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25 pc freight subsidy on potato exports restored

LAHORE: The Federal government, in order to boost export, has restored the 25 percent subsidy on the freight of potato for export with immediate effect.

Punjab Agriculture Secretary, Rana Nasim Ahmad, in an exclusive interview told APP here on Wednesday that restoration of subsidy, once again will help Pakistan to capture major export market, Sri Lanka for potato with competitive rates as compared with Indian exporters.

He said that Indian exporters have to spend less freight charges as compared to Pakistan because India is much nearer to Sri Lanka.

He said that Pakistan earned $16 million foreign exchange out of its total potato production of 16.8 million tonnes in the Punjab against 1,21,279 tonnes potato export last year. He said that in the corresponding period the last year, only 38,000 million tonnes of potato was exported.

Rana Nasim said that the major factors which contributed towards increase in export of potato were grant of subsidy at the rate of 25 percent and lower prices in the domestic market. This subsidy was, however, withdrawn by the Ministry of Commerce with effect from September 30 last. He said that during July-December last 31,847 million tonnes of potato has been exported as compared to 45,247 million tonnes in the corresponding period last year.

Rana Nasim was of the view that the export will however pick up during the first quarter of the current calendar year.

The Secretary said that on the request of the Punjab Government, a meeting was held with the exporters in Export Promotion Bureau at Karachi recently and exporters demanded restoration above subsidy in order to compete with India in Sri Lanka market. He said that 93,000 million tonnes of potato went to Sri Lanka alone out of a total of 121,279 million exported during last financial year.

He said that potato export will also have direct good impact on domestic price of potato across the country which is good omen for growers and farmers. He said that now the prices of potatoes in the wholesale market have gone down from the range of Rs. 950 to Rs. 450 per 100 kilogram in the last one month. APP