Air cargo space constraint hits agro-exports to EU, ME markets

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FE Report
The export volume of country's agro-products to the European Union (EU) and Middle East (ME) markets declined by about 50 per cent during the first two months of the current fiscal due to lack of cargo space in aircraft, sources said.
In July-August period of the current fiscal, the export earning from agro-products stood at about $8.0 million while it was nearly $15.5 in the last fiscal.
Bangladesh's earning from export of agricultural products fell by 32.45 per cent to $87.82 million against the strategic target of $130 million in fiscal 2006-07.
The export earning in 2005-06 was $ 94.47 million.
"Shortage of cargo space is basically responsible for the poor performance,", SM Jahangir Hossain, president of Bangladesh Fruits Vegetables and Allied Products Exporters Association (BFVAPEA), said.
The fare charged by the foreign airlines is higher than that of national aircraft carrier, he said, adding they are now under pressure from overseas buyers to supply products at competitive prices.
BFVAPEA president said fresh investment in country's agricultural sector is unlikely if steps are not planned from now on to remove the problems that are impeding the growth of this sector.
General Secretary of the BFVAPEA Md Mansur said Bangladesh Biman usually transported about 90 per cent of the total export consignments. The export has suffered after Biman downsized its operation to some Middle East countries.
"We have been supplying much lower quantity compared to the orders from overseas buyers due to the cargo space problem," BFVAPEA general secretary added.
"Certainly, the overseas buyers will go to other markets if we to supply in due time," one vegetable exporter said.
Currently, he said India, Pakistan, Nepal, Ghana and other developing countries are exporting increased volume of vegetables to the markets.
BFVAPEA general secretary urged the government for its intervention to introduce at least three cargo flights in a week from Dhaka to London via Dubai or any other strategically important Middle East countries to help exporters achieve the target.
Local exporters said out of the total Tk.5.0 billion export market, the European market accounts for 50 per cent while Middle-east for the remaining portion.
Bangladesh can expand its market share creating more opportunities for the exporters, they said.
The country exports different kind of vegetables to Europe and Middle East where Bangladeshi expatriates are the major consumers.
Sources in the Export Promotion Bureau said export fell drastically in the first two months but it is not for space shortage but also due to increase in local consumption.