Pak refusal to buy Indian potatoes hit Punjab traders hard

The Pakistan government's sudden decision to ban the import of potatoes from India has hit the Amritsar business community pretty badly. Large stocks are now lying in cold storage.

"The decision is rather strange as there is a great shortage of potatoes there," said Indo-Pak Traders' Association chairman Prakash Arora, "The price there are as high as Rs 10 per kg and is expected to rise further."

The decision, Arora continued, spells a bad time for both countries's commerce. For India, it would mean the loss of over Rs 30 million in foreign exchange as 50,000 tonnes of potatoes are exported to Pakistan annually.

"The main buyer last year was the government-owned utility store in Pakistan. The prices had come down significantly following imports from India," he added.

Quoting Pak potato traders, Arora said so far Pakistan has not approached any other country regarding imports.

The exporters alleged that Pak Premier Nawaz Sharief's decision was meant to benefit a few rich vegetable growers of Punjab (Pakistan), who are either his relatives or supporters.

Arora said his association would bring the problem to the Union commerce ministry's notice.

UNI