Export of vegetables grinds to a halt

The country's exports of vegetables, fruits and betel leaf to European and Middle Eastern markets have remained suspended since May 1 following a sudden rise in freight charges of Bangladesh Biman Airlines.

Exporters claimed to have already lost businesses worth $5 lakh as they could not ship around 213 tonne goods in the last three days. They feared they may ultimately lose these markets to competitors like India and Malaysia if Biman fails to resolve the crisis immediately.

Biman authorities last Tuesday told The Daily Star that to make its freight charges for perishable items "cost-effective", the airline has increased the shipment charge of vegetable products by 25 per cent on an average.

Leaders of the Bangladesh Fruits, Vegetables and Allied Products Exporters' Association declined to pay the enhanced cargo rate, considering it is not cost-effective for exports.

"We met the state minister for civil aviation and tourism on May 1 and he advised us to resolve the issue through discussion with the Biman management," the association's Senior Vice President Md Mansur told The Daily Star on Tuesday.

An hour-long meeting on May 1 between the exporters' body and Biman's managing director, however, concluded without any resolution, he said.

The freight charge of vegetables to Dammam was increased from $1.12 to $2.12 per kilogram, to the UK, Italy, France and Germany from $1.55 to $2, and to Dubai and Maskat from $0.75 to $0.85.

"Importers in these countries told us that it would not be possible for them to market the vegetables, fruits and betel leaf exported from Bangladesh at higher prices to compensate for the increased cargo charge of Biman," said Mansur.

Biman officials concerned meanwhile argued that it is no longer possible for the financially strapped airline to incur further loss in ferrying perishable goods at a price that is not cost-effective. "We get $2.58 for carrying each kilogram of dry cargo.

Why should we then deprive ourselves of revenue by carrying perishable cargo at a much lesser charge?" said a Biman official requesting anonymity.

Biman claimed that its own aeroplanes carry 70 per cent exported vegetables from Dhaka, Chittagong and Sylhet while other airlines carry the rest 30 per cent. Exporters, however, refused to accept the claim, saying they completely depend on the national flag carrier for exporting as other airlines generally do not entertain perishable cargo.