Agri exports hit hard as airfreight costs nearly double amid global conflict
Exporters say shipments have dropped sharply, while costs have become uncompetitive in global markets.
Bangladesh's export of vegetables, fruits, and processed agricultural products to the Middle East, Europe, and other destinations is facing severe disruption as cargo airfreight costs have nearly doubled following the ongoing war between Iran, the United States, and Israel.
Exporters say shipments have dropped sharply, while costs have become uncompetitive in global markets.
According to exporters, airfreight charges have surged across all major destinations. Shipping agri products to the Middle East now costs Tk180-280 per kg, up from Tk120-140 before the conflict. For Europe and the United Kingdom, the cost has jumped to Tk620-650 per kg from Tk400-450 earlier. Freight charges to other destinations have also nearly doubled.
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Prior to the war, it cost about $2,800 to ship a container of vegetables and fruits to the Middle East. Now, the cost has risen to around $6,200-6,400, making exports increasingly unviable.
Exporters also say securing cargo space has become significantly more difficult, further disrupting supply chains.
Export slump pushes farmers into losses
Mohammad Kanchan Mia, proprietor of Arot Agro BD, who exports vegetables, fruits, and dry foods to multiple regions including the Middle East, Europe, Malaysia, and Singapore, said his business has been severely affected.
He normally operates 9-10 shipments per month but managed only one potato container in March. "Due to the war, airfreight rates have increased so much that exports have almost dropped to zero," he said.
Mushtaque Ahmad Shah, proprietor & CEO of Shah Traders, said air freight charges have doubled within a month, making bookings nearly impossible. He added that exporters from India are not facing similar increases and continue exporting at previous rates. "If this continues, exports will fall to near zero. Our freight charges are being increased every few days," he said.
Md Shahid Sarker, another exporter, said Bangladesh is losing competitiveness. He noted export costs from India are Tk200-250 per kg and lower in Pakistan, while Bangladesh pays nearly Tk700 per kg.
"It is impossible to compete with them," he said, adding that products are now being sold at lower prices in the domestic market due to halted exports.
Mango export fears rise ahead of peak season
Bangladesh exports agricultural goods worth around $1 billion annually, but recent data shows a sharp decline. According to the Export Promotion Bureau, vegetable exports fell by 45% in March compared to last year. During the same period, dry food exports dropped by 19.40%, spices by 12.74%, and beverages, spirits, and vinegar by 34.36%.
Concerns are now mounting ahead of the May-September mango export season. Exporters say rising freight costs could severely impact shipments of mangoes and jackfruits, which are cultivated under strict Global Good Agricultural Practices (GAP) standards and have high production costs.
Mohammad Hafizur Rahman of the Bangladesh Fruits, Vegetables and Allied Products Exporters Association said exports have "almost come to a halt," adding that freight to London has reached nearly Tk600 per kg from under Tk400 earlier.
Mushtaque Ahmad Shah said Bangladeshi mangoes previously received strong demand, including at a fruit fair in Qatar, but current conditions have halted initiatives. "At current freight rates, it is simply impossible to compete with India and Pakistan," he said.
According to the Department of Agricultural Extension, mango exports stood at 2,194 tonnes last year, down from 3,100 tonnes in 2023 and up from 1,321 tonnes in 2024.
Officials say discussions with airlines and civil aviation authorities are planned ahead of the mango season to address cargo fare issues.
Abu Noman Faruq Ahmmed, professor at Sher-e-Bangla Agricultural University, warned that rising production costs combined with lack of export opportunities are discouraging farmers.
Prof Faruq, also a registered trainer of GLOBAL GAP, said without reducing freight costs, Bangladesh will struggle to remain competitive in global markets.
