Vegetable exporters facing difficulty due to fall of European currencies
Tuesday, 25 November 2008
FE Report
Around 500 vegetable exporters are facing difficulty in making shipment of the kitchen items to Europe due mainly to sharp fall of pound sterling and euro, coinciding with higher freight cost, vegetable exporters told the FE Monday.
Following huge losses, the vegetable exporters suspended their shipment to different destinations in Europe since November 22.
Vegetable exporters said they have been incurring losses worth Tk 20 for each kilogramme of vegetable export following sharp devaluation of pound sterling. The value of British pound against Bangladesh Taka has sharply fallen to Tk 102 from Tk 142.
"Our business in London and other European cities has fallen by almost 50 per cent due to drastic devaluation of pound and euro," said SM Jahangir Alam, president of the Bangladesh Fruits, Vegetables and Allied Products Exporters Association (BFVAPEA).
The value of euro against the Bangladesh currency was Tk 105 several weeks back and it now dropped to Tk 86.
Jahangir said local exporters suspended export of vegetables to the 'ethnic' markets in Europe after failing to increase prices of exportable vegetables in the wake of sharp devaluation of European currencies.
Jahagir also said airlines, especially the national flag carrier, have been charging higher freight though there has been a sharp fall in the prices of oil in the international market.
"Fuel prices have dropped by more than 50 per cent, but Biman has been charging previous fares to carry fresh vegetables," Jahangir alleged.
Md Abul Hossian, a vegetable exporter, told the FE that his company incurred loss of Tk 20 for each kilogramme of vegetable export.
He said: "I get Tk 180 for each kilogramme of vegetable export but I need Tk 200 for shipment of the same," Hossian, owner of Lee Enterprise, said.
Bangladesh exports over 100 varieties of vegetables to London, Rome, Frankfurt, Greece, Spain and some major cities of Europe and Bangladesh expatriates are the main consumers of the items.
Vegetable exporters said the market is being grabbed by some African nations including Ghana and Kenya as they are supplying the items at cheap rates due to low freight and currency adjustment by their governments.
Bangladesh exported vegetables worth US$ 60.47 million in 2007-08. Its exports were worth $15.92 million in July-September of the current fiscal against the target of $20.85 million, showing a 23.65 per cent decline from the target for the first quarter.
Around 500 vegetable exporters are facing difficulty in making shipment of the kitchen items to Europe due mainly to sharp fall of pound sterling and euro, coinciding with higher freight cost, vegetable exporters told the FE Monday.
Following huge losses, the vegetable exporters suspended their shipment to different destinations in Europe since November 22.
Vegetable exporters said they have been incurring losses worth Tk 20 for each kilogramme of vegetable export following sharp devaluation of pound sterling. The value of British pound against Bangladesh Taka has sharply fallen to Tk 102 from Tk 142.
"Our business in London and other European cities has fallen by almost 50 per cent due to drastic devaluation of pound and euro," said SM Jahangir Alam, president of the Bangladesh Fruits, Vegetables and Allied Products Exporters Association (BFVAPEA).
The value of euro against the Bangladesh currency was Tk 105 several weeks back and it now dropped to Tk 86.
Jahangir said local exporters suspended export of vegetables to the 'ethnic' markets in Europe after failing to increase prices of exportable vegetables in the wake of sharp devaluation of European currencies.
Jahagir also said airlines, especially the national flag carrier, have been charging higher freight though there has been a sharp fall in the prices of oil in the international market.
"Fuel prices have dropped by more than 50 per cent, but Biman has been charging previous fares to carry fresh vegetables," Jahangir alleged.
Md Abul Hossian, a vegetable exporter, told the FE that his company incurred loss of Tk 20 for each kilogramme of vegetable export.
He said: "I get Tk 180 for each kilogramme of vegetable export but I need Tk 200 for shipment of the same," Hossian, owner of Lee Enterprise, said.
Bangladesh exports over 100 varieties of vegetables to London, Rome, Frankfurt, Greece, Spain and some major cities of Europe and Bangladesh expatriates are the main consumers of the items.
Vegetable exporters said the market is being grabbed by some African nations including Ghana and Kenya as they are supplying the items at cheap rates due to low freight and currency adjustment by their governments.
Bangladesh exported vegetables worth US$ 60.47 million in 2007-08. Its exports were worth $15.92 million in July-September of the current fiscal against the target of $20.85 million, showing a 23.65 per cent decline from the target for the first quarter.