Vegetables shipment slumps on high prices

The export of vegetables has marked a sharp fall in the wake of spiralling prices of the agricultural produce on the local market, said market-insiders.
The export volume slumped by 37 per cent to $9.0 million in the September-October period of the current fiscal year (FY '18), compared with $13 million in the same period of the last year, according to the Export Promotion Bureau (EPB).
However, the total export of vegetables in the first four months (July-October) of FY '18 reached $26.8 million.
In the local market, the prices of vegetables ranged between Tk 60 (pointed gourd) to Tk 200 (coriander leaf) ($ 0.74 to $2.43) a kg, compared to the price range from Tk 40 to Tk 120 in the corresponding period of last year, according to the Department of Agricultural Marketing (DAM).
The DAM data showed that vegetables prices hit the record high in October following two spells of flooding.
"Shipments of vegetables to Europe have marked a gradual decline in the last few months as high prices of vegetables in the domestic market have discouraged traders from exporting the produce," said Shariful Islam Sourav, proprietor of Sohan Enterprise.
Green pumpkin of Bogra costs Tk 82-Tk 86 (above US$1.0) a kg at Shyambazar in Dhaka as freight and other charges are too high -- Tk 190-Tk 200 ($2.3-$ 2.4) a kg, he said.
"So, the price of one kilogram of vegetable is not less than $3.3, but buyers are offering us $3.0 to $3.2", he added.
Most of the exporters could hardly make profits even after having a 20 per cent cash incentive, he said.
However, many traders have been continuing exports even after incurring losses so that they do not lose regular buyers, he said.
Zahurul Islam, proprietor of Islam Enterprise, told the FE that skyrocketing prices of vegetables, higher freight charges and self-imposed restrictions by the plant quarantine wing (PQW) of Department of Agriculture Extension (DAE) have been hampering vegetable exports to EU countries.
He said Bangladeshi exporters are paying freight charges more than 50 per cent higher compared to that of India, Thailand and other countries.
The government should minimise shipment charges to boost exports, he added.
Mohammad Mansur, general secretary of Bangladesh Fruits, Vegetables & Allied Products Exporters' Association, said pumpkin and eddo of Bogra, bottle gourd of Sonargaon, clocasia stem of Comilla have a high demand in the EU.
Cucumber, bitter gourd, bean, jute leaf, drumstick, radish and other vegetables are being exported to ME countries, he said.
If such uptrend in prices continues for the next few months, it would be tough for exporters to meet the target of vegetable export -- $81 million -- in the current financial year.
Vegetables exports had witnessed a decline in the FY '17 to $ 80 million, compared to $104 million in FY '16.
The country fetched a record $ 148 million in FY '14 through exports of vegetables, according to EPB.

[email protected]