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STCB to export boulders and vegetables

May 20, 2015
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STCB to export boulders and vegetablesThe State Trading Corporation of Bhutan Limited (STCBL) is exploring the possibility of large-scale export of vegetables and boulders to India and Bangladesh. This follows after the government hinted on taking away its explosive business, which is its second largest revenue-earning portfolio.

Given huge demand for stone chips, aggregates and boulders from Bangladesh, STCBL is negotiating with local miners to sell large quantities of construction stones to Bangladesh. Chief finance officer Dorji Penjore said, STCBL started selling small quantities since last month, but it is looking to buy from all the local miners and export them in huge quantities.

The corporation has also signed a contract with a Bangladeshi company and set up its own liaison office in Dhaka. The Bangladeshi company will buy stones from STCBL after which it will sell to its own buyers.

Demand for stone aggregates, chips and boulders has increased significantly in Bangladesh with the country building several infrastructure including multi storied bridges, elevated express ways, thermal plants, flood protection walls, and sea ports.

Besides boulders, STCBL is also exploring large-scale export of vegetables to India and Bangladesh. Organic vegetables including asparagus, mushroom and potatoes are being tried.

STCBL Chairman Dr. Ugen Dophu said Bhutan has the advantage of proximity with Bangladesh over other countries.

Bangladesh and Bhutan were close and good neighbours, plus Bhutan also was the first country to recognise Bangladesh’s independence, the chairman said. “The only challenge is to organise ourselves and start selling to Bangladesh in large quantities.”

He added it was important if the government set a base price. This will prevent private firms from undercutting each other in terms of price. Selling it to STCBL would also become a better alternative than directly selling to Bangladesh.

The move is expected to contribute to the economy’s foreign currency reserve, earn revenue for the government and improve farmers’ income.

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