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Mango exports halve due to high freight charges, space crunch

Rokon Uddin
08 Jul 2024 23:29:27 | Update: 08 Jul 2024 23:29:27
Mango exports halve due to high freight charges, space crunch

A separate project has been taken to increase mango exports due to the considerable demand for locally-produced mangoes in various Asian, European and American countries. Despite this, mango exports halved this season when compared to the previous one.

Exporters point their fingers at the lack of space in aircrafts and extremely high freight charges for this fall in exports. They said, “Buyers do not want to buy mangoes at such high prices. In terms of exports, the price of local mangoes is much higher than that of the rival countries India and Pakistan.”

Sources at the Plant Quarantine Wing of the Department of Agricultural Extension have said that even in mid-season, mango exports are currently less than half of what they were last year.

Meanwhile, the government has reduced the incentive from 15 per cent to 10 per cent on agricultural products. Exporters warn that this decision will increase the suffering even more.

According to Plant Quarantine Wing, some 3,920 tonnes of mangoes were exported to 38 countries last year, which is a historical high as well as a 73 per cent increase from that of the previous year. Last year, some 2,123 tonnes of mangoes were exported as of July.

Plant Quarantine Wing Deputy Director (Export) Mofizul Islam said, “Around 700 tonnes of mangoes have been exported so far. This is less than half of last year's exports made at around the same period. For the rest of this year’s season, it seems unlikely that we will come close to last year's numbers.”

Exporters have noted that many who had previously shipped mangoes to Portugal, Denmark, and Italy, in addition to the UK, Germany, and Switzerland, are unable to export to all these countries this year. They explained that last year, the cost was Tk 220 per kg, but this year it has surged to Tk 520 per kg.

Most mango exporters are associated with the Bangladesh Fruits, Vegetables & Allied Products Exporter’s Association. S M Jahangir Hossain, president of that association, told The Business Post, “The aircrafts give transport priority to the non-perishable items such as garments. Perishable agricultural products are becoming increasingly difficult to fit on aeroplanes.

“Apart from this, the freight charges have more than doubled. As a result, the country’s mango exports are lagging,” he added.

As a solution, he explained, “However, various local variety mangoes including Himsagar, Amrapali, and Haribhanga have a market demand in more than 41 countries of the world. So, the government should make a condition to Biman Bangladesh as well as foreign airlines for the allocation of some specific space for perishable export products.

Bangladesh Bank has fixed new incentive rates for 43 export products for the fiscal year 2024-25, including agricultural products such as fruits. The incentive rate has been adjusted to 10 per cent, increasing from the 15 per cent rate from last February.

EMAP for Mango

The Ministry of Agriculture has taken up the 'Exportable Mango Production Project (EMAP)' to increase mango exports. The project, for the period of 2022 to 2027, is being implemented in 46 Upazilas of 15 districts. Through this Tk 47 crore-worth project, relevant stakeholders such as the farmers, officials and beneficiaries' skills will be enhanced for quality mango production and conservation.

EMAP Project Director Mohammad Arifur Rahman made his point to The Business Post saying, “The task of our project is to increase exportable mango production and we are working towards that. If exports are hindered due to an increase in freight charges or problems in getting necessary space in the aircrafts, the exporters have to take the initiative to solve it.

“However, if they want the ministry’s help, we will help them. We will also talk to the commerce ministry if necessary,” he added.

He explained, “Once the production of exportable mangoes in the country was very low, it has been increased since last year. The government is working towards increasing mango exports; meanwhile, a Chinese delegation has recently visited various mango orchards in the country.”

He also noted that 15 diplomats from various countries have inspected the field-level mango production.

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