Bottlenecking in Bhutan's orange export to Bangladesh causes trouble for Indian stakeholders

SILIGURI: After attaining height in price realization and volume three years back, orange export of Bhutan to Bangladesh through India took stagnancy. And that is not likely to break even in this year. Beside other factors, brewing up political unrest in entire Dooars of north Bengal foothills is a major factor behind the bottlenecking that is causing trouble for Indian stakeholders involved into the trade.

Orange of Landlocked Bhutan finds its passage to Bangladesh mainly through Assam or West Bengal foothills with many Indian stakeholders directly or indirectly involved at many tires beginning from skilled labour, ground handling agents, transporters to investors.

According to Bhutan Agricultural Food Regulatory Authority (BAFRA), the 2007-08 and 08-09 season ended with record return. Against average price of USD 8 to 10 per box(28kg), the average annual sales of over 20K metric ton to Bangladesh during the said period fetched return of as high as USD 15per box price. "It was a record," said BAFRA officials. "But, the export volume took a downward turn during subsequent years," they added.

According to exporters, insurgency or unpredictable bandhs in Assam have always remained as a major hindrance. In addition, time consuming clearance of highly tightened security at Indo-Bhutan and Indo-Bangladesh borders are also another matter of concern.

"In case of any major blockade in Assam side, we used to take West Bengal routes. But, that is also now under trouble. Recent upraise of unrest around Darjeeling's political crisis even in deep corners of West Bengal foothills have become a major worry. In addition, tussles between tribal forces, fight of them with Gorkha activists and rapid reemergence of Kamtapuri activists are major worry," they said. Kamtapuris are demanding separate statehood for North Bengal districts as Gorkhas are demanding Gorkhaland statehood for Darjeeling hills.

"Orange being highly perishable, does not allow the long time being taken to pass these unpredictable bandhs or all the security measures. And a single rotten fruit causes rejection of entire box by the buyers," said Mr. K. Namgyal, an orchard buyer.

Eventually, "Beside near 5000 handling workers in India, exporters and traders who have already paid to the orchards or Bhutan wholesalers, will have to remain dependent on Indian Markets around Siliguri in West Bengal. But, price offered by these markets are much lower than Bangladesh though the retail level, pricing is not likely to reflect that," said Mr. K. Paul an Indian handling agent.