Exporters have sent 57 truckloads of mandarin to Bangladesh as of yesterday

Neten Dorji

Samdrupjongkhar—Mandarin exporters in Samdrupjongkhar are optimistic this season, buoyed by better market prices and improved quality of oranges.

Rinchen Dorji, 59, owner of Ri-Yang Export from Gomdar, has been in the mandarin export business for over two decades. This year, he is upbeat as trucks loaded with crates of mandarins roll out to Bangladesh.

“Compared to previous years, this season looks favourable,” Rinchen Dorji said. “We have better quality mandarins and strong demand from Bangladesh, even during the early peak season.”

The export season, which typically begins in mid-November, was delayed until December 10 this year due to a local election in Cooch Behar, India.

Despite the late start, exporters have sent 57 truckloads of mandarins to Bangladesh as of yesterday.

According to exporters, without proper packaging to meet export standards, the value of the oranges would decrease, despite them being highly regarded by Bangladeshi consumers.

Sherub Thuendrel Export is offering Nu 1,400 for meel (large) mandarins and Nu 1,200 for keel (small) per box, while in Bangladesh, the floor price rises to USD 15 and USD 12 per box, respectively.

Last year, the price of a keel box was USD 12, while a meel box cost USD 15 per box.

This year, the price has increased to USD 18 for a keel box and USD 20 for a meel box.

A total of 2,432.7 metric tonnes of oranges were exported to Bangladesh last year.

The soaring transportation costs poses a major hurdle. “Transportation expenses range from Nu 48,000 to Nu 50,000 per truck, with drivers paying toll fees at seven stations between Samdrupjongkhar and Daramari in Bangladesh,” said Sherub Zangpo, another exporter.

Adding to the logistical woes, exporters are struggling to acquire adequate wooden crates from sawmills for packaging.

Despite these challenges, exporter Ugyen Duba is hopeful. “The orange quality is exceptional this year. I am hoping to export around 75 truckloads from my orchard,” he said.

He has already exported 16 truckloads of mandarins to Bangladesh.

“While the quality and production have improved this year compared to last, packaging is still an important factor in the export and import business,” said Tashi Dawa, the NC export and import manager. “As a new player, dealing with the paperwork has been a challenge, but it’s a necessary part of the process.”

Exporters are also grappling with limited INR approved by the Royal Monetary Authority, which does not  cover rising costs in India and Bangladesh.

The suspension of FASTag issuance to Bhutanese vehicles and exporters has also added to the transportation costs as gate personnel charge double the normal toll fee.

FASTag is a reloadable toll collection tag that ensures seamless travel through toll plazas without the need for cash transactions. Linked to a prepaid account, it utilises Radio-Frequency Identification technology and is affixed to the vehicle’s windscreen after account activation.

“It is mandatory for exporters to pay toll fees in Indian currency,” said one exporter. “The amount in INR currently approved by the Royal Monetary Authority for all exporters is insufficient to cover all incidental expenses payable to Indian agencies.”