Vegetable export to Gulf may stop due to fuel price hike
Jasim Uddin Haroon | Sunday, 27 July 2008
Country's fresh vegetable exporters, especially those who are supplying to the United Arab Emirates (UAE), are planning to suspend further export saying that trading with the Gulf countries will no longer be viable as the national airlines has recently increased the fuel surcharge.
Bangladesh Biman Limited, the country's national airlines, raised the fuel surcharge by US$ 0.05 per kg for fresh vegetables and $0.10 per kg for dry foods stuff since July 10.
Currently, the cost of freight, fuel surcharge and other charges totals $ 1.15 for exporting each kilogram of fresh vegetables.
"We are expecting to suspend vegetable exports to the Sharjah, Abu Dhabi and Dubai by next couple of days although we had earlier planned to stop supply of vegetables from today (Sunday), said Monsur Ahmed, general secretary of Bangladesh Vegetable and Allied Food Exporters Association (BVAFEA).
He also said that exporters continued to negotiate with the overseas buyers to increase the prices of vegetables in the wake of fuel surcharge.
Currently, the exporters are supplying vegetables to the UAE at a rate of 1.70 per kilogram. This includes all kinds of fresh vegetable.
Bangladesh exports around 200 tonnes of fresh vegetables each month to the mid-east countries and these are mostly consumed by the Bangladeshi expatriates.
The exporters, however, met Saturday at its office in the city on the issue and they all agreed to extend the deadline for suspension of exports, meeting sources said.
On the other hand, Biman official sources said the surcharge being charged by the national airlines is still lower than other airlines.
The British Airways imposed a $1.20 surcharge, Qatar Airlines $0. 60 and the gulf airline is planning to slap $0.80 as fuel surcharge from August 01, sources at the airlines told the FE.
Bangladesh exported $ 54.05 million during July-May, 2007-08, a 50.73 per cent growth over that of the corresponding period. Bangladesh exported $ 31.54 million during July-May in 2006-07 period.
Bangladesh Biman Limited, the country's national airlines, raised the fuel surcharge by US$ 0.05 per kg for fresh vegetables and $0.10 per kg for dry foods stuff since July 10.
Currently, the cost of freight, fuel surcharge and other charges totals $ 1.15 for exporting each kilogram of fresh vegetables.
"We are expecting to suspend vegetable exports to the Sharjah, Abu Dhabi and Dubai by next couple of days although we had earlier planned to stop supply of vegetables from today (Sunday), said Monsur Ahmed, general secretary of Bangladesh Vegetable and Allied Food Exporters Association (BVAFEA).
He also said that exporters continued to negotiate with the overseas buyers to increase the prices of vegetables in the wake of fuel surcharge.
Currently, the exporters are supplying vegetables to the UAE at a rate of 1.70 per kilogram. This includes all kinds of fresh vegetable.
Bangladesh exports around 200 tonnes of fresh vegetables each month to the mid-east countries and these are mostly consumed by the Bangladeshi expatriates.
The exporters, however, met Saturday at its office in the city on the issue and they all agreed to extend the deadline for suspension of exports, meeting sources said.
On the other hand, Biman official sources said the surcharge being charged by the national airlines is still lower than other airlines.
The British Airways imposed a $1.20 surcharge, Qatar Airlines $0. 60 and the gulf airline is planning to slap $0.80 as fuel surcharge from August 01, sources at the airlines told the FE.
Bangladesh exported $ 54.05 million during July-May, 2007-08, a 50.73 per cent growth over that of the corresponding period. Bangladesh exported $ 31.54 million during July-May in 2006-07 period.