCIES INVOLVED STATE LEVEL
 Department of agriculture
 Department of horticulture
 Marketing federation
 Small industrial development corporation
 State electricity board
 Financial department(banks, cooperatives)
 Research agencies

AGENCIES INVOLVED – CENTRAL GOVERNMENT


APEDA

National horticulture board

Ministry of food processing and industry

Small farmers Agri consortium(SFAC)

Director general of foreign trade

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 Export Potential of Potato to Nepal from India

Ministry of agriculture
 Customs of shipping

Chapter: 4
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 Export Potential of Potato to Nepal from India

4.1 Role of APEDA in potato industry:

The agri-export zones (AEZs) scheme is now in full swing with the Agricultural and Processed Food
Export Development Authority (Apeda) already clearing 10 AEZs in different parts of the country
amounting to an aggregate multi-agency investment of Rs 215.03 crore in the current fiscal. This Rs
215.03 crore investment is expected to generate export earnings of Rs 1,700 crore per annum. The first
export consignment is expected from potato AEZs in Uttar Pradesh and Punjab by February 2002.

Apeda is also slated to clear five more AEZs on January 23 at the scheduled meeting of its steering
committee. The Reserve Bank of India (RBI) in a pathbreaking decision has told the banks to treat
inputs supplied to farmers by exporters as raw materials for exports and consider sanctioning the lines of
export credit to processors and exporters to cover the cost of such inputs supplied to farmers. Apeda is
formulating special marketing strategies for exports of mango, flower, grapes, meat and meat products,
basmati rice and potatoes.

Speaking to The Financial Express, Apeda chairman Anil Swarup said that by February end this year the
first consignment of potatoes is likely to be exported from the potato AEZs in UP and Punjab. He said
that by March end, the number of AEZs sanctioned in the current fiscal will scale up to 20. The export
of litchi from Uttaranchal AEZ will begin from June 2002. Export of mangoes from UP AEZs will
begin from summer 2002 and export of flower from Tamil Nadu AEZ from September 2002. Export of
pineapple from West Bengal AEZ will begin from 2003.

In the scheduled meeting of the Apeda steering committee on January 23, proposals for setting up of
five AEZs will be taken up, namely the organic pineapple AEZ in Agartala in Tripura, Mango AEZ in
Ratnagiri in Maharashtra, Vegetable and mango AEZ in Chitoor in Andhra Pradesh, onion AEZ

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 Export Potential of Potato to Nepal from India
covering Ujjain, Indore, Devas, Dhar and Shahjapur districts in MP and apple AEZ covering Srinagar,
Baramulla, Anantnag, Kupwara and Pulwana districts in Jammu & Kashmir.

Mr Swarup said that already over 20 more proposals for setting up of AEZs in different states are under
consideration. These proposals are for setting up of mango and dehydrated vegetables AEZs in Gujarat,
orange AEZ in Maharashtra, oilseeds AEZ in MP, mango and litchi AEZs in West Bengal, pineapple
AEZ in Assam, ginger AEZ in Mizoram, passion fruits AEZ in Manipur, walnut...

Chapter: 5
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 Export Potential of Potato to Nepal from India

Major producer country of potato in the world

Top Potato Producers

in 2008

(million metric tons)

People's 70
Republic of
China

Russia 39

India 24

United States 20

Ukraine 19

Germany 10

Poland 9

Belgium 8

Netherland 7
s

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 Export Potential of Potato to Nepal from India

France 6

World 315
Total

EXPORT POTENTIAL FROM INDIA:

TARGET MARKET

EXPORT MARKET:

Existing market- middle east countries as UAE, Muscat, Oman,Saudi Arabia,Turkey,Shri
Lanka,Mauritious and other neighbouring countries.


Emerging Market- Nepal,Singapur, Malaysia etc.

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 Export Potential of Potato to Nepal from India

Chapter:6
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 Export Potential of Potato to Nepal from India

Comparative study between India and competitive country

Major competitor countries- Iran,Pakistan,aholland,Germany,China etc.
A comparision between India and competitors countries

India Competitors
Competitive Locational proximity to target
strengths country markets,ability to supply in
bulk price competitive
Competitive An efficient supply
strengths chain, better quality
products, lower
prices, etc.

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 Export Potential of Potato to Nepal from India

Potato statistics of India vis-à-vis other countries

Area (average of 2007-08) Production (average of 2007-08)

Ran Country Ha R Country Mt
k an
k
1 China 4,630,454 1 China 68,892,594
2 Russia 3,195,433 2 Russia 34,860,837
3 Ukraine 1,599,000 3 India 22,090.7
4 India 1,255,667 4 USA 20,513,490
5 Poland 921,129 5 Ukraine 17,487,833
6 Belarus 570,133 6 Poland 16,211,420
7 USA 504,890 7 Germany 11,073,854
8 Germany 283,267 8 Belarus 7,929,433
9 Romania 280,116 9 Netherlands 6,925,751
10 Peru 259,985 10 UK 6,511,333
World 19,124,18 Total 313,770,63
1 8

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 Export Potential of Potato to Nepal from India

Chapter: 7

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 Export Potential of Potato to Nepal from India
SWOT Analysis
STRENGTH:
 Good quality potato.
 Higher yield in terms of quintals per hectare at a very high quality level.
 Potato varieties very well accepted in domestic and international markets.
 Climatic conditions and environmental conditions suited for producing
processed grade potatoes.
 Well connected sea port by rail and road.
 Advanced storage facilities for more than 50,000MT.
 Close location of potato production areas facilitating better coordination
amongst the farm produce units.
WEAKNESS:
 Lack of government support.
 Unawareness regarding pre and post harvest facilities/practices.
 Lack of export orientation.
 Procedural hassles.
 Prices not competitive in international market.
 Lack of infrastructural facilities/back up.
 Handling of material not properly managed on ports.
OPPORTUNTIES:
 Develop UP and other high dry matter content potato growing regions as international hub
for chips grade potato.
 Potato can be used for processing as well as tableware purpose.
 A large untapped area can be utilized for earning foreign exchange.
 India can become largest exporter of potato in south, east/west Asia.
 Our products can create a niche market for itself.
THREATS:
 International price competition.
 Unsystematic risks escalating the domestic in put prices.
 Logistically unfavorable.

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 Export Potential of Potato to Nepal from India
 Variation in temperature (Ambient Temperature).
 Perishable nature of the product.

EXPORTERS: CONSTRAINTS/LIMITATIONS FACED BY INDIAN

 Poor infrastructure in terms of non-availability of grading facilities.

 High container international freight rates.
 Inconsistent size norms In terms of non availability of grading facilities.
 Unavailability of warehousing facilities at seaport leading to damage of export
consignment.
 Lack of preferential availability of pre-shipment transportation facilities on a priority
basis.
 Procurement problems arising due to an unorganized supply chain.
 Unavailability of desired potato varieties in terms of size/other quality specifications In
bulk.
 Unregulated prices leading to a price uncertainty in procurement.
 Unnecessary documentation hassles in the shipment process.
 Lack of financial incentives/facilities (only on papers) to pursue the trade.

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 Export Potential of Potato to Nepal from India

Chapter: 8

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 Export Potential of Potato to Nepal from India
Conclusion & Suggestions
At last I would like to conclude my research project with the folloeing points:
While making the research project I had gone through to many things in which Indian potato
industry needs to improve and there are so many thinks in which Indian potato industry have a
comparative advantage with the other country. The following points will give a short highlight on the
ups and downs of Indian potato industry.
 India has a potential market in increasing its export of potato.
 Ther is a very much need of improving our basic infrastructure by giving special benefits to
farmars across the country.
 Government has to increase its subsidy and provide a healthy environment to the different
exporters in India.
 To over come the competition the Indian farmer has to improve the quality of potato by doing
better harvesting and by applying organic components to increase the productivity.
 Government has to increase its Reasearch $ development program in order to increase the
export of potato.
 Setting up of common pack house where all the wings of value chains can established at one
point.
Though Indian potato industry is in growing stage. The share of Indian market in international
position is less than 1%. So India has a very good opportunity to make a better position in international
market.
Suggestions
Action plan for achieving the export target
To start up with:
 Identification of pockets where quality potato are produced.
 Develop source centers through out the region.
 Inducing farmars for sowing export oriented varieties (Already delayed)
 Educating farmars on pre and post harvest techniques.
 Making proper grading and sorting facilities available to the farmars at the village levels
and storage levels.
 Motovating farmars , traders, storage owners to enter in the field of export.

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 Appointing a nodal officers to provide a market information, export procedures infprmation
and other governmental formalities.
 Appointment of independent inspection agency for ensuring quality of material to be
exported.
 Provide assistance to exporters in identification of overseas buyers.
 Canalizing all the activities involved from the source to destination.
 Developing proper marketing and distribution channel to streamline the process.
 Making easy finance available to exporters.
 Keen observation on pre- post harvest management.
Better pre and post harvest management:
The key strategy for implement successful model of agree export whicn will link procurement and
export marketingby setting up facilitate in betterment of quality by which more export realization can be
taken. As in agree export zone the theme is to produce what could be sold rather sell what is produced
for for this appointment of nodal officer are must.
The nodal agency is expected to coordinate between the supply chain units, procure processed grade
potatoes through supply chain and find buyers in export market for these potatoes.
The role of APEDA will be supportive and through would be on providing incentives, organizing
buyry- seller meets overseas etc.. The entire scheme would remove around streamlining the value chain
activities ranging from procurement to marketing to payment collection and finally ensuring a fair deal
to the small Indian potato producers for this to learn potato management is must and which is key thrust
of any organization.
Solutions to the problems:
Appointing a nodal officer for making tie- ups with the cold storage owners and exporters will be the
key to solving the problem. The nodal officer can motivate the producers to store the products properly
sothat they can avail of attractive prices by selling/exporting their goods. Proper sorting, packaging and
maintaining sanitary standerds in cold storages will be the key to meet international standerds.
Indivisually we are trying our best to regulate the strategies.
Better export logistics:
Negotiation with railways and port authority for single point clearance. Providing all the facilities to the
exporter under one roof.
Research and Development:

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Potato being perishable commodity every day there are challenges arising to its for this a complete R$D
units to be established which will check and govern the storability and long distance handling of the
different varieties of potatoes in various conditions and climates. By this be can have stress on particular
varieties and will develop a uniform practice basis on the soil conditions, which will further help us in
getting better markets and confidence for export, as well as satisfactory certification to our principles
abroad.
Competitive advantages through quality produce
If we are able to succeed in improving our quality and farm practices then automatically our costing will
be produced and will keep us competitive in international market. All incentives and other support
should be in line to cut down the cost of inputs and cost of production.
Selling prices:
There is no fixed selling price the price depends on the market demand and supply conditions, quantity
offered, quality of materials and logistic costs involved. Under any circumstances, it has been felt that
exporters have a margin of 10-15% additional than the prevailing domestic prices. The exporters can go
for forward contracting i.e. price is already decided for through out the years supply, so that the
volatility in the price market does not affect them.

Chapter: 10
References:
Bibliography:
Export Documentation (Acharya&Jain)
Economic Times

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Potato Business News etc.

Wewliography:
APEDA.com
Britishpotato.com
Timesofindia.com
Economictimes.com
Commerce.nic.in etc.

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