ZAHEER ABBASI

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet chaired by the Finance Minister Ishaq Dar has reportedly allowed extension in duty-free import of potato from India till November 15 instead of 31 December 2014 as requested by Ministry of National Food Security and Research (MNFSR).

Sources said that the Ministry of Industries, Commerce and Investment Department of Punjab government had requested the MNFSR to send to the ECC their proposal to extend waiver in the regulatory duty on import of 200,000 metric tons of potato as well 100,000 metric tons of additional import as a remedial measure due to potato shortage in the country.

Punjab further requested that in view of the prevailing situation it is imperative that the above duty free import of potato from India remains operative for a longer period with an enhanced quantity to keep the price at a fair level in the province. Punjab has requested MNFSR to place the matter before the ECC for consideration and a subsequent amendment to notification No SRO 808 (1)/2009 dated 19.09.2009 thereby enhancing the quantity of import of potato from 200,000 metric tons to 300,000 metric tons along with permission to import this quantity till the sanctioned quantity arrives in the country.

The proposal was advanced to the MNSFR due to a 24 percent reduced production of potato in the province as compared to production figures of 2012-13. This dispensation has helped arrest the increasing trend in the price of potato as imported potato is available in the markets of the province at an average rate of Rs. 40 per kg whereas the price of fresh local potato from Khyber Pakhtunkhwa has soared to Rs. 60 per kg.

Punjab produces 96 per cent of the country’s total potato produce and due to a shortage of potato in the province the price of this commodity would remain under tremendous pressure till the arrival of new crop.

The ECC was informed that 61200 metric tons of this item have been imported till end of June 2014. The price of potato in various markets depending on its variety varied from Rs. 40 to 60 per kg. It is still five months away, and its price is quite high. In case the import is not allowed, prices will go higher.