How India’s Potato Import Decision Impacts the Agricultural Industry 2023
The Jalpaiguri district includes the little settlement of Chamurchi. The border with Bhutan is not far away.
On Monday, India approved the unrestricted importation of potatoes from Bhutan for one additional year till June 2024. Previously, it was permitted till June 30 of this year. Until June 30, 2024, potatoes may be imported unrestricted from Bhutan, according to a statement from the directorate general of foreign trade (DGFT).In 2022–2023, imports of chilled or fresh potatoes totalled USD 1.02 million. The DGFT said in a separate notice that 17,000 metric tonnes of fresh (green) areca nuts from Bhutan would also be permitted for import through LCS (land customs station) Chamurchi (INCHMB) without the requirement of a minimum import price (MIP).
The Jalpaiguri district includes the little settlement of Chamurchi. The border with Bhutan is not far away—location code INCHMB. Additionally, the directorate outlined a process for allocating quota for the export of broken rice based on humanitarian and food security concerns, based on requests from governments of other countries, in a trade notice.
In a significant move to strengthen bilateral trade ties, the Indian government has decided to permit potato imports from Bhutan without needing a license until June 2024. This decision reflects the growing economic cooperation between the two neighbouring nations and opens up new regional trade and commerce avenues.
The relaxation of licensing requirements is expected to boost potato imports from Bhutan, benefiting both the economies and fostering deeper diplomatic relations.
India and Bhutan share a unique and longstanding relationship based on mutual trust, cultural affinity, and economic cooperation. The two nations have maintained close ties for decades, with India serving as Bhutan’s largest trading partner and providing significant developmental assistance.
The agricultural industry has an important role to play. Both India and Bhutan and the decision to permit potato imports signify the recognition of the potential for increased collaboration in this domain. Bhutan, known for its high-quality potato cultivation, has sought expanded market access for its products. In contrast, with its vast population and growing demand for potatoes, India offers a lucrative agricultural goods market.
Benefits of Potato Imports:
- Diversification of potato varieties: Importing potatoes from Bhutan will introduce a broader range of potato varieties to the Indian market, providing consumers with more choices and potentially improving the overall quality.
- Economic opportunities: The relaxed licensing policy will encourage more traders and businesses to import potatoes from Bhutan. This will create new avenues for economic growth, generate employment opportunities, and boost revenue for both countries.
- Increased food security: With potatoes being a staple crop in both India and Bhutan, increased imports from Bhutan can contribute to enhanced food security in India, particularly during domestic supply fluctuations or shortages.
- Technological exchange: Importing potatoes from Bhutan can facilitate the exchange of agricultural technologies, best practices, and research between the two countries. This exchange can lead to mutual benefits, such as improved farming techniques and increased productivity for farmers in both nations.
- Strengthened bilateral ties: India is committed to deepening trade relations with its neighbouring country by allowing potato imports from Bhutan without a license. This move further strengthens the diplomatic and economic bonds between the two nations.
The deadline to apply for a licence to export broken rice to Senegal, Gambia, and Indonesia has been extended until July 6.”Any applicant will be blacklisted for the following two financial years and action under the relevant provisions of FT (D&R Act), 1992, as amended, shall be taken against the applicant in case of any misdeclaration by any applicant or any applicant failing to export the allocated quota to the respective country(ies), within the specified time period,” it stated. The Foreign Commerce (Development & Regulations) Act of 1992 governs how foreign commerce occurs.
The decision by the Indian government to permit potato imports from Bhutan without any license until June 2024 marks a significant step toward enhancing bilateral trade and cooperation. This move benefits both nations’ economies and opens up avenues for collaboration in the agricultural sector. The relaxed licensing policy will foster increased potato imports, bringing economic opportunities, diversification of potato varieties, and improved food security. This decision is expected to contribute to the longstanding friendship and partnership between India and Bhutan, paving the way for further collaboration and prosperity in the years to come.
