Presence of chemicals, rising production and transportation costs in the domestic market, and increased freight charges for cargo planes and containers have contributed to a massive decline in vegetable exports.
Over the last three fiscal years, export volume has dropped from 60,000 tonnes to 14,000 tonnes, indicating a dip of 76.57 per cent. Under such circumstances, exporters are losing interest in vegetable exports.
According to industry stakeholders, along with rising vegetable prices in the domestic market, the costs of containers and cargo have witnessed a several-fold increase. For example, transporting goods from Kolkata to London costs between two to two and a half dollars, whereas from Bangladesh it exceeds $5.
The prices of vegetables in foreign markets differ between the two countries, and they are often specified by their origins. Due to the higher prices of Bangladeshi vegetables, the number of interested buyers are decreasing.
Local stakeholders have warned that unless air or shipping freight costs are reduced, vegetable exports will decline further.
According to the Plant Quarantine Station at Chattogram seaport, during the fiscal year 2023-24, 1,669 tonnes of fresh vegetables (pumpkin, cabbage, tomato) were exported, along with 1,406 tonnes of frozen vegetables and 11,127 tonnes of potatoes, making the total 14,202 tonnes.
In the fiscal year 2022-23, 3,176 tonnes of fresh vegetables, 1,187 tonnes of frozen vegetables, and 29,560 tonnes of potatoes were exported, totaling 33,923 tonnes.
In the fiscal year 2021-22, 5,582 tonnes of fresh vegetables, 2,028 tonnes of frozen vegetables, and 53,024 tonnes of potatoes were exported, putting the total at 60,634 tonnes. This means vegetable exports have decreased by 46,432 tonnes over the past two years.
Potatoes are the most exported vegetable from Bangladesh. In addition, sweet pumpkin, cabbage, cauliflower, tomatoes, beans, eggplants, kakrol, potol, water spinach, bottle gourd, and Chinese cabbage are also exported.
Some of these vegetables are frozen before being sent abroad, while others are exported fresh in standard containers.
These vegetables are mostly collected for exports from various districts, including the Chattogram Hill Tracts, Chattogram, Jashore, Rajshahi, Chuadanga, Rangpur, Thakurgaon, Meherpur, and Narsingdi.
Among the country's agricultural crops, potato exports are the highest. However, Bangladesh is falling behind due to low-priced potato exports from producing countries like China, India, and Russia.
Interestingly, around 2015-16, Bangladesh was among the top exporters of potatoes in the world market.
Exporters say they must buy vegetables from farmers at prices Tk 10 – Tk 15 higher than the local market rate for export purposes. While other countries are exporting organic vegetables and fruits, most of Bangladesh’s exported vegetables show traces of different chemicals.
When Bangladeshi traders take vegetables or fruits to quarantine centers for testing, high levels of chemicals are often detected. Foreign buyers are not interested in importing these chemically treated vegetables.
There is demand for frozen vegetables in the Middle East, Europe, the USA, and Canada, but due to increased cargo costs for air freight and rising rental charges for refrigerated containers, exporters have reduced their vegetable and fruit shipments.
The increased cargo rates mean that foreign buyers are unwilling to pay those prices in their markets. Consequently, due to our rising prices and transportation costs, India is taking advantage of this situation by exporting more products.
Mahbub Rana, president of the Chattogram Fresh Fruits, Vegetables, and Products Exporters Group, said, “Exporting fruits and vegetables was a highly promising sector. However, in the last six months, the freight charges for cargo planes have increased 17 times.
“For Europe, the USA, Canada, and other countries, the cost to transport one kg of potatoes is nearly Tk 700, while India charges only Tk 250. Bangladeshi exporters can only afford a maximum of Tk 300 per kg for freight.”
As a result, due to the rising costs, Bangladeshi traders are losing interest in exporting. At least 70 per cent of exporters have withdrawn from this business, he points out.
Mahbub further stated, “Instead of sending vegetables by air, they attempted to transport perishable cargo, such as fruits and vegetables, via refrigerated containers by sea. However, due to the global economic downturn and the Russia-Ukraine war, the rental cost for those containers has risen from $1,000 to $1,500 to between $5,000 and $6,000 now.
“With the increased purchase price from farmers and rising transportation costs, the losses in vegetable and fruit exports will only grow. If cargo airfreight or refrigerated container rates could be reduced, vegetable exports would increase significantly.”
Businesses say there is a high demand for local vegetables and fruits among expatriate Bangladeshis.
However, when transportation costs are included, the prices of Bangladeshi vegetables skyrocket in the Middle East, including Malaysia, Qatar, Oman, and Bahrain, as well as in Schengen countries and the USA or Canada.
While a few buyers might purchase these vegetables as a treat, they are unlikely to buy them regularly. Moreover, the same Indian vegetables are available at lower prices in those markets, which is causing Bangladesh to lose share in the European and American markets.
