Potatoes from Pakistan: Good Production, Export, and Price

High Production during the 2018/2019 Season

Pakistani potatoes have been performing very well in the last few years. Many farmers have invested in producing potatoes since potatoes are a very lucrative crop due to high demand. Most potatoes from Pakistan are consumed locally, but the export has been increasing year-on-year. During the last season, the 2019 season, the production of potatoes was extremely high as there was a bumper crop. According to Muhammed Tauha from Chase International, a Pakistani exporter of potatoes, the production reached over 4.1 million tons of which 3 million tons is meant for local consumption and the rest for export.

The company produces two main varieties of potatoes: the Santa and the Mozika. These are the most commonly grown potatoes in Pakistan and have a typical, yellow skin. The Santa is round, whereas the Mozika is very oval. The company also grows Astrex, a red-skinned potato. The potatoes are harvested between mid-December and April and between June and the start of the new season, potatoes from the cold storage are sold and exported.

Export and Competition

Pakistani potato exports have been increasing. In 2018, the country exported 120.9 million USD worth of potatoes, mainly to Afghanistan, the Middle East, and Russia. The total export value is expected to be higher this year, for which Chase International gives two reasons. Firstly, the high production result over the last season will contribute to the increase in export.

Secondly, Pakistan’s main competitor for potatoes, Egypt, focused on different markets over the last season. Pakistani and Egyptian potatoes are very similar to each other in terms of size, look, and taste, and Egypt is seen as Pakistan’s main competitor for that reason. Normally, Egypt supplies its potatoes to Russia and European countries. This year, the demand from Europe was higher due to low potato yields in key producing countries, such as the Netherlands. Egypt’s export focus shifted to Europe, allowing Pakistan to export more potatoes to Russia.

Prices and Forecasts

Currently, potatoes are not in season, so all potatoes sold come from the cold storage. Due to last season’s bumper crop, the volumes in the cold storage are high enough to ensure steady local sales and exports until the new season starts. However, as the potatoes have been in cold storage since late June, the price for potatoes has increased slightly, by around 2-3%. This seasonal increase happens every year during the second half of the year and is mainly due to the costs of the cold storage. When the new potatoes are harvested in January, the price decreases again. The average annual export price for Pakistani potatoes is also rising slightly, but by less than 1% annually, mainly due to higher costs of pesticides and fluctuating national exchange rates, states Chase International.

The production quantity in the coming season, 2020, is expected to be around 4 million tons, on par with last season's production volume. The export volume will highly depend on the actions taken by Pakistan’s competitors. To secure more markets for Pakistani produce, the Pakistani government is trying to open up the Chinese market as well. This, however, is expected to take time.