Rivals join forces
5 December 2008
In Phuentsholing for the first time, orange exporters have decided to cooperate for this export season.
The 12 registered exporters have banded together to compete with their counterparts in Jaigaon. “We do not allow the Jaigaon traders to interfere in our business. That would completely ruin our business,” said Langa Dorji.
The exporters have appointed three officials to monitor any interference from Jaigaon orange sellers. “We can never compete with the Jaigaon traders. We would incur losses in several millions if we do not curb such illegal businessmen,” said the proprietor of Pinnga Exports.
“We have made an agreement among the exporters to cooperate for mutual benefit. The breach of agreement would lead to severe penalties and loss of their license,” said exporter Sangay Penjor. The number of exporters had dwindled from 32 in the past to 12. This is mostly attributed to losses suffered due to competition with Jaigaon.
An exporter, speaking anonymously, said he would report any Bhutanese exporters entering into partnership with Jaigaon businessmen. “Our Bhutanese businessmen lack cooperation but we will collapse if we do not cooperate among ourselves this year,” he said.
The exporters are also wary about the competition from Indian exporters to Bangladesh. Langa Dorji, a veteran exporter, said that the Bangladesh importers would also import oranges from India in the next month. “We would then face stiff competition from Indian exporters if our exports are not rushed up,” he said.
“The market is really good in this month and exports have to be rushed. The importers from Bangladesh have already arrived and we have only limited oranges this year,” said Sangay Penjor, an exporter.
According to the exporters the Royal Government provided every possible support to the exporters. This said this help is warranted because they bring in foreign currency, provide local employment and rural income.
“We expect the importers to pay us around US $ 10.50- 12.50 per box of oranges. The major contractors are able to bring in dollars worth Nu 10 million and the young exporters are able to bring in dollars worth Nu 0.5 million,” said the proprietor of Pinnga Exports.
The Department of Trade, The Royal Bhutan Police, Immigration Officials and three members from among the exporters have formed a team to curb fronting and other business fraud.
However, one of the exporters also said that his counterparts have already started breaching the agreements.
“Evidently, there are only five of us who are working honestly, based on the terms and conditions agreed upon. Some of them have already started a breach of contract by renting their license to different people. We really need to cooperate. Otherwise we will take the matter seriously,” he said.
Sangay Wangchuk
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Loading ...Zakar for Friday July 30 2010
20th Day of the 06th Month - Iron Male Tiger Year
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Well, as far as I see it, I feel it not fair to say that the Partnership with Jaigaon Exporters should be restricted. As long as one is paying for it and follows the right channel, there should be no restrictions.
But on the other hand, the concerned officials could hold a check and balance on Fronting; A foreign partner/investor should not be allowed to invest above certain percentage into the Bhutanese Market. That way, the money still remains within the country.
Also, either taxes can be raised for the non Bhutanese Exporters/investors or, taxes can be lowered for the Bhutanese exporters. Either way, the Bhutanese exporters stand a better chance against the Jaigaon Tycoons.
And not to forget, the Bhutanese Exporters can reconsider their Sales Strategies and explore some new methods.
It’s absurd to think that capital is everything in a business. Money can definately buy bussiness but certainly not profits. It’s brains, hardwork and perserverence that makes profits.
On the contrary, the blunt restriction or sudden withdrawel of partnership can bring a bad taste to the Indian Busines partners. Let’s understand, we have a long standing trade relation with Jaigaon and vice versa. It’s not just oranges or apples, we are talking about everything.
I would suggest the concerned authorities take a second look at this concern and take a more positive approach.
I am not an economist or an Indian.
Just my opinion.
Lobxang
NYC