SARBHANG

Despite the relatively poor mandarin yield this year, Bhutanese exporters are optimistic of good business this season.

More than 100 truckloads of mandarin from Phuentsholing, Samdrup Jongkhar, Gelephu and Nganglam have been exported to Bangladesh since November 15.

Lungpa Tandin, the Secretary General of the Bhutan Exporters Association (BEA), said that, although the yield is poorer this season, it would not have major impact on the business. “Looking at the trend over the last five years, I hope the export would reach at least 20,000 mt this year.”

The present market price fluctuates between 15 and 17 US$, according to BEA.

Exporters say one of the reasons for the high market price was due to the poorer yield this season. The floor prices were fixed between US$ 7 and US$ 9 this season owing to the impact of the global economic crisis.

Yeshey, a supplier from Jabana, who has been in the business for the last 10 years, has supplied some 60 DCM truckloads of mandarin from Tsirang. She said that in the last season, she had a turnover of Nu 600,000. “This season, although the yield is a little poorer, I am expecting to earn around Nu 100, 000,” she said. A supplier of Peling Export said the yield this year had dwindled by 15 to 20 percent. But he said business would be good as the market price had increased owing to poor yields.

Langa Dorji, owner of Pin Nga Exports, has so far exported the highest number of truckloads of mandarin to Bangladesh. “Usually I used to send about two truckloads before the Muslim festival of Eid but this year I have already sent 10 trucks.” According to him, in December, the demand for mandarin was high due to which prices skyrocket but by January, the price drops.

Lungpa said that till date, some 20 new importers from Bangladesh have registered with the association. “Even after Eid, I am expecting the same number of importers to register with us,” he said.

Exploring a new strategy

This year, Langa Dorji planned a new strategy to enhance collective benefit for all parties involved in the trade.

He has declared his market rate between US$ 13 and US$ 15 and intends to keep the rates consistent throughout the season. He said he would also not take any commission from suppliers.

Langa said there has been a trend where petty importers from India bought mandarin from farmers at low rates and exported it from Bhutan at higher rates in the name of Bhutanese exporters.

He said the petty Indian importers bought small-sized mandarin at Nu 30 to Nu 35 a pon (80 numbers) and big-sized mandarin at Nu 80 to Nu 90 a pon. And to add to that, he said they also took commission.

“I pay farmers Nu 100 to Nu 200 a pon, and I have decided not to take commissions,” said Langa, adding that in doing so, it would be a win-win situation for all parties involved.

Such a practice, Langa said, would be good for long-term business prospects and would ensure smooth supply as keeping the price consistent would attract more importers and would benefit the farmers as well.

According to Langa, paying the farmers better would also help curb fronting as it would discourage them from selling it to petty Indian importers at a low price.

This season, the regional department of employment has also tied up with the exporters in order to employ youth at the mandarin depots.

According to the BEA, some 36 unemployed youth have already started working at the depots.

By Pushkar Chhetri in Bhutan Observer

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