Bangladesh’s agricultural product exports increased during the July-May period of the financial year 2023-24 compared to the same period of the previous financial year.

However, exporters expressed disappointment over the amount, stating that the export performance was below expectations.

Exporters cited several reasons for Bangladesh’s inability to fully realize its potential in the global agricultural export market, including a shortage of air cargo, excessively high freight costs, and increased production costs of vegetables.

They urged the government to ensure the availability of air cargo at competitive rates to maintain competitiveness, as competitor countries like India, Pakistan and Sri Lanka are capturing potential market share in the Middle East and the United Kingdom.

According to Export Promotion Bureau data, Bangladesh’s agricultural product exports in the 11 months of FY24 increased by 8.2 percent to $846.33 million compared to $782.19 million in the same period of FY23.

“We should not be complacent with the 8 percent growth in the sector. Instead, we must remember that export earnings from the sector exceeded $1 billion in FY21 and FY22,” said Mohammad Monsur, chairman of the FBCCI standing committee on import and export of fruits and vegetables, on Saturday.

Monsur observed that exports in the sector had been decreasing for the past three years due to a lack of adequate cargo space for perishable goods, high freight costs, a shortage of scanners at the country’s airports, and increased production costs of agricultural products.

Monsur, who is also the managing director of Monsur General Trading Company, claimed they were facing a severe shortage of cargo space as air shipments of readymade garments had increased in recent months due to the Red Sea crisis.

Additionally, he mentioned that Biman Bangladesh increased freight rates ten times in the past two months, with costs rising to $4.30 per kilogram from $2 per kilogram in February.

The EPB data showed that Bangladesh’s vegetable exports in July-May of FY24 increased by 52.23 percent to $88.92 million compared to $58.03 million in the same period of FY23.

Dry food exports in the period increased by 6.45 percent to $200.96 million.

The data also showed that the country’s fruit exports in the first 11 months of FY24 increased to $22.33 million from less than $1 million in the same period of the previous financial year.

Monsur noted that although the data showed a significant increase in fruit exports in July-May of FY24, the earnings mostly came from India, as exporters were forced to send mangoes, lychees, and jackfruits to India through land ports due to a lack of cargo space for exports to the UK and the Middle East.

He added that earnings could have increased if exporters could send the fruits directly to the European and Middle East markets.

Monsur also highlighted that Bangladesh had failed to gain its potential market share in the UK, Australia, Saudi Arabia, and the United Arab Emirates in vegetable exports, as competitor countries, including India, Pakistan, and Sri Lanka, were sending low-cost vegetables with lower freight costs than Bangladesh.

Government data showed that Bangladesh’s export earnings from vegetables in FY23 decreased to $61.14 million compared to $164 million in FY20. The country’s vegetable exports were at $99.91 million in FY22.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) recently urged the government to ensure sufficient air cargo capacity to expand the export of fruits, vegetables, and other agricultural products.