Bhutan: mandarin export end season demand outstrips supply

Characterised by high prices and heavy demand, the Mandarin export season is drawing to a close with Bhutanese Mandarin exporters unable to fulfil the demands of the Bangladesh market because of low production.

Yeshi Wangchuk Exports exported 151 trucks of mandarin this season, 55 trucks less than the 2003-04 season. “We had already received US $ 350,000 as advance from the Bangladeshi importers but could supply the fruit worth only US $ 266,736,” said Sharma of Yeshi Wangchuk exports. “We had to return the balance amount.”

On February 23, exports to Bangladesh were 15,969 MT about 2291 MT less than the previous season. Exports to India- considered secondary to exports to Bangladesh- almost doubled from 1,375 MT last season to 2,549 MT this year.

Low production this year was attributed to fruit drop- the phenomenon where the fruit falls before attaining its full colour and size. Fruit drop was reportedly severe in Phuentsholing, Samtse, Tsirang Dagapela and Sarpang. Fruit drop was experienced this year in all citrus growing areas, the agriculture extension officials in Phuentsholing told Kuensel.

Many growers affected by the fruit drop experienced the lowest yield in years.

“We could not even bring all the fruits from Nganglam in Samdrup Jongkhar to Phuentsholing because of the security situation,” said Ashok Gupta of Nakchung enterprise.

Strikes in India and Bangladesh had also hampered the transportation of the fruit.

However, the average prices of Mandarin remained at about US $ 11-12 for meel (big) and US $ 9-10 for keel (small) sized oranges, according to Bhutan Agriculture and Food Regulatory Authority.

The prices are reported to be at an all time high. The floor price was fixed at US $ 8 and US $ 6 for meel and keel oranges for a box of fruit respectively. A box of meel normally had about 240 pieces of the fruit while a box of keel would have about 400 oranges.

“The prices also reached an all time high of US $ 14 for meel and US $ 12 for keel sized oranges, though prices keep fluctuating throughout the season,” said proprietor Nakchung of Nakchung enterprise. “But the weakened value of US dollar compared to last year affected the overall profit.”

According to the exporters, profits were also affected because growers who usually took advance from the exporters based on an estimated amount of production could not supply the quoted amount. “My advance payments to the growers this year was about Nu 2.6 million more than what they could supply,” said Nakchung. “My money was, thus, blocked.”