Bangladesh’s fruits, vegetables exports plunge 68.7% in a decade

Bangladesh's fruits and vegetables exports have declined by a staggering 68.7% in the past decade, from $239.19 million in FY14 to $74.93 million in FY23, due to low competitiveness caused by high export costs, lack of good agricultural practices (GAP) and necessary infrastructures, according to the Bangladesh Fruits, Vegetables & Allied Products Exporters' Association.

Whereas the market share of the European market for these products has declined in recent years, it has increased in Middle Eastern countries.

A recent report by the association reveals that exports of these products to Europe accounted for 54.8% of the country's total exports of these products in FY14, but this share has steadily declined to 32% in FY23.

On the other hand, in FY23, 49% of total fruits and vegetables exports of the country went to the Middle East, which was 30.7% a decade earlier.

Exporters say these products from Bangladesh are still not exported to super shops in importing countries, but are instead exported to ethnic markets for Bangladeshi expatriates living abroad.

This is because Bangladesh does not have a system to store traceability of information from production to export of agricultural products, which is a major condition set by Europe for agricultural imports.

They also blame the lack of Good Agricultural Practices (GAP), efficient packaging, and technology to extend shelf life and remove bacteria as a hindrance to agricultural exports from Bangladesh.

In addition, exporters identified several major reasons for the declining exports, including the lack of a cooling house at the airport, scanner complications, the two-stage billing process for product scanning, and the decline in product quality due to delayed shipment.

The price of Bangladeshi agricultural export products to ethnic markets is higher than that of neighbouring India. This is because India can export by using seaports, while Bangladesh's only option is air freight, which is more expensive, said the exporters.

Md Mansoor, agricultural products exporter and general secretary of the fruits, vegetables exporters' association, told The Business Standard that Bangladesh's competitiveness in exporting agricultural products is far behind that of other countries.

"It takes four days to transport goods by sea from Mumbai, India, to Dubai, but 30 days to transport goods by air from Bangladesh to Dubai, as Bangladesh has no post-harvest management system," he said.

The association's advisor Md Monjurul Islam said agricultural exporters face problems at every step from production to shipment.

Bangladesh's agricultural exports typically include a variety of vegetables, fruits, and betel leaves.

More than 54 types of vegetables are exported, including bitter gourd, brinjal, bottle gourd, okra, French bean, green chilli, green papaya, green banana, radish, sweet potato, and cauliflower. Among the fruits, 34 types are exported, including jackfruit, pineapple, litchi, mango, star fruit, lemon, guava, and dragon fruit.

The exporters said that the main export destinations in Europe are the UK, Italy, Germany, France, Switzerland, Sweden, Denmark, Spain, Ireland, and Russia. The main export destinations in the Middle East are KSA, UAE, Kuwait, Qatar, Oman, and Bahrain. Some products are also exported to Canada, Malaysia, Singapore, and Sri Lanka.

Meanwhile, exports of agro and agro-processed products from Bangladesh also declined from $1,161m in FY22 to $829m in FY23. This decline was due to a number of factors, including the Covid-19 pandemic and the Russia-Ukraine war, say exporters.

High export potentials

The Vegetables & Allied Products Exporters' Association estimates that resolving the issues hindering Bangladesh's agricultural exports could increase demand in the ethnic markets alone to 70 lakh tonnes annually by 2030, from the current export volume of 90,000 tonnes. It also estimates that demand in super shops in export markets could reach 3 lakh tonnes.

The Department of Agricultural Extension is implementing a 5-year project to implement Good Agricultural Practices (GAP) on 3 lakh hectares of land in the country at a cost of Tk6,910 crore. This project aims to improve the quality and safety of Bangladesh's agricultural products, making them more competitive in the export market.

At the same time, the Bangladesh Institute of Nuclear Agriculture (BINA) is undertaking a project to build an e-radiation centre in Gazipur. This centre will use electron beam radiation to extend the shelf life of perishable agricultural products, reducing post-harvest losses.

BINA Director General Dr Mirza Mofazzal Islam told TBS that extending the shelf life of agricultural products will help to increase exports and contribute to the country's food security.

Stakeholders say the third terminal of Dhaka airport will feature cooling room facilities for exporters of perishable goods. The process of buying modern equipment for the Shyampur packing house in Dhaka is also underway.