Potatoes from Punjab will head for European markets with the state's cooperative agency - Markfed - bagging orders from several countries.

Markfed managing director S.S. Channy Monday said the export of Punjab's potato produce would start early 2007.

Over 8,000 acres in Punjab's Jalandhar and Kapurthala districts - known for their potato produce - would be earmarked for growing a quality potato crop.

Farmers will grow these potatoes on behalf of Markfed, which will export them to European nations.

Channy said the cooperative was also making efforts to export 10,000 tonnes of potatoes to Malaysia, Singapore, United Arab Emirates, Sri Lanka and the Maldives next year.

Markfed, which claims to be Asia's largest cooperative, has been designated the nodal agency for potato exports. It had earlier bagged orders for supplying wheat to several countries.

Channy said Markfed would set up a 2,500-tonne multi-utility house-cum-cold store near Ludhiana to enhance its export capabilities. This unit would have state of the art handling, grading, sorting and packaging facilities for vegetables and fruits.

An Algerian trading company had recently registered Markfed as a major supplier of wheat.