Within a span of just six months, the cost of exporting vegetables and fruits from the country has surged by two to three times despite no increase in fuel or operating costs during this period.
As a result, Bangladesh is losing its competitive edge in the agricultural export market over competing countries.
Over the past five years, exports of vegetables and fruits from the country have plummeted to less than half of their previous level. Exporters warn that if such a downtrend continues, the country's export industry may face trouble.
Biman Bangladesh Airlines has blamed the influence of foreign airliners for rising freight charges, claiming that they control cargo transport rates and the market.
Due to perishable goods such as vegetables and fruits, air transport is the preferred method of export. However, a limited number of flights operated by Biman Bangladesh Airlines often does not keep enough cargo space for export goods, forcing exporters to rely on
foreign airlines.
Recently, the steep hike in airfreight cost has put exporters in a dire situation. They said that freight charges have doubled or tripled in the past six months, particularly for routes to Europe and Canada. Comparatively, countries like India and Nepal have significantly lower freight costs, making it difficult for Bangladeshi exporters to stay competitive.
For instance, the cost of airfreight on Dhaka-London route was between $1.50 and $2 per kilogram in February. It has now increased to $4.10 per kilogram. Similarly, the cost of shipping vegetables to Canada has risen from Tk 333 per kilogram to Tk 625.
In the Middle East, rates have increased by Tk 80 to Tk 125 per kilogram. As a result, Bangladeshi exporters are losing their competitive edge over India, Thailand, Nepal, and Vietnam as they are unable to meet the demand and quality standards of foreign buyers.
General Secretary of Bangladesh Vegetable and Fruit Exporters' Association Mohammad Mansur said, “Operational costs for airlines have not increased while fuel prices have remained stable in the international market. So, why are we seeing a 200-300 percent increase in freight charges?"
Exporters also claim that even after booking space, airlines frequently fail to ship vegetables due to space constraints. If exporters miss scheduled flights, the quality of goods deteriorates, then buyers reduce their prices, they added.
In the fiscal year 2017-18, Bangladesh exported vegetables worth $182 million. It exported vegetables worth only $75 million in the fiscal year 2023-24. Additionally, exporters from Chattogram are suffering more losses as they have to transport their produce to Dhaka due to a lack of direct flights from Chattogram Airport.
Mohammad Forkan Rubel, a vegetable exporter in Chattorgam said, “We used to export 18-19 tonnes of vegetables daily to the Middle East from Chattogram. Now it’s only 1-2 tonnes per day.”
Public Relations Officer of Biman Bangladesh Airlines Bosra Islam said, “Freight charges are determined based on the market demand, and foreign airlines largely control the pricing structure. We have to adjust our rates accordingly.”
Bangladesh currently exports vegetables and fruits to over 40 countries. Around 9 million Bangladeshis living abroad are primary consumers of these products.
