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11. EXPECTED RESULTS AND SIGNIFICANCE
OF THE STUDY

 

The expected results are categorized based on
the study objectives and stated by text, graph and table form. All expected
results and significance of the study are given below-

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11.1:
Status Potato Production in Bangladesh:

 

Bangladesh is now one of the big potato
producing country in the world and seventh
ranked in globally
and China, India, Russia, Ukraine, USA and Germany were ahead of Bangladesh. (FAO of United Nation-2013) and
within a few years will also be big exporting country (MEGA Group-2016) in the
world. Around 10,00000 farmers engaged in potato cultivation and land size
around 136332 ha
(Banglapedia). Bangladesh
farmers get benefit by cultivation the potato then other crops. In recent year,
potato land size and yield per hector increased. The potato production trend
are given below in the figure-

Figure-1:
Potato production trend respectively in Bangladesh. Source: FAOSTAT 2005.

 

In the
figure revealed that every year, potato production increased in Bangladesh. The
climate and soil condition for potato production in Bangladesh is good and day
by day farmers getting encouragement to produce the potato so increasing the
.potato production.

11.2:
Local consumption of Potato in Bangladesh:

 

According to the DAE, Directorate General of
Food (DGoF-2014), annual consumption demand for potato in the country is 6.5-7
million tons and average annual production of potato in the Bangladesh is
around 10.4 million tons (The Daily Sun, 2017). Potato
is now the second staple food item of Bangladesh and per-person potato
consumption rose to 10 times more than that were in 1980 said  Matia
Chowdhury, Agriculture Minister ( Prothom Alo, 30 Oct 2015). The country consumptions 7 million tons are counted
the direct consumption, seed for next year and post-harvest loss. Per year
potato consumptions are increasing since population are increasing and changing
the habit to intake the potato.

 

11.3:
Potato export from Bangladesh and Cash Incentives:

 

In
the country, 3.4 million tons potato surplus after meeting the local
consumption. In addition, insufficient cold storage facility for storage the potato.
The capacity of existing 400 cold storage are 5 million tons out of 10.4 million tons country production (bdnews24.com. 10 February 2014). So potato
export is essential for farmers and around 1000000 farmers engaged in potato
cultivation. In respect of
quality, taste and price, Bangladesh potato are good competitive than other
Asia countries. Many countries are

interested to buy the potato from Bangladesh.
The main importing countries are UAE, Singapore, Malaysia, Sri Lanka, Saudi
Arabia, Oman, Vietnam, Philippine and Russia. Commerce Minister Tofail Ahmed
said the Russian government has shown an interest as their annual demand to
import 1 lakh ton potato from Bangladesh. Pakistan and India meet the Russia
demand earlier but now it banned due to high pest risks. Similarly, other
importing countries are also interested to import the potato from Bangladesh.

 

The potato export trend is increasing year to year
mentioned in figure-2. In Bangladesh, exports crossed the 70000
tons mark for the first time in the fiscal 2014-15, rising threefold from only
53982 tons in the previous year, according to the Department of Agricultural
Extension (DAE). This is a milestone. We want to perform better in the days to
come. Potato is one of the main commercial crops grown all over the country.

The
reasons behind the rising of
exportation of potato (DAE-2015) since low prices in the

Figure-2:
Potato exporting trend respectively in Bangladesh. Source: FAOSTAT 2005.

 

domestic
market. The exporting companies are able claim 20 percent cash incentive as
government exporting support for encouraging to increase the potato export. The
increase potato export will effect to 1000000 farmers and earn the foreign
currency. 

 

11.4. Potato for
Industrial use

 

In
Bangladesh, now started to produce the processed varieties like Lady Rosetta, Courage,
Asterix, Atlas and Atlantic which contain high dry matter around 25% but
cardinal and diamond contain 20%. Three flakes manufacturing companies and one
starch manufacturing companies in Bangladesh produce the flakes and starch from
those varieties of potato and export to Europe and other countries. Nationally
and internationally increase demand of value added products like potato chips,
French fries, starch and ­flakes.  The
flakes are used for preparing varied products including mashed potato, pasta,
potato crackers and starch use in food processing, adhesive and textile sector. The four potato processing manufacturing
companies export the finished products equal 20000 tones potato. 

 

11.5. Analyze the
Countries and Identify the International Markets

 

Selection
for international market for potato export is important. We know some countries
interested to export the Bangladeshi potato but less aware of their annual
requirement and their expected variety. Bangladesh Government can help to take
the initiatives to find out the international market country. Our competitor
countries are India, China and Pakistan so we should progress based on analyze
the competitor countries behavior and performance. We have experience to export
the potato in the following countries so we can in-depth analyze their demand
for increasing the export volume for the countries. 

 

Table-3: Country wise potato export from Bangladesh from 2008-09 to
2013-14 (Value US$)

Sl.
#

Existing
status

Find
out the Country Wise required demand from Bangladesh for enhancing the potato
export

Potato
Export Country

Exporting
time 2008 to 2014

Value in USD

1.      
 

UAE

5
times

3218978

 

2.      
 

Belgium

1
time

5156

 

3.      
 

Brunei Darusalam

4
time

129527

 

4.      
 

Bahrain

4
times

283521?

 

5.      
 

Canada

2
times

3100?

 

6.      
 

Saint Barthelme

1
time

6821

 

7.      
 

China

1
time

6160

 

8.      
 

Cote d’ivoire

1
time

15495

 

9.      
 

Georgia

1time

3025

 

10.  
 

France

1
time

2008

 

11.  
 

UK

2
time

17991

 

12.  
 

Greece

1
time

9128

 

13.  
 

Hong Kong

2
times

734?

 

14.  
 

Indonesia

4
times

2328309

 

15.  
 

Japan

1
times

64551

 

16.  
 

Italy

3
times

63044?

 

17.  
 

Cambodia

2
times

79458

 

18.  
 

Kuwait

4
times

865206

 

19.  
 

Srilanka

4
times

9811686

 

20.  
 

Myanmar

4
times

111425

 

21.  
 

Maldives

2
times

74773

 

22.  
 

Malaysia

5
times

17460145

 

23.  
 

Netherlands

1
times

11918246

 

24.  
 

Nepal

1
times

2313

 

25.  
 

Oman

4
times

39783

 

26.  
 

Pakistan

3
times

44823?

 

27.  
 

Poland

1
times

9529

 

28.  
 

Qatar

2
times

321214

 

29.  
 

Russian

4
times

9209269?

 

30.  
 

Saudi Arab

5
times

1448140

 

31.  
 

Singapore

6
times

10826959?

 

32.  
 

Senegal

1
times

87245

 

33.  
 

Thailand

1
times

17126

 

34.  
 

Suriname

1
times

7447?

 

35.  
 

Turki

1
times

6424

 

36.  
 

Togo

1
times

64731

 

37.  
 

US

1
times

1301

 

38.  
 

Vietnam

5
times

1191010?

 

Total

72831925

 

Source: Export Promotion Bureau, 2014

 

11.6. Different barriers in entire potato Value Chain

 

There
were many barriers were faced by the farmers, exporters and other actors in the
entire potato value chain. Different levels barriers are given below in terms
of potato available appropriate potato variety, production, domestic and export
market.

 

11.6.1. Farmers/producer level barriers

 

The potato producers were facing various problems which are
broadly classified into production problems and marketing problems. Some of the
production problems were inadequate capital, diseases and pest attacks,
shortage of good quality seed, lack of availability of adequate inputs and high
cost of inputs. Marketing problems were related to transport cost, lower price
of potato, shortage of marketing facilities and high cold storage charge.
Sometime farmers faced the syndicate problem in a way that the potato value
chain actors are small  number but they
were well organized whereas the farmers were scattered but in large number. The
value chain actors always dominated the marketing system and they were in better
position in setting the prices of potato. As a result most of the producers
were compelled to sell their potato at a lower price.

 

11.6.2. Export companies level barriers

 

International
demand base all type of potato varieties are not available in Bangladesh. The
foreign countries interested to provide the demand based variety seed for
production in Bangladesh and they also interested to import of those potato
after harvesting. But Bangladesh policy do not permit of those foreign
countries offer and policy permits that varieties can grow first in research
institute at least 3 years then its can grow in farmers level said Belayet
Hossain, MD of Global Agro 2016. 

 

Potato is
a perishable vegetable. It would rot or sprouting during shipped under regular
temperature if it doesn’t reach in the market timely, said Jasim Uddin,
Chairman, Bangladesh Cold Storage Association. Shipping services are inadequate
and underdeveloped and expensive so that increase the potato price an in
competitive level. The Bangladesh’s ports provide services that cannot meet
internationally so lack of marketing services for exporters companies.
Exporters have no also proper market links with foreign importers and less
aware of their markets. In the same time, exporters are often do not get
payments on time from the agents of the importing countries. The Bangladesh
exporters prefer to maintain the local connections for doing business rather
than assessing the international demand.

11.6.3. Potato shipping level barriers

 

The high
moisture content and perishability of potato expensive to transport. In
Bangladesh, potatoes are harvested end of winter and it market during the hot
summer month. Transportation cost in Bangladesh exceed than production cost.
The spoilage also discourage the international market particularly in
development countries including Bangladesh where temperature are high, cold
storage and shipping facility are limited and coordination of chain transport
like truck, rail and ocean shipping often is difficult.

 

11.6.4. Potato Export Company Capacity:

 

Many private sector export companies in Bangladesh are
Agriconcern Ltd., Global Dasani Food & Beverage Ltd., Shahan Trade International, Fatema Trade International, Nizam foods trading, Global Agro, BRAC, PRAN
Co. Ltd are exporting the potato in different countries including Singapore,
Malaysia, Sri Lanka, UAE, Saudi Arabia, Oman, Vietnam, Philippine, Russia etc.
They faced the different problems such as unknown market, proper dealings with
international buyers, payment system, lack of coordination with respective
export country Bangladesh’s Embassy, shipping arrangement etc. The mentioned companies,
some are newly started the exporting of potato like PRAN Co. Ltd and their
capacity not up to the mark. All companies have problem so need their capacity
building and also need support for duty free export and easy export policy from
government.

 

11.7. Government support and Incentives

 

The Bangladesh government announced 20%
cash incentive for Exporting Companies for encourage the potato export. The
incentives can claim after exporting the potato by showing the invoice of
international market. The cash incentive was 20% in 2016 but it was 10% in 2017
up to October as a result decline the export trend in 2017. The government incentive
again announced 20% from November 2017 but exporting time passed to export as a
result huge potato unsold in 2017 and by this time new potato came in the market.  In 2017, Farmers, Export companies, potato
seed companies and cold storage huge losses in potato sector due to low export
the potato.

 

Significance of the Study

 

The total potato production in 10.4
million tones and total rice production in 34.8 million tones in Bangladesh
which meet the food security of country population. Rice meet the domestic
consumption but potato can exports 3.4 million tones after meeting the local
consumption. Through this study will find out the different stakeholders levels
barriers, scope and prospect for export the potato and determine the local
consumption.

 

Potato intakes as a table potato and as an
industrial processed form like chips, French fries, flakes etc. The study will
help to identify the appropriate variety for table potato and processed potato
as an international markets demand and availability of those varieties. 

 

Around 20
lac farmers engaged in potato cultivation in Bangladesh but they do not get
proper price of their produced potato. Through this study will identify the
international market as a result 20 lac farmers will gain direct or indirectly benefit
after meeting the local consumption. 

 

In 2017, about
30 lac ton potato unsold in cold storage in December but new potato by this
time in market so huge farmers and cold storage losses their profit and they
gain shocked (Cold storage association 2017). The study will find out the
mechanism to identify the international markets from different countries for
export the potato as a result the situation will improve.

 

12. LIMITATION OF THE STUDY

 

There are some limitation in the study which
mentioned below in details-

 

Political unrest: During the data collection has possibility
to political unrest in the country. In this case my hamper the data collection.

 

Stakeholders including farmers do not keep regular
book keeping: The
stakeholders like farmers, traders, shipping agent and exporting company do not
maintain the previous information and data so in that case may raise error of
the study findings.

 

Lack of budget: The proposed data are planned to collect from
different locations and different levels of stakeholders so arise the fund crisis.

Stakeholders time shortage for sharing information: The study has planned to collect data from
different levels of stakeholders so may raise limitation to provide enough time
from interview to interviewer. 

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