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Bangladesh’s agricultural exports posted a sharp year-on-year decline by 27.47 per cent to $843 million in FY23, despite ongoing government initiatives to diversify the country’s export basket and curb overdependence on any particular sector.
Agro export earnings in FY23 fell nearly 40 per cent short than the government target of $1.4 billion. The country earned $1.16 billion from this sector through exports in FY22, show latest data from the Export Promotion Bureau (EPB).
Bangladesh agro export basket currently includes tea, vegetables, tobacco, cut flower and foliage, fruits, spices and dry food items.
Speaking to The Business Post, industry insiders and exporters say aromatic rice used to occupy a large part of our agro export basket. Export of such rice varieties completely stopped last year by order of the government, to cover domestic demand and keep prices stable.
Export of betel nuts also halted in the United Kingdom (UK) due to lack of approval.
It should be noted that Bangladesh’s overall exports rose by 6.6% to $55.55 billion in FY23 when compared year-on-year riding on the readymade garment industry, but economists are concerned over the decrease in exports in major sectors such as agriculture, as it may trigger ill effects on the country's economy and employment.
According to EPB data, Bangladesh’s agricultural sector exports more than eight types of products, mainly tea, vegetables, tobacco, flowers, fruits, spices, dry food. Other agro products are also exported in small quantities.
Exports have decreased in all sectors except spices, tea and tobacco.
In this sector, fruit exports witnessed the biggest drop in FY23, slipping 81 per cent year-on-year, and 84 per cent of the annual target. This is followed by vegetable exports with a decline of 39 per cent. However, tobacco export earnings increased by 52 per cent last FY.
Bangladesh earned $61.14 million by exporting vegetables in FY23, a drop from $99.91 million recorded the previous year.
The most common fruit exports from Bangladesh are mangoes and jackfruits. The country’s fruit exports stood at $1 million in FY23, a fall from $5.29 million in FY22.
Manjurul Islam, adviser to Bangladesh Fruits, Vegetables and Allied Products Exporters Association, said, "We had a problem with betel leaf, now we are able to export to different countries of the EU.
“Around 85 per cent to 90 per cent of these products are exported to the UK, although we do not have the country’s permission to export this item.”
He added, “The UK is the export destination for most vegetables and not just betel leaf. Fixing these export destinations requires speeding up some negotiations, which we are unable to do. Despite the demand, agro exports are not increasing, it is decreasing.”
Manjurul blamed high freight charges and non-availability of cargo space at scheduled times as the main reasons for the decrease in agricultural exports.
Mohammad Mansoor, general secretary of Bangladesh Fruits, Vegetables and Allied Products Exporters Association, said, “Vegetable exports have decreased due to the increase in air fares and prices of locally produced products.”
Dry food exports were $200.37 million in FY23, and the figure is 19.84 per cent less than the previous year. Last year, export earnings in this category stood at $250 million. In addition, flower exports have decreased by a little more than 37 per cent to $5,000.
Parvez Saiful Islam, chief operating officer of Square Food and Beverage Ltd, said, “The overall export income from agricultural products has decreased due to the halting of aromatic rice exports.
“About 30 per cent of our export earnings use to come from aromatic rice.”
EPB data shows that export earnings under the other category – in which rice belongs to – have decreased by 43.30 per cent in FY23 when compared year-on-year.
During this period, powdered spices exports rose by 6.86 per cent, tea exports rose by 9.35 per cent and tobacco exports increased by 51.72 per cent.
Khandakar Golam Moazzem, research director of the Center for Policy Dialogue, said, “The decline in non-garment exports is a matter of concern for the country's overall economy.
“If this trend continues, it may affect employment opportunities, because factory owners can lay off workers in a bid to navigate this crisis.”
