Fruit, vegetables exporters urge govtCut cargo fares, allocate more space for fresh produce

Local exporters have requested the government to rationalise cargo fares and allocate more cargo space for exporting fresh vegetables and fruits, aiming to boost earnings from the sector.

The Bangladesh Fruits, Vegetables & Allied Products Exporters Association (BFVAPEA) has recently written to different state agencies, including the ministries of commerce and agriculture, and Biman Bangladesh Airlines, urging them to take the necessary actions to this end.

The association claimed that local exporters of vegetables, fruits, betel leaves, and other products have been facing several challenges, including sudden increases in cargo fares by Biman Bangladesh Cargo Authority and insufficient allocation of cargo space.

As a result, the export of these items has been steadily declining, with export volumes halving this year.

The association fears losing foreign markets for agricultural products to neighbouring countries such as India, Pakistan, Nepal, and Sri Lanka.

The exporters have called for aligning cargo fares with those of neighboring countries to address these issues immediately.

There is a demand for 300-400 tonnes of Bangladeshi vegetables, fruits, betel leaves, and other items in the global market. However, due to insufficient cargo space, meeting this demand has been challenging, they said.

In the last six months to August, cargo fares have increased threefold, rising from $1.00 to $2.70 per kilogram for transporting these items.

Currently, exporters face charges of $5.20 per kilogram for shipments from Dhaka to London, $3.65 per kilogram from Dhaka to Toronto, and $0.86 to $1.75 per kilogram for shipments to the Middle East, including Kuwait, Oman, Saudi Arabia, Dubai, and other countries.

Sector insiders said that the ready-made garments (RMG) sector receives more priority at the export cargo village, compared to agricultural items, despite the perishable nature of vegetables and fruits.

They pointed out that cargo charges for ready-made garments with Biman Bangladesh Airlines are comparatively lower than those of other airlines.

When contacted, Mohammed Monsur, General Secretary of BFVAPEA, said the government should promptly make cargo fares more reasonable to support the country's potential sector.

He noted that cargo fares have tripled over the past six months, from February to August, despite no increase in operating costs for Biman cargo or global fuel prices during this period.

The export volume of fruits and vegetables declined by more than 68.5 percent in the past decade, from over U$ 239 million in FY14 to US$74.90 million in FY23, according to the association.