Flood, Covid deal double blow to veg, fruit export

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The ongoing flood and Covid-19 pandemic have caused a double blow to the exports of vegetable, fruits and other perishable items.

High freight charges of air cargo through the pandemic as well as sky-rocketing prices of veggies in the domestic market as a result of flood have severely affected the shipments, said insiders.

"The Europe-bound shipments have seriously been hampered because of the high air freight charges," Arif Azad Prince, managing director of Masawa Agro Ltd, told the FE.

He said that more than 90 % of the exports to the EU countries, especially to UK, are shipped by air. The freight charges increased to US$3.8 to $4.5 per kg through the pandemic in comparison with at best $1.8 a kg prior to the pandemic.

Besides, the costs of vegetables like brinjal, eddo, pointed gourd, teasel gourd, bitter gourd and pumpkin trebled in last one and half months in the domestic market.

"We have become less competitive in the EU region because of the higher air freight charges and pricier local produces," he said.

He said that it requires an exporter to invest Tk 500-520 to send per kg of brinjal to the EU while the Indian businesses can deliver it at 40 % less price than us.

Mr. Prince, however, said the freight charges of ocean-going vessels are almost static at $ 550 per container for countries like Malaysia.

He said that exports to non-European countries might remain normal this year amid rising demand for potato and cabbage.

According to him, the air freight charges have increased as a result of substantially reduced number of flights amid the pandemic.

In line with the Department of Agricultural Marketing (DAM), the costs of vegetables witnessed 60-80 % hike in the location in last one and half weeks.

The costs of some exportable items like brinjal have surged to Tk 80-100 a kg as a result of flood while eddo Tk 60-70, pointed gourd Tk 70, yard-long bean Tk 80-90, carrot Tk 100-110, tomato Tk120-130, leafy Tk 20-40 a bunch, said DAM.

The two-month long flood damaged a lot more than 10,000 hectares of veggie fields in 37 districts this season, said the agriculture ministry. The water-logging in lots of districts can be affecting early winter crops farming, it said added.
 
Bangladesh exports a lot more than 70 types of vegetables to 53 countries like Kingdom of Saudi Arabia, UAE, Singapore, Malaysia, Hong Kong, and UK, according to Bangladesh Fruit, Vegetable and Allied Products Exporters' Association (BFVAPEA).

President of BFVAPEA SM Jahangir Hossain said the Association has recently requested the Biman Bangladesh Airlines to start special air cargo service that could help raise the exports.

He said the demand for Bangladeshi produces is high this year in the global market but we couldn't fetch it amid higher air freight charges.

He said vegetable exports was only worth $7.0 million in July this fiscal year (FY) that was $ 19 million in the corresponding amount of the last FY.

The united states exported veggie, fruits, flower, foliage, tobacco, etc. worth $ 862 million in the FY 2019-20 that was $ 908 million in the previous FY, according to Export Promotion Bureau (EPB) of Bangladesh. 
Source: https://thefinancialexpress.com.bd

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