With regards to potato production and export, Pakistan ranks among the top countries in the world as it has the required combination of soil and climate for commercial potato farming. Along with an increase in domestic consumption, the global demand for Pakistani potatoes has also risen over the years.
With the gain of opportunity come challenges, as the price volatility in the market, the requirements of adequate storage, and restrictions on exports determine how successful this industry will be. The ensuing discussion will analyze the scope and potential of developing this burgeoning industry within the country region along with its challenges.
In Pakistan, the potato is an important cash crop, and it is also produced extensively at the household level for cooking. The country is one of the largest producers of potatoes, which aids in meeting global food requirements as well as supplying to local markets.
Demand Potatoes are highly consumed in Pakistan, India, China and even the Middle East, ensuring continuous demand. Moreover, the processed and fast food industry requires good-quality potatoes for the preparation of french fries, chips and other snacks, thereby increasing the demand further.
The Pakistan climate is moderate, and along with the fertile soil, it is perfect for the cultivation of potatoes. The nation has three primary seasons for growing potatoes, which are autumn, spring, and summer, so that production can happen during the entire year.
Potato exports from the country have skyrocketed in recent years, causing the country to generate millions of dollars in revenue each year. Cold storage alongside logistics infrastructure would serve exporters well as they target regions with high demand, such as Russia, the UAE, Malaysia, and Sri Lanka.
There is a great deal of investment potential in food processing plants that would make the United States less reliant on potato chip imports. Processed potato products like potato chips, frozen fries, and dehydrated potato flakes are also sold in great international quantity.
When measuring return on crops, potatoes cultivate in a shorter period of 90–120 days and have a higher revenue yield per hectare. Using recent cultivation practices has been a way to further improve the yield and quality of crops.
The backbone of the industry will always remain potato farming. Various modern farming approaches like organic farming, tun farming, and drip irrigation have become staples for Pakistani farmers to raise their farming output levels.
2. Storage of Potatoes and their Cold Chain Logistics
Farmers, along with traders, receive elevated potato selling prices during times of peak market demand through their access to cold storage services. Also, investment in storage solutions can help reduce loss due to improper harvesting techniques.
Manufactured potato products such as potato chips, fries, and mashed potatoes are increasing in demand in Pakistan. Local manufacturers can build processing plants to serve the local and international markets.
Pakistan has an established market for potato exports to the Gulf, Russia, and Southeast Asia. Firms with good supply chains and international standards can benefit from exporting potatoes.
Traders sell potatoes in Sabzi Mandis, retail stores, and supermarkets, while other traders buy straight from the farmers. Distribution is very lucrative in this business as traders distribute to other retailers, hotels, and restaurants.
While the potato industry is very profitable, it still suffers many obstacles in Pakistan.
Farm gate market potato prices have been very unstable over the years. Farmers harvest at specific intervals, but there is a lot of oversupply, which causes prices to fall. During off-harvest seasons, these prices rise again. Cold storage services can ameliorate these conditions.
Farmers have no access to cold storage spaces, especially after December. This leads to a lot of waste and some financial losses. More investment in modern storage spaces is important these days to protect against financial losses.
Pakistani potatoes can only be exported if they comply with international quality standards. There is a loss of marketable value due to poor handling, bad packaging, and no standardization.
Potato crops laid out throughout the region are vulnerable to plant pests and diseases such as late blight and bacterial wilt. These factors put yields at risk of being significantly lower than expected. Farmers require better pesticides along with disease-resistant seeds.
The higher pricing of fertilizers and pesticides coupled with labor put a strain on profits. For growth and profit, farmers and firms need to come up with well-structured, financially efficient methods.
If you want to start a potato business, here’s how you can do it in Pakistan:
Build a Value Proposition: Position your brand of potatoes in the international and national markets.
Final Takeaway
Investors, farmers, and exporters seeking new business opportunities will find the potato sector in Pakistan highly profitable. It has high export potential, processing, and value addition. It is a very profitable business and investment sector in Pakistan.
The potato business in Pakistan is very lucrative, and with the aid of new farming technologies, cold storage, and more value-added products, businesses can prosper. The potato sector in Pakistan provides numerous contracting prospects, whether you plan to raise potatoes, set up a processing plant, or create an export business.
