Fresh vegetable and fruit exporters in Bangladesh are facing challenges due to an increase in airfreight charges, particularly by Biman Bangladesh Airlines. The state carrier raised cargo fares significantly last month, with increases ranging from 56 percent to 150 percent depending on the destination. This adjustment has raised concerns among exporters about a potential drop in sales of perishables.
The Bangladesh Fruits, Vegetables and Allied Products Exporters Association has reached out to relevant authorities, expressing their apprehensions. The cost for shipping goods to the Middle East, a primary market, has escalated from 0.55 cents to up to $1.75 per kilogram. Similarly, the fare on the route from Hazrat Shahjalal International Airport to London saw a 143 percent increase, now costing $3.65 per kilogram.
According to the association's general secretary, Mohammed Monsur, this fare hike is unjustified as fuel prices have not seen a corresponding increase. The association fears this will adversely affect Bangladesh's agricultural exports, which have already been declining over the past three years. In the fiscal year 2019-20, Bangladesh exported 124,500 tonnes of fresh produce, a figure that has since decreased significantly.
Exporters are concerned about losing their market share to competitors from neighboring countries due to the higher airfreight charges. They are advocating for more competitive pricing to maintain their position in key markets. Biman, however, states that their charges are still competitive compared to other airlines and emphasizes their role in carrying a significant portion of export cargo.
Source: TheDailyStar