Declining demand and rising transportation costs

Vegetable exports fall by 77% over two years

Published: Sep 28, 2024

Staff Correspondent, Chattogram Bureau

Bangladesh’s vegetables have always been in high demand in the global market. However, rising local prices, increased air cargo and container shipping costs, and excessive chemical usage have led to a decline in exports. Just two years ago, 60,000 tons of vegetables were exported, but in the last fiscal year, this dropped to only 14,000 tons—marking a 76.58 percent reduction.

According to industry experts, transportation companies have repeatedly increased rates over the years without notice. Air cargo and refrigerated container (refrigerated or temperature-sensitive containers) costs have risen significantly. For instance, sending products from Kolkata to London costs just $2 to $2.50 per kilogram, while sending the same products from Bangladesh costs over $5.

Data from the Chattogram Plant Quarantine Station (Seaport) shows that during the 2023-24 fiscal years, Bangladesh exported 1,669 tons of fresh vegetables (such as pumpkin, cabbage, and tomatoes); 1,406 tons of frozen vegetables; and 11,127 tons of potatoes, totaling 14,202 tons of vegetables. In comparison, during the 2022-23 fiscal years, Bangladesh exported 3,176 tons of fresh vegetables; 1,187 tons of frozen vegetables; and 29,560 tons of potatoes; totaling 33,923 tons. Two years ago, in 2021-22, vegetable exports amounted to 60,634 tons, including 5,582 tons of fresh vegetables; 2,028 tons of frozen vegetables; and 53,024 tons of potatoes. This indicates that in two years, vegetable exports have decreased by 46,432 tons or 76.58 percent.

Among the vegetable crops exported from Bangladesh, potatoes account for the highest volume. However, Bangladesh is falling behind due to countries like China, India, and Russia exporting potatoes at lower prices. Yet in 2015-16, Bangladesh was among the top potato exporters in the global market.

In addition to potatoes, Bangladesh exports various vegetables such as pumpkins, cabbages, cauliflowers, tomatoes, beans, eggplants, spiny gourds, pointed gourds, taro roots, bottle gourds, and Chinese cabbages.

Exporters claim that they have to purchase vegetables from local markets at prices BDT 10 to 15 higher than the domestic rate. Moreover, despite the demand for frozen vegetables in the Middle East, Europe, the US, and Canada, businesses have reduced vegetable and fruit exports due to rising air cargo costs and refrigerated container fees. Competing countries are exporting organic vegetables and fruits, while excessive chemical residues have been found in Bangladeshi produce. This also discourages foreign buyers who avoid chemically treated products.

Mahbub Rana, President of the Chattogram Fresh Fruits, Vegetables, and Products Exporters Group, told Bonik Barta: “Fruit and vegetable exports are a promising sector. But in the last six months, air cargo rates have increased 17 times. Shipping one kilogram of potatoes to Europe, the US, and Canada costs around BDT 700, while Indian exporters pay just BDT 250. Given this scenario, Bangladeshi exporters are losing interest.”

He claims that at least 70 percent of businesses have withdrawn from vegetable exports. “Instead of sending vegetables by air, we tried to ship perishable fruits and vegetables via refrigerated containers. But due to the global economic downturn and the Russia-Ukraine war, container prices have surged from $1,000-$1,500 to $5,000-$6,000. Higher transportation costs and high purchasing prices from farmers are further increasing losses in vegetable and fruit exports.”

In response to the overall situation, Dr. Mohammad Shah Alam, Deputy Director of the Chattogram Plant Quarantine Station, told Bonik Barta, “Vegetable exports through the Chattogram port and airport have declined. Rising transportation costs are causing businesses to lose interest in exports. We are in contact with exporters to encourage more exports abroad.”

He also mentioned that vegetable exports could increase if air cargo and refrigerated container shipping costs were reduced.


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