RMA-STUDY-POTATO-CHITRAL-NAK

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Draft Report version 1.0
By: Noor Alam Khan, Business Development Officer, AKRSP-TAP-ASF

Contents
1. BACKGROUND ................................................................................................................... 1
1.1 Introduction ................................................................................................................1
1.2 Objectives...................................................................................................................2
2. METHODOLOGY................................................................................................................. 2
2.1 Respondents................................................................................................................2
2.2 Sample Size..................................................................................................................2
2.3 Data Collection Tools ..................................................................................................2
2.4 Data Analysis Approach...............................................................................................3
3. RESULTS AND FINDINGS – BUYERS (Market Agents and Processors):................................ 3
3.1 Respondents’ Profile ...................................................................................................3
3.2 Type of Value Chain Actors .........................................................................................3
3.3 Geographic spread of the Value Chain Actor..............................................................3
3.4 Months in which you trade/deal in this value chain...................................................4
3.5 Product – Average Quantity Purchase ........................................................................4
3.7 Price – Average Price Per Unit.....................................................................................5
3.8 Buying Preference – Formal contract or competitive process....................................5
4. RESULTS AND FINDINGS – Suppliers (Producers and Farmers): ......................................... 5
4.1 Respondents’ Profile ...................................................................................................5
4.2 Type of Value Chain Actors .........................................................................................5
4.3 Geographic spread of the Value Chain Actors ............................................................6
4.4 Months in which you trade/deal in this value chain...................................................6
4.5 Product – Average Quantity Sold................................................................................6
4.6 Product – Quality of Product Sold...............................................................................6
4.7 Price – Average Price Per Unit.....................................................................................6
4.8 Place – Selling Point ....................................................................................................6
4.9 Place – Type of Buyers ................................................................................................6
4.10 Selling Preference – Formal contract or competitive process....................................6
5. ANALYSIS........................................................................................................................... 7
5.1 Quantity, Quality and Price Compatibility b/w Producers and Buyers.......................7
5.2 Limitations of Small Farmers to Develop Linkages with Competitive Buyers.............7
5.3 Opportunity to Establish Market Linkages of Buyers with Farmer Groups ................8
6. FIELD OBSERVATIONS........................................................................................................ 9
6.1 Input Supplies..............................................................................................................9

6.2 Production...................................................................................................................9
6.3 Marketing...................................................................................................................9
6.4 Transportation...................................................................................................................9
6.5 Financing .........................................................................................................................10
7. CONCLUSION AND RECOMMENDATIONS........................................................................ 10
Annex 1 ................................................................................................................................... 12
Annex 2 ......................................................................................... Error! Bookmark not defined.
Annex 3 ................................................................................................................................... 12

List of Abbreviations
TAP The Agribusiness Project
RMA Rapid Market Assessment
FGD Focused Group Discussion
ASF Agribusiness Support Fund
AKRSP Aga Khan Rural Support Programme
FEGs Farmer Enterprise Groups
VC Value Chain

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1. BACKGROUND
The Agribusiness Project (TAP) will systematically address the priority problems and critical
constraints impeding the development of the agribusiness sector in Pakistan. The project will
adopt a holistic approach to identify priority value chains (VCs) and address gaps in key value
chains through integrated assistance packages. The project will serve as a catalyst to create
conditions to enhance growth potential and income and employment creation opportunities in
the horticulture and livestock sub-sectors by bridging the gap between demand and supply.
The Project intends to bring suppliers (producers) and buyers (market agents and processors) of
targeted horticulture products (VC). This requires an extensive effort at both demand and
supply end to create a win-win situation; so that producers supply what is demanded by buyers
i.e. market agents and processors. At producers end, the Agribusiness project is technically and
financially supporting the producers to organize them in farmers enterprise groups (FEGs), so
that they can enjoy economies of scale for purchase of cost effective and quality inputs, farm
level inter group learning, collective post-harvest management, and selling produce to
competitive markets.
Though overall AKRSP with the financial support of The Agribusiness Project will intervene in
three sub sectors over the project life starts from Sept 2012 and ends in August 2015 includes
high value horticulture, livestock & dairy, and fisheries.
In the meantime AKRSP will intervene in the Potato Value Chain of high value horticulture as
owing to cropping season starts from March-April whereas other value chains will be intervened
with their cropping starts.
1.1 Introduction
The technical and financial support to small holders involve formation of commercially viable
enterprises of farmers and developing their capacities to make them competitive, and to
develop effective and sustainable business linkages with the market to sell their produce at
maximum price. The facilitation in developing sustainable farmers’ enterprises and market
linkages of producers with the buyers (market agents and processors) requires detailed
understanding of prescribed quality and desired quantity of produce required by market in the
value chain.
The Agribusiness project and its partner NGOs intend to conduct rapid market assessment to
understand the market situation of targeted sixteen (16) value chains in respective regions,
which includes apples, apricot, banana, chilies, citrus, dairy, dates, grapes, guava, high
value/off-seasons vegetables, meat, peach, pomegranate, potato, strawberry, and tomato.
The project activities planned during the second year will assist in transformation of targeted
value chains to have a long term multiplier effect with sustainable results in terms of creating
employment and income generation opportunities. The approaches sorted out for the
development of prioritized value chains revolve around market-led business development
approach, and are supported by a range of activities across the value chain. The lead company
grants will be issued to develop a competitive processing and export side of each value chain.
The market assessment will help the project in organizing the individual farmers into Farmer
Enterprise Groups (FEGs) and building their capacity to develop effective and sustainable
market linkages with buyers for sale of produce.

1.2 Objectives of the study
The objectives of the rapid market assessment are to:
 Determine quantity and desired quality/verities of potato crop demanded by buyers
(market agents/processors);
 Identify gaps between the quantity, quality and varieties supplied by individual farmers
and demanded by the buyers;
 Explore opportunities in the potato value chain that can be leveraged to increase the
income of small-holders
2. METHODOLOGY
The following methodologies have been applied in conducting the assessment.
2.1 Respondents profile
The data has been collected from production and market side in the value chain. At production
side data collected on standardized questionnaire from group of farmers after conducting
Focused Group Discussions (FGDs). The farmers participated in the FGDs were small-holders
with average land landholding of 2.5 acre. The guidelines for FGDs involved collection of
information from group of farmers on their production, post-harvest management, produce
selling and marketing to buyers.
Similarly the data of the market side actors (market agents’ and wholesalers) collected on a
separate standardized questionnaire. The process included collection of data and information
on their sources of supply i.e. from where they purchase, and how much quantity and of what
quality/varieties and at what price they buy? These assessments include questions on
satisfaction from existing trade and satisfaction level from quantity, quality and verities
supplied/demanded.
2.2 Sample Size
During the baseline study, region wise data was collected from key stakeholders including
producers, processors and market agents. The data collected identified 20% of those market
agents/processors that contribute more than 70% of the demand. For this particular value chain
the RMA involved data collection from five buyers/market agents, 30 farmers who participated
in focus group discussions conducted in two potato producing valleys of Chitral including Golain
and Garamchashma. Beside these other related persons (respondents) identified during field
and market visits were also interviewed. Production and buying data collected from the real
production and buying records of the respondents.
2.3 Data Collection Tools
Tools used in the study are structure questionnaires, in-depth interviews and Focus Group
discussions. Questionnaires were different for market level (Buyers) and production (producers)
level respondents. Similarly direct observation, formal discussions were also used during field
visits and discussion that are also give insight to this study.
The RMA was carried out by Noor Alam Khan, Business Development Officer with the technical
oversight of regional project office, Peshawar. This assessment was completed within 2 week
(February 7-22, 2013). The market assessment reports consists of information including but not

limited to the following questions for each value chain, in which interventions are being
planned by the project in Year-2.
 Large Buyers/Market demand for targeted VC product
 Quantity and desired quality of product required by large buyers, and
 Bottlenecks and opportunities in the value chain that affect smallholder potato growers
 No. of FEGs required meeting the production demand and capacity assessment of FEGs
to satisfy the quality.
2.4 Data Analysis Approach
The analysis mostly uses percentages and average (median) to make comparisons and develop
understanding. Collected data have been analyzed by drawing charts and tables. The market
assessment reports consists of information including but not limited to the following questions
for each value chain, in which interventions are being planned by the project in Year-2.
 Large Buyers/Market demand for targeted VC product
 Quantity and desired quality of product required by large buyers, and
 Number of FEGs required meeting the production demand.
3. RESULTS AND FINDINGS – BUYERS (Market Agents and Processors):
3.1 Respondents’ Profile
The profile of the respondents is available in data collection questionnaire available in (Annex1).
3.2 Type of Value Chain Actors
At buyers side the value chain actors are market agents, sub agents, large buyers, and
wholesalers. In this research total 5 buyers including
30% wholesalers 70% market agents interviewed.
Majority of value chain actors (80%) are sub agents
who actually work for large market commission agents
and buyers and they purchase potato from farmers
and sells at the commission shops in major markets.
Very few are local buyers who actually purchase from
farmers and sell it to down country markets like
Gujranwala, Lahore and Peshawar on their own
arrangements.
3.3 Geographic spread of the Value Chain Actor
100% value chain actors interviewed in this research are spread at national level. Potato is
produced in the mountainous and remote valleys of
Chitral while the market agents exist in Chitral city, in
big markets/Mandis’ of Punjab and KPK who further
connected to processors and large buyers and
exporters.
District Chitral has four areas where potato is largely
produced i.e. Garam Chashma valley, Golain and
Phasti, and Oweer. In these areas the down country
buyers (mostly from Gujranwala and Lahore) are active
through their agents whom they provide seeds and
finance to secure potato for their trade.
0
0.5
1
1.5
2
2.5
3
3.5
Retailers Wholesaler Contractor Processor Market
Agents
Figure 3.1
Types of Value Chain actor
0
1
2
3
4
5
6
District Level Provincial
Level
National Level International
Level
Other
(Specify)
Fig. 3.2
Geographical Spread of VC actors

3.4 Months in which you trade/deal in this value chain
The buyers of the potato responded in
different ways. The local respondents
(90%) deal in the potato value chain,
from February to May during which they
build their linkage with the farmers and
sub agents at village level and provide
inputs (seeds and fertilizers) and enter
into informal contract for future
purchase of the produce at competitive
price.
Majority of them give inputs on credit to secure future trade with the farmers. When the potato
harvesting starts in the month of August and september, these actors starts buying the produce
and transport to more profitable market till October hence dealing for six months.
10% actors (buyers), who exist in down country markets, responded that they trade in the value
chain round the year as the cropping season is different for different areas of Pakistan.
3.5 Product – Average Quantity Purchase
The data analysis shows that the
participating buyers are purchasing 375
tons (median of total) potato per season
and the number is double for down
country buyers. The local market in
Chitral has a very limited size to satisfy
the supply during the harvesting season.
Due to limited local demand and
oversupply, the prices decrease at large
and the potato growers shift their
attention to market agents who come
from down country large markets.
According to the market agents and wholesalers there is demand for new varieties like Atlantic,
Bintje, Rose Bhurban, Lady Rosetta and Spunta from the processors of potato who make potato
chips and other value added products. The potato dealers and buyers said during interview that
potato processors enter into contract with farmers and provide their own seed variety. They
also purchase back at the time of harvesting at higher rates than normal market prices. This is
one of the step which large potato processing companies have taken in order to make smooth
their supply chain which is crucial to meet their products’ demand in the market.
3.6 Product – Quality of Product Purchase
The buyers prefer to purchase potatoes
that are produced by sowing newly
introduced branded seeds. The red
skinned variety is in high demand which is
used as table potato and seed for
reproduction. According to the local
buyers most demanded brand for the
potato are Rocco, Coroda and Desiree.
However it was observed during
interviews that the local buyers were not
much aware of new varieties and the
0
10,000
20,000
30,000
40,000
50,000
Quantity (tons) Average Price (per ton) Pak
Rs
Fig. 3.4
Quantity purchase and average price
20
60
100
0 00
20
40
60
80
100
120
Certified/
branded/
marked
Uncertified/
unbranded/
unmarked
Specified type/
size and quality
No specified
type/ size and
quality,
whatever is
avabile
Other (Specify)
Fig. 3.5
Quality / varieties
0
2
4
6
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Fig. 3.3
Trade activites of traders in the months

reasons behind the high demand for some varieties of potato. They analysis shows that the 80%
of the buyers purchase specified type of potato mostly graded and red skinned. All buyers
involved in the interview are currently buying specified type, size and quality potatoes while 60
percent buyers said that they also buy uncertified/unspecified varieties. Only 20 percent
currently buying certified/branded/marked verities which are very rare in Chitral as per the
buyers. Further questions and clarifications from the buyers to not certified brands explored
that a little or no certified branded seeds are used in Chitral. The farmers are unaware of the
certified brands and their impact on prices and production. The buyers claim that the farmers
cannot afford branded seed due to high prices therefore they use any seed (normally table
potato) available to them in the sowing season for reproduction. The main interests of the
buyers in terms of quality are new varieties of potato produced from certified brands, in
specified size/type and properly graded.
3.7 Price – Average Price Per Unit
The buyers purchasing price analysis shows the average price is PKR 19250 per ton per season.
3.8 Buying Preference – Formal contract or competitive process
80% buyers buy at farm gate with informal
(not written & unbound) pre-harvest
agreement through a competitive price
and 20% purchase from middleman. All
buyers are interested in buying directly
from the producers, however majority of
them are not interested in pre-defining
terms for contract especially prices setting
at the time sowing. They are of the view
that normally companies involved in value
addition and product development from
potato enter into such agreements as they
need special varieties and they have
calculated their cost and profits from the final product. The sellers in the market are depended
on the market (Mandi) price where rates are much volatile therefore prior setting of prices
expose them to a high risk.
Majority of the respondents replied that they will prefer to purchase at competitive prices at
harvesting time as the prices of vegetables are highly volatile and entering into agreement by
fixing prices may suffer them. Similarly the road conditions in Chitral are highly exposed to
floods in the harvesting seasons therefore sometimes flood devastate the road infrastructure
and entering into such will be a high risk decision.
4. RESULTS AND FINDINGS – Suppliers (Producers/Farmers):
4.1 Respondents’ Profile
The respondents are farmers who are involved in potato on potato production in their own or
leased fields. The profiles of the respondents are available in ANNEX 2.
4.2 Type of Value Chain Actors
The value chain actors are small holders whose average land under cultivation is 2-3 acres. They
are connected to the market agents (both local and non-local) for the sale of their produce who
further connected to large market agents in down country markets.
80%
20%
0% 0%
Buying Preferences
Direct from
Farmers (%)
From
Middleman (%)
From Market
(Mandi) (%)
Other (Specify)

4.3 Geographic spread of the Value Chain Actors
The farmers’ access is limited in the valleys as (97%) farmers sell their produce at farm gate.
Only 3% farmers have access to large market at provincial and national level.
4.4 Months in which you trade/deal in this value chain
The season for sowing potato starts in the mid of April and continues till the mid of May.
However the farmers start to deal in the value chain by placing inputs (seed and fertilizers)
order to middlemen in the month of February and March. After sowing the crops they involved
in pre-harvest management of field and the crop get ready to harvest in August and September.
So they are involved in the value chain from February to September (8 Months). Many farmers
also showed interest for off-season potato production in lower areas of Chitral.
4.5 Product – Average Quantity Sold
The average quantity every farmer sold is 4 tons (median) per season.
4.6 Product – Quality of Product Sold
Of the participating farmers 83% responded
that they use uncertified seeds whatever is
available from market agents, sellers or self-
stored. 10 percent are selling specified type
(red skinned, graded). Only 7 percent farmers
have understanding of certified seeds. The
major varieties sold are Coroda, Desiree and
Rocco which are mostly produced from
uncertified seeds of these varieties. However
the seed provide satisfactory results in terms of
diseases free produce but the yield is low for
such seeds. The farmers have no or less idea of
better seeds for their fields that can provide
maximum yield.
4.7 Price – Average Price per Unit
The median selling price of the respondents is PKR 15759/ per ton.
4.8 Place – Selling Point
97% framers are selling their produce to middlemen at farm gate. Only 3% have access to large
markets because they produce relatively at large level.
4.9 Place – Type of Buyers
The farmers are retail buyers of seed who normally purchase from middlemen wholesalers and
market agents.
4.10 Selling Preference – Formal contract
or competitive process
93% farmers sell through informal
agreement (verbal agreement to purchase
back at competitive price) at the time of
inputs purchase from the buyers
(agents/middlemen). Inputs are normally
purchased on credit from the middlemen.
Fig: 4.2
40%
10%
38%
10%
0% 2% 0%
Selling Arrangements
Pre-harvest selling
Post-harvest selling
At farm selling
Packed product selling
Branded product selling
In market selling
Other (Specify)
Fig: 4.1
4%
46%
5%
45%
0%
Quality /variety
Certified/branded/mark
ed
Uncertified/unbranded/
unmarked
Specified type/size and
quality
No specified type/size
and quality, whatever is
avabile
Other (Specify)

Only 7% of farmers sell through competitive process at market or to the agents as they use their
own seed and other inputs to plant potato. Similarly these independent farmers also purchase
at large level from other farmers to further sell in the down country. However majority farmers
are interested to enter into formal agreement to sell their produce at competitive price.
5. ANALYSIS
5.1 Quantity, Quality and Price Compatibility b/w Producers and Buyers
The perspectives of the producers and buyers are different in term of quality and price
compatibility.
The average price according to the producers is PKR 15759 while the median purchase price of
buyers is PKR 19000. The difference shows that there are further sub agent packing persons
who mostly come from down country and the difference goes to them. The average price in the
large market is higher than the offered rates of agents who work for large buyers and
wholesalers.
On average, one buyer/market agent purchases 375 tons per season while on average on
farmer is producing 4 tons per season which shows that one buyer can cater 94 farmers. We
can infer here that to meet the said demand, about 470 farmers can be brought under the
umbrella of FEGs. As per this more than 30 FEGs can be formed in potato value in district
Chitral. This also shows that there is enough demand for the produce. Similarly the down
county markets are starving in the month of August and September. The reason is no potato
crops is grown in the summer season in the plain areas of Pakistan and only least supply is
available from the mountainous areas of Gilgit-Baltistan, Chitral, Upper Dir, Batakundi etc.
Buyers’ preference remains for Rocco, Coroda and Desiree brands whereas the producers do
not have understanding of certified and more demanded brands. The farmers say that they
grow from seeds whatever quality/type is available. They further say that the seed from which
they grow doesn’t provide maximum yield that’s why they are in the view that the seed is not
certified. However the markets agents say that they provide specific brand seeds mostly
Desiree and Coroda to the farmers and Rocco is the new variety which is also in high demand.
Furthermore down country buyers import seed or produce their seeds in mountainous areas.
The farmers of Chitral do not have awareness and understanding of producing seed potato
beside huge demand of seed potato and favorable environmental conditions.
The recent trend and demand for processed products of potato creates an opportunity for the
growers. By developing effective linkages of potato growers with potato processors in collective
manner the farmers can get better and less volatile prices. For this purpose effective facilitation
between the parties will be instrumental.
5.2 Limitations of Small Farmers to Develop Linkages with Competitive Buyers
Through this study and field visits observation and investigation, we identified some gaps that
hinder the small farmers to develop linkages with the competitive buyers.
The first limitation is the remoteness of the area from the competitive buyers who reside in
large markets i.e. Gujranwala and Lahore. Due to remoteness from these market agents and
middleman come who purchase the produce at their own terms through artificially
manipulating local prices.

The second limitation is the illiteracy of the farmers. The people associated with the potato
production have very limited knowledge of potato production and potato business. They do not
have understanding and exposure of growing potato on commercial basis rather they produce
and sell at farm without understanding its real value.
The farmers as sell locally they do not have market intelligence of market needs, demands and
prices volatility in different markets of Pakistan. The farmers normally plant those varieties that
produce maximum yield and the sizes are large in size. However they don’t know about that
large sizes are not liked in the market. Also each potato seed variety life cycle ends in 5-7 years
which lowers yield.
Another challenge is artificial market price manipulation by buyers at farm gate in order to
reduce the price. In the very beginning of the harvesting season they offer high price but during
this time produce is not much prepared to harvest. If farmers start pre-mature harvesting then
their yield can be low thus they incur losses. Whereas when they wait for mature harvesting
the buyers reduce the price artificially. At that point in time, if the farmers do not sell the
produce at low price then they may incur big losses and even they can’t recover their cost of
harvesting the potato. In addition to this there is no cold storage available to preserve the
produce and sell it at right time. Therefore in this situation farmers sell their produce on throw
away price.
The fifth challenge is that due to small land holding and low productivity of potato each farmer
can’t approach the market solely. Furthermore due to long distance from production area to
main down country market, farmers can’t access the market.
In this situation these challenges can be countered through developing farmers associations or
cooperatives at producers’ level, which will enable them to collectively access large markets
with scale, enhance their market intelligence and bargaining power and increase their ability to
get quality inputs at lower prices.
5.3 Opportunity to Establish Market Linkages of Buyers with Farmer Groups
In potato business not only farmers face difficulties but buyers also face stern difficulties while
dealing with many large number of farmers. Buyers’ major difficulties include packing the
ungraded produce, using low quality packing material, mixing rotten and damaged potato and
also packing the small size potato. Therefore these quality issues hamper selling the produce at
good price.
These very challenges can be overcome by developing effective linkages with of large scale
buyers with farmer enterprise groups and associations of farmers. Farmer enterprise groups can
ensure quality in production, grading and packing & packaging. Similarly it will be easy and
feasible for large scale buyers to approach and negotiate with big chunk of farmers in form
groups/clusters and associations.
These farmer enterprise groups can benefit both farmers and buyers at the same time. Buyers
do not need to negotiate with multiple farmers thus can negotiate with large number of
farmers as a result their time and money both can be saved.

6. FIELD OBSERVATIONS
6.1 Input Supplies
The first and the foremost problem of farmers are quality input supplies. During our focus
group discussion it has been observed that quality inputs are not provided to farmers especially
seeds and fertilizers. Due to non-availability of quality seeds the yields are very low compared
to national average. If quality inputs are available on time then their production can be
increased to 30-40 percent of the current yield. The farmers cannot afford the quality inputs
which is not available especially on credit and rely on market agents who normally provide low
quality inputs on credit. Farmers response was mixed about the high priced potato true seed
which they think might be very expensive for them and the resulting yield will may not be
enough to buy high priced seeds. Some farmers said that no one sell a good quality real seeds
and they cannot trust anybody unless the yield proves it.
6.2 Production
Farmers have been practicing primitive techniques of production and they don’t have pre
harvest crop management skills therefore it has also been learned from the farmers that about
20-30% is lost due to poor crop management practices ranging from land preparation to
watering and seeding. The production can be increased if modern techniques applied.
6.3 Marketing
It has also been observed that marketing is one of the major bottleneck hindering farmers to
fetch better prices. Majority of farmers are in unaware of post-harvest handling techniques and
marketing skills. Farmers just sell their produce without grading, packing, and packaging. This
results in low return for the farmers.
In addition to this, one more thing which forces to sell their produce on throw away price is
non-availability of storage systems as farmers cannot wait after harvesting when the rate is
running low in major city markets. Harvesting season in Chitral and other mountainous region
of Pakistan is comes in summer during which the plain areas are not producing potato due to
hot weather conditions. As a result, demand for Chitral potato increases manifold as compared
to normal market prices. However, buyers and traders manipulate market artificially and
compel farmers to sell their produce on throw away price. Farmers can’t wait long because at
one side their produce starts to spoil owing to non-availability of proper storage facility and at
the other side they can’t harvest another crop in the same land without removing potato from
the fields.
These two inevitable factors force them to sell their produce. If proper storage is available then
the farmers can fetch huge sum from this produce and can also be saved from exploitation of
traders and buyers.
6.4 Transportation
During discussion with buyers it explored that due to long distance from local market to main
down country markets, transporters exploit traders and buyers. According to transporters they
charge less carriage from Chitral to down country because they actually come to deliver other
consumable goods from down country to Chitral. They said that while going back empty they
offer less transportation prices to buyers and traders to cover their fuel cost. However by
making contract with these transporters, carriage cost can be reduced.
Another major aspect of transportation is that the transporters use small truck from Chitral city
to Dir due to road problems. From Dir to large markets they use large trucks by off-loading small
truck trucks. During the on-loading and off-loading process the produce also tends to rotten and
its price also increase. Furthermore in some valleys due to un-availability of truck roads, small
jeeps are being used for transportation of produces which increases the cost.

6.5 Financing
Financing for investing in seeds and fertilizers is a big problem for farmers. According to farmers
plantation season starts after winter and during long winter season, they just spend whatever
they saved during spring and summer. As plantation season starts, they tend to purchase inputs
from market agents on credit with informal contract for purchase of the produce on harvesting
and come in trap of middlemen who first sell the low quality seed at high price and later to
recover the their credit they purchase the produce mostly on their own terms as the farmers
have limited options to sell elsewhere.
If finance would be available on time, the farmers will not only be able to purchase high quality
seed and inputs and their productivity will at large. In this case the farmers will be able to sell in
better prices as they will become independent. In this regards, The First MicroFinance bank and
Helping Hands’ Islamic MircroFinance can play important role. By facilitating coordination
among the financiers and the micro growers or their groups will be play instrumental role in
making them independent.
7. CONCLUSION AND RECOMMENDATIONS
Potato is the number cash crop of small scale farmers in some valleys of Chitral and main source
of livelihood for thousands of Households. The rapid market assessment shows that there is
huge market demand exists for Chitral potato across Pakistan due to its unique features and
attributes including disease free, fresh and tasty. To cater this huge demand, it needs to
develop interventions strategy that address the bottlenecks at all levels of value chain.
Intervention shall be made in input, production, process and market level. People of Chitral
have long experience of working with this product thus plenty of human resource is available
coupled with abundance of land and farmers ready shift their crops to potato.
Some critical programming is needed at all levels of potato value chain by marrying human and
physical capital with financial capital while enhancing the skills of human capital by imparting
trainings. As the environmental conditions of Chitral are very favorable for potato production
and a large population is associated with this sector and if this sector starts to perform then this
will create employment opportunities and increase the economic base of the poor rural
communities.
According to the study and other reports the potato producing in Chitral has market edge as on
other produce of a country. The reason is that due to high altitude and cold weather, disease
free potato is being produced. The second quality of potato of Chitral is, soil is much fertile and
it has not been applied agro chemicals intensively on this land therefore yield can be increased
and potato is being produced as seed for Punjab and some parts of KPK.
The third attribute is that when the off season starts in down country harvesting season starts
in Chitral, thus Chitral farmers can earn huge sums on this produce in the starving market. The
fourth attribute is land available for storage. When harvesting season starts winters season also
approaches, the people have the only option to dig and burry the seeds in the soil to keep the
temperature favorable for potato. This system of storage is in practices in many countries for
centuries.
In order to exploit above attributes following recommendations have been given by farmers
and traders.

a) The farmers should be motivated to be organized in commercial ways to collectively make
their efforts for conducting potato business so that they can access large market and
accumulate resources easily.
b) The commercially organized farmers’ capacity shall be increased to efficiently and
effectively operate their enterprises in an organized and profitable manner.
c) Pre and post-harvest trainings shall be imparted to increase yield and quality.
d) New technology and tools should be transferred to the farmers along with training for
sowing and packing to ensure maximum productivity and efficiency.
e) Farmer associations/Cooperatives should be made to counter buyers exploitation and
increase market access
f) Enterprise and marketing trainings shall be imparted to both farmers and local buyers
g) Market linkages of micro growers’ groups/associations shall be made with large scale
buyers in down country
h) Potato value addition enterprises should be established/facilitated in Chitral.
i) As the environmental conditions are very suitable for potato seed production so the
farmers’ groups shall be sensitized and motivated for registered seed production and
development of seed brand. However this can be done by engaging lead enterprises from
private sector that can develop and promote the brand with consistent supply of potato
seeds. Associations can also be engage in managing this process, however the capacity of
association will matter in this regard.
j) Motivation should be created in youth and educated people to enter into potato business
growing and value addition business.
k) As recently the demand is increasing for processed products like French Fries, Lays etc.
there should be meetings and contracts with processors for vertical backward integration of
FEGs for sustainability. In this regard PEPSI Co., OnePotatoTwoPotato etc. can be engaged
to develop their backward linkages in Chitral.
l) Storage facilities should be constructed at cluster/FEG level for storage of produce and
seeds.

Annex 1
Profile of Potato Buyers
Unavailable in this version

Annex 3
FGD pictures
Unavailable publicly.

RMA-STUDY-POTATO-CHITRAL-NAK

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