Greetings and welcome to our detailed guide about how to export potatoes from India. This blog aims to provide you with valuable information about the profitable potato trading industry. We will discuss the essential techniques, tactics, and knowledge needed to succeed in the global potato market. Our guide will cover everything from selecting high-quality potatoes to locating potential overseas buyers and managing the shipping process. We are here to assist you every step of the way, so let's begin this thrilling expedition to explore how you can leverage India's fresh potato export capabilities and expand your business worldwide.
Opportunity in fresh Potato Export from India and Market Size
India stands as a prominent player in the global fresh potato export landscape, with its industry experiencing rapid growth. In 2022, the nation made significant strides by exporting a staggering 2.5 million metric tons of potatoes, boasting a market value of $1 billion. This achievement solidified potatoes as a pivotal food crop, ranking third globally in terms of human consumption, following rice and wheat. It's worth noting that this versatile crop boasts over 4000 distinct edible varieties, with many originating from South America.
The potato export sector displayed its resilience by registering commendable 4.78% growth between 2020 and 2021, as evidenced by potato export data. This consistent upward trajectory paints a promising picture for the future of potato exports from India.
As India's potato exports thrive, there are chances to collaborate with countries like Malaysia. Indian potatoes, with their diverse varieties and strong growth, are valuable globally. With the potato sector's resilience and continual growth, partnering with Malaysia can boost the global reach of Indian potatoes.
According to recent reports, the potato market is poised for continued expansion, with a projected worth of USD 111,825.01 million by 2024 and an estimated USD 132,813.04 million by 2028. This impressive growth trajectory is expected to maintain a steady course, with a compound annual growth rate (CAGR) of 3.50% over the forecast period (2020–2028). These figures underscore the immense potential and profitability that await those looking to venture into the thriving potato export business from India.
Government Incentives and Perks
Exporting potatoes is not just about shipping out this versatile vegetable; it comes with a range of government-backed advantages designed to enhance your profitability.
- Duty Drawback:
Potato exports benefit from a favorable duty drawback of 0.15%, providing a direct boost to your earnings without added complexities. This incentive rewards your export efforts with a significant financial advantage. - Remission of Duties and Taxes on Exports (RODTEP):
The Remission of Duties and Taxes on Exported Products (RODTEP) scheme is a game-changer for potato exporters. It offers a substantial advantage, equivalent to 4% of your export value. For instance, if you're exporting potatoes valued at Rs. 10,00,000, this translates to a benefit of Rs. 40,000, directly impacting your bottom line. - Interest Equalization Scheme on Pre & Post Shipment Export Credit:
Please note that the "Interest Equalization Scheme on Pre- and Post-Shipment Export Credit" is not applicable for merchant exporters, but the other incentives mentioned above can significantly enhance the profitability of your potato export business. - Transport and Marketing Assistance Benefits:
The "Transport and Marketing Assistance" (TMA) scheme extends its supportive hand to specific agricultural products, including potatoes. It aims to provide assistance for international shipping and marketing aspects of agricultural commodities. By addressing challenges related to higher transportation costs associated with exporting designated agricultural products like potatoes, the TMA scheme helps boost competitiveness. Moreover, it strives to enhance the reputation of Indian agricultural products in international markets, where Indian potatoes are valued and sought after.
These government incentives make potato exports a lucrative business opportunity, and it's essential to take full advantage of them to maximize your profits.
How to Source Potatoes for Exports
If you're new to potato exports, don't worry. There are many opportunities to explore. Let's check out the main places where people grow and want to buy potatoes.
Top 10 States That Produce Export-Quality Potatoes
| 2021-2022 | |||
|---|---|---|---|
| Sr No. | State | Production (Tonnes) | Share (%) |
| 1 | Uttar Pradesh | 15,892.00 | 29.65 |
| 2 | West Bengal | 12,600.00 | 23.51 |
| 3 | Bihar | 9,125.80 | 17.02 |
| 4 | Gujarat | 3,780.00 | 7.05 |
| 5 | Madhya Pradesh | 3,582.00 | 6.68 |
| 6 | Punjab | 2,850.00 | 5.32 |
| 7 | Harayana | 765.90 | 1.43 |
| 8 | Assam | 761.84 | 1.43 |
| 9 | Jharkhand | 733.77 | 1.37 |
| 10 | Chattisgarh | 623.65 | 1.1 |
Procurement Options: Farmers, Potato Markets, and Vendor
When you want to find potatoes, you can choose from different places:
- Farmers:You can directly buy potatoes from farmers who grow them. This way, you can access fresh produce and establish a direct connection with the growers.
- Potato Markets: Potato markets, often known as local marketplaces or "Mandis," provide convenience by allowing you to compare prices and quality from multiple sellers all in one place.
- Potato Vendors: Potato vendors or wholesalers specialize in selling potatoes. They are capable of supplying large quantities, making them a suitable option for bulk purchases or maintaining a consistent supply.
Your decision will hinge on your specific needs, quality requirements, and negotiation abilities. Many businesses choose to combine these options to ensure a dependable and cost-effective source of potatoes for export.
Understanding Packaging for Potatoes
Appropriate packaging plays a vital role in preserving the freshness and quality of potatoes during transportation. Discover packaging materials, methods, and standards to guarantee that your potato exports reach their destination in excellent condition.
Corrugated Fibreboard Box: POTATOES Capacity : 10 Kg
| Specification | Minimum | Recommended |
|---|---|---|
| Material of Construction | Corrugated Fibre Board | Corrugated Fibre Board |
| External Dimensions (mm) | 400 x 300 x 180 | 400 x 300 x 180 |
| Style of Box | RSC - 0201 | Telescopic - 0312 |
| No. of Plies | 5.0 | Lid - 3 Tray - 3 |
| Type of Flutes | B / B (Narrow) | Lid B (Narrow) Tray B / B (Narrow) |
| Direction of Flutes | Vertical | Vertical |
| Grammage (g/m²) | 250 / 120 / 120 / 120 | Lid : 250/150/150 Tray : 250/120/120/ 120/120 |
| Burst Factor of Paper (Kraft) (Minimum) | 20.0 | 20.0 |
| Bursting Strength of Board (Kg/cm²) (Minimum) | 14.0 | Lid: 14.0 Tray : 14.0 |
| No. of Pieces per Box | Not more than two | Not more than two |
| Manufacturers Joint | By gluing | By gluing |
| Compression Strength of Box (Kgf) (Minimum) | 450 | 450 |
| COBB (30 Minutes)*** (g/m²) (Maximum) | 60 | 60 |
| No. of Ventilation Holes | 16.0 | 16.0 |
| Diameter (mm) and Position of Holes | 20 | 20 |
| Two Sides Each | 3 | 3 |
| Two Ends Each | 1 | 1 |
| Top & Bottom Each | 4 | 4 |
| Edge Crush (Kgf) (Minimum) | 38.00 | 50.00 |
Please note that the dimensions of the box are adaptable to Euro pallets, but we can also accommodate other dimensions or box styles to meet the specific requirements of importers.
The mentioned grammage is for reference purposes, and you can use alternative grammage levels that offer equivalent strength and performance.
For ventilation, the diameter and number of holes should be 20mm and 16, respectively. However, additional ventilation can be incorporated as needed, depending on the chosen box style.
Jute Bag POTATOES (25 kg)
| Specification | Value | Tolerance |
|---|---|---|
| Type of Fabric | Hessian | N/A |
| Grammage (g/m² | 270 | +2 / -1 |
| Ends/dm (or porter) | 47 | +2 / -1 |
| Picks/dm (or shots per inch) | 47 | +2 / -1 |
| Breaking Load (kgf) | ||
| Breaking Load (kgf) | ||
| Warpway | 110 | N/A |
| - Weftway | 95 | N/A |
| Seam Strength (kgf) | ||
| Seam Strength (kgf) | ||
| - Bottom Seam | 34+/-1 | |
| - Side Seam | 36+/-1 | |
| -Stitching | Shall be 10 mm from the edge. The number of stitches per 10 cm shall be between 9 & 11 | N/A |
Please note that in cases where tolerances are not explicitly specified, it is essential to regard the specified value as the minimum acceptable standard.
Tips to Find the Best Supplier for Potato Exports
When seeking reliable potato suppliers for your export business, keep this essential advice in mind: prioritize quality and dependability. While you have various sourcing options, including local markets (Mandis) with their diverse selections, farmers who provide fresh potatoes, or experienced traders with market knowledge, the key factor is the consistent quality of the potatoes and the reliability of the supplier. Ensure that your chosen supplier consistently delivers high-quality potatoes and maintains a reputation for trustworthiness. Additionally, consider collaborating with multiple suppliers to guarantee a consistent supply of top-grade potatoes for your export endeavors.
Setting Up Logistics for Potato Exports
Achieving successful potato exports requires a well-structured logistics system to ensure the freshness and quality of your potatoes during transit. Here's how to establish a robust logistics framework for your potato export venture:
Selecting a Reliable Freight Forwarder
Choosing the right freight forwarder is pivotal when shipping perishable products like potatoes. Here's a straightforward guide to help you find the perfect partner:
- Expertise in Perishables:Look for a forwarder with a track record of handling delicate products like vegetables. Their expertise is crucial to maintaining the freshness and condition of your potatoes throughout the shipping process.
- Efficient Team:Opt for a forwarder equipped with a capable team committed to ensuring on-time deliveries and seamless logistics for your potato shipments.
- Customer-Centric Approach:Prioritize a forwarder that places your requirements at the forefront. They should provide valuable guidance and assist you in navigating the intricacies of potato exports.
- Prompt Quotes and Exceptional Service:Choose a forwarder that offers quick, accurate pricing and delivers top-quality service. Your potatoes will receive the care they deserve.
- Reputable Online Presence:A forwarder with positive online feedback is a dependable and credible choice.
One prominent player in this field is Potato Logistics. With our specialization in perishable logistics, a proficient team, swift pricing solutions, and a track record of satisfied customers, we're poised to elevate your potato export business to new heights.
Essential Documents for Potato Export
With your supply and logistics in place, it's time to establish your company for potato exports from India. Commencing an export business entails several fundamental steps. It is crucial to register your company and ensure compliance with legal prerequisites. These initial actions serve as the cornerstone of your potato export venture.
- Business Registration Start by registering your export business with the appropriate government authorities. Choose a suitable business structure like an LLP, Pvt. Ltd., proprietorship, or partnership based on your business plan.
- IEC (Import-Export Code): Obtain an Import-Export Code (IEC) from the Directorate General of Foreign Trade (DGFT). This 10-digit code is essential for all export transactions and helps customs authorities identify your export business.
- Tax Registration (if needed):Depending on your business structure and turnover, you may need to register for tax purposes. This could involve getting a Tax Identification Number (TIN) or enrolling in the Goods and Services Tax (GST) system.
- Trade License (if applicable): Check with local authorities to see if your export activities require a trade license, as this can vary based on location and specific export operations.
- Export License:You may need an export license or registration with the relevant government authority, such as the Directorate General of Foreign Trade (DGFT) in India.
- Quality Control and Inspection Certificates: Ensure that the potatoes meet the quality and safety standards of the destination country. Certificates from government-approved laboratories or agencies may be required.
- Phytosanitary Certificate: A phytosanitary certificate issued by the Plant Quarantine Authority verifies that the potatoes are free from pests and diseases. This document is usually a crucial requirement for agricultural exports.
- APEDA Registration: The Agricultural and Processed Food Products Export Development Authority (APEDA) registration is vital for exporting agricultural products, including potatoes. Here's how to register with APEDA:
a. Visit the APEDA website. Create an account and fill out the online registration form.
b. Submit the required documents, such as your IEC certificate, PAN card, and bank certificate.
c. Pay the registration fee.
d. Once your application is approved, you will receive an APEDA registration certificate. - Certificate of Origin: A certificate of origin, issued by a recognized chamber of commerce or export promotion council, provides information about the origin of the potatoes.
- Export Invoice: Prepare a detailed export invoice that includes information about the quantity, value, and description of the potatoes, along with the terms of sale, payment, and shipping details.
- Packaging List: A detailed packing list specifies the type of packaging used (e.g., cartons, sacks) and the quantity of potatoes in each package.
- Bill of Lading: A bill of lading is a crucial shipping document issued by the shipping company or freight forwarder. It contains information about the shipment, including the consignee, shipper, description of goods, and shipping route.
- Fumigation Certificate: A fumigation certificate is essential for exporting agricultural products like potatoes. It confirms that the potatoes have been treated to eliminate pests and diseases.
Finding International Buyers for Potato
Expanding your export business involves identifying international buyers for your potato exports. This step opens up new markets and avenues for growth in your potato export endeavors.
Top 10 Importing Countries for Potato from India
Product: Potatoes Other Than Seed, Fresh/Chilled
| 2020-21 | 2021-22 | 2022-23 | ||||
|---|---|---|---|---|---|---|
| Country | Qty (MT) | Rs. Lacs | Qty (MT) | Rs. Lacs | Qty (MT) | Rs. Lacs |
| Nepal | 218,675.76 | 30,620.87 | 257,904.36 | 29,197.30 | 294,733.00 | 35,451.33 |
| Oman | 22,070.40 | 4,559.68 | 30,733.93 | 5,781.84 | 39,107.58 | 9,321.35 |
| Saudi Arabia | 15,710.00 | 3,306.31 | 13,340.00 | 2,607.08 | 34,040.50 | 8,451.21 |
| Indonesia | 11,789.00 | 2,844.29 | 30,896.00 | 6,399.27 | 26,998.00 | 6,760.82 |
| Malaysia | 13,898.50 | 3,188.40 | 18,193.34 | 3,759.14 | 20,762.46 | 4,743.87 |
| Vietnam Soc Rep | 2,837.00 | 626.08 | 3,434.00 | 760.68 | 15,490.60 | 3,878.43 |
| UAE | 6,600.58 | 1,492.00 | 9,819.22 | 1,899.73 | 9,383.17 | 2,224.86 |
| Maldives | 4,435.00 | 1,623.08 | 5,078.91 | 1,438.91 | 5,711.41 | 1,963.45 |
| Kuwait | 7,850.00 | 1,746.97 | 8,496.45 | 1,767.83 | 8,377.77 | 1,930.32 |
| Sri Lanka | 8,459.03 | 1,975.37 | 11,822.40 | 3,024.82 | 6,059.69 | 1,308.5 |
How to Find International Buyers for Potato Exports
In the quest to discover international buyers for your potato export venture, a well-planned approach is essential. This entails market research, network building, participation in trade exhibitions, and leveraging online platforms. The key to success lies in identifying potential buyers who align with your product quality and standards.
Effective Strategies for Finding Buyers
Enhance your pursuit of potential buyers through the implementation of effective marketing and promotional strategies. Here are three crucial steps to consider:
- Invest in SEO:Boost your global online visibility by investing in search engine optimization (SEO) techniques.
- Establish a Strong Brand:Focus on building a solid brand identity right from the outset and invest in social media marketing to create a robust online presence.
- Utilize CHAs (Customs House Agents):Customs House Agents often possess extensive buyer networks. Don't hesitate to seek their assistance in connecting with potential buyers.
Conclusion
The journey of exporting potatoes presents substantial opportunities to tap into global market demand. Armed with a comprehensive understanding of the advantages, sourcing tactics, logistics, and buyer connections, exporters can navigate this endeavor successfully.
Citrus Freight remains committed to providing dependable ocean freight services worldwide, tailored to meet the specific requirements of perishable exporters like yourself. Our extensive network, with over 100 fleet locations across India, underscores our commitment to supporting your potato export aspirations.
Moreover, our user-friendly app simplifies the process of connecting you with a diverse array of reputable potato suppliers. It streamlines the identification of suitable suppliers and the acquisition of competitive price quotations, facilitating the seamless sourcing of top-quality products for your export business.