Official data from the Export Promotion Bureau (EPB) reveals a downturn in the export of fresh vegetables from Bangladesh, with a 57.93 per cent year-on-year decrease in the first six months of the current fiscal year. During the July-December period of fiscal year 2023-24, vegetable exports generated $70.36 million, whereas in the corresponding period of fiscal year 2024-25, revenues plummeted to $29.60 million. Exporters attribute this decline to several factors, including increased prices, rising freight costs, and a reduction in government incentives.
Global Trade Link's CEO, Kawser Ahmed Rubel, highlighted the substantial rise in airfreight costs, noting an increase from around $2.73 per kilogram (kg) in the previous fiscal year to approximately $3.64 to $4.09 per kg. Rubel also pointed out the hike in vegetable prices due to decreased output and increased cultivation costs. Furthermore, he mentioned the adverse impact of the government's decision to reduce cash incentives for agricultural product exports from 15 per cent to 10 per cent.
Other exporters echoed similar concerns regarding the competitiveness of Bangladeshi vegetables in international markets, especially compared to India. Mushtaque Ahmad Shah of Shah Traders and Babul Chandra Dey, another exporter, cited high air cargo fares as a primary reason for the decline in exports. SM Jahangir Hossain, president of the Bangladesh Fruits, Vegetables, and Allied Products Exporters' Association, emphasized the competitive disadvantage faced by Bangladeshi exporters due to higher airfreight costs compared to their counterparts.
EPB data indicates a fluctuating trend in vegetable export values over recent fiscal years, underscoring the challenges faced by the sector in sustaining growth amidst increasing costs and competitive pressures.
Source: Asia News Network