Vegetable exports from Bangladesh have seen a significant drop over the past three fiscal years, plummeting from 60,000 tonnes to 14,000 tonnes. This decline is attributed to various factors including the presence of chemicals in produce, escalating production, and transportation costs within the domestic market, alongside a surge in freight charges for both cargo planes and containers. Consequently, this has led to a diminished interest among exporters in the vegetable export sector.
Industry stakeholders have highlighted the sharp rise in vegetable prices domestically, compounded by the increased costs of containers and cargo, notably higher for shipments from Bangladesh compared to other origins. For instance, transporting goods from Kolkata to London ranges between two to two and a half dollars, in stark contrast to over $5 from Bangladesh. This disparity has affected the competitiveness of Bangladeshi vegetables in foreign markets, further exacerbated by their higher pricing and the detection of chemical residues, making them less appealing to international buyers.
Statistics from the Plant Quarantine Station at Chattogram seaport illustrate the downturn, with a total of 14,202 tonnes of vegetables exported in the fiscal year 2023-24, a stark drop from previous years. Potatoes remain the most exported vegetable, yet Bangladesh faces stiff competition from lower-priced exports by countries such as China, India, and Russia.
The increased costs associated with air freight and refrigerated container rentals have severely impacted the export of vegetables and fruits, making them less viable on the international market. Mahbub Rana, president of the Chattogram Fresh Fruits, Vegetables, and Products Exporters Group, emphasized the challenges faced due to the escalated freight charges, which have risen 17 times in the last six months, rendering the export sector less attractive to at least 70 percent of exporters.
Efforts to utilize refrigerated containers for sea transport have also been hindered by the global economic downturn and geopolitical tensions, leading to prohibitive rental costs. This situation underscores the need for a reduction in transportation costs to revive the vegetable export market in Bangladesh, amidst growing competition and the availability of lower-priced alternatives in key markets.
Source: The Business Post