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Mandarin export set to begin

2 November 2009

Owing to the global recession that has hit Bangladesh, Bhutanese exporters in Phuentsholing have decided to keep the floor price of mandarin the same as last season.

The floor price will be seven US$ for a box of kil (small size) and nine US$ for a box of mil (big size).

In a meeting last week, Bhutanese exporters said the floor price this season should not be increased as the Bangladeshi economy has been hit hard by the global recession.

The value of the Taka (Bangladeshi currency) against one US$ is 69.06. “If we increase the floor price, it will discourage petty importers as they would not be able to afford it,” said P Dodo of Kuenphen exports.

Lungpa Tandin, Secretary General of Bhutan Exporters Association (BEA), said he was worried since Bangladesh is still recovering from the global recession.

He said if Bangladesh is running short of hard currency reserves, the business will not be as smooth as previous seasons as export is done only in US$. “If that happens, we might have to look for alternatives in India,” he said.

However, according to the Financial Express newspaper, the foreign currency reserve maintained by Bangladesh Bank has recently crossed US$ 7.0 billion. It is the highest recorded level since the independence of the country, according to the paper.

Mandarin export for this season will officially begin from November 15.

The harvest this season Tshering Dorji, one of the exporters, said the harvest this year was not as good as last year due to some plant diseases. “Last year I exported 70 truckloads but this year I think I can export only 50 truckloads,” he said.

K B Gurung, a representative of the Daga Shingdrey Tshogpa (DST), said DST could not participate in the previous season because they had done poor business in 2006 and 2007 due to a lack of funding but this year they hope to do better.

“This year we have committed to supply 100 truckloads, but due to delay in funds, the supply might decrease by 30 percent,” said K B, adding that the yield this year was good. At present, DST has 101 members from Dagana. P Dodo of Kuenphen Exports said this year the yield had gone down. “I made a preliminary tour and found that the yield in Gelephu and Sarpang had gone down by 40 percent.”

He said in Kengkhar, Darla, Dagana and Pemagatshel the yield was poor. “In Dagana, I heard that it has gone down by 20 to 25 percent but in Tsirang it is good.” Last year, P Dodo had supplied 110 to 115 truckloads.

New trade route to ease export The new export route via Dawki in Shillong, India, to Tamabil in Bangladesh will shorten the distance by 100 km for exporters in the eastern Bhutan.

Today, the distance from Samdrup Jongkhar to Burimari is around 380 km. “For the exporters from eastern Bhutan it will be an advantage as it will reduce the transportation cost,” said Lungpa Tandin. According to BEA, the Prime Minister of Bangladesh will be visiting Bhutan on November 6 during which a bilateral trade agreement will be signed with Bhutan. Following this, the new trade route in Tamabil and Dawki is expected to be opened.

Wangdi of Wangdi Exports said there were problems in exporting mandarin from Samdrup Jongkhar to Bangladesh with escort within 24 hours of packaging He said the consignment is dispatched at 8:00 am from Samdrup Jongkhar and by the time it reaches Bangladesh, the border is closed and the consignment is halted. Wangdi said the opening of the new route would benefit exporters from Samdrup Jongkhar, Nganglam, Gelephu and Panbang.

Technology for farmers According to Sonam Norbu of Agriculture Marketing Services of the Ministry of Agriculture, Integrated Voice Response (IVR), which will give details regarding the market trends, will be introduced for farmers.

The IVR is a system whereby farmers can receive voice messages in Dzongkha, Tshangla, Lhotshamkha and English explaining the market situations. This, according to AMS official, is the most modern system in the world and will connect 80 percent of the country and help in keeping farmers well-informed about the trade.

Dispatch to Bangladesh since 2001

Year Quantity in MT Amount in US$
2001 14544.38 3232084.44
2002 10960.11 2435580.00
2003 18359.43 4079873.33
2004 15968.87 3548637.78
2005 20613.26 5344178.52
2006 13142.75 3407379.63
2007 20426.87 5295855.19
2008 23198.076 6873504.00

Dispatch to India since 2001

Year Quantity in MT Amount in US$
2001 320.052 2726368.89
2002 3237.456 28177857.78
2003 1375.157 12223617.78
2004 2608.794 23189280.00
2005 2670.423 22748047.78
2006 5442.08 45955342.22
2007 3518.235 37788450.00
2008 4296.471 60468851.11

By Pushkar Chhetri

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Posted by Bhutan Observer · Filed Under Economy, News 

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