Despite growth, why are vegetables struggling to become Bangladesh’s next big export?
Bangladesh’s vegetable exports are on the rise, on track to cross $100 million this year. However, compliance, limited cold-chain infrastructure and reliance on expatriate demand continue to constrain its full potential
For years, Bangladesh's vegetable export has operated in the shadow of its own potential. The country grows a variety of produce, benefits from a loyal expatriate consumer base across the Gulf and Southeast Asia, and has gradually expanded its shipping infrastructure.
However, export earnings have struggled to break out of a narrow band. But this year, the scenario has changed. Export Promotion Bureau (EPB) data for FY26 shows a clear jump in vegetable exports.
Last year, the sector earned just over $81 million. But early numbers from this year paint a much brighter picture. Between July and November 2025–26, Bangladesh exported vegetables worth $37.48 million — up from $25.39 million in the same period last year, a rise of almost 48%.
Keep updated, follow The Business Standard's Google news channel
November 2025 showed a similar trend. Although exports slipped a bit from October — down from $6.15 million to $5.54 million — the numbers were still far stronger than the $3.69 million recorded in November last year. That's a year-on-year increase of just over 50%.
Much of this momentum comes from the fact that vegetable exporters value stability above anything else. The domestic vegetable market, which had long been plagued by erratic prices and recurring supply disruptions, has remained unusually calm.
Throughout FY25 and into the current fiscal year, market monitoring has significantly reduced price swings. When local vegetable prices stay predictable, exporters can plan shipments weeks in advance without fearing sudden cost spikes. This is perhaps the single biggest reason behind the current surge.
The transformation in logistics has also played a decisive role.
Fresh vegetables are often frozen and shipped to Europe and Africa using regular containers. Export-quality vegetables are sourced from across the country, including the Chattogram Hill Tracts, Jashore, Rajshahi, Chuadanga, Rangpur, Thakurgaon, Meherpur, and Narsingdi.
In FY25, maritime shipments of vegetables through Chattogram nearly quadrupled, exceeding 58,000 tonnes. Potatoes dominated the volume, but fresh vegetables such as cabbage, taro, pumpkin, gourd and beans increasingly found their way into refrigerated containers bound for Malaysia, Singapore, the UAE and Saudi Arabia.
This shift away from expensive, unreliable air freight has changed the economics of vegetable exports. Earlier, exporters had no choice but to use costly cargo flights, often paying twice as much as regional competitors. Now, they can send larger volumes by sea at a much lower cost.
According to agricultural economist Jahangir Alam Khan, this year, vegetable production has been strong, and prices have remained reasonably stable. At these price levels, he believes Bangladeshi vegetables are likely to remain competitive in foreign markets.
"Competitiveness and price will be the key factors, and on top of that, the Bangladesh government is still providing a subsidy of around 10% to 20%," he added.
"Taking all of this into account, it is quite likely that exports will cross the $100 million mark this year, which would be entirely natural given the circumstances. The business outlook is positive and favourable, making export targets more achievable. If good agricultural practices and proper certification are maintained consistently, this growth will be sustainable," he noted.
Mahbub Rana, president of the Chattogram Fresh Fruits, Vegetables and Products Exporters' Group, told TBS that local market instability in recent years had made exports unviable.
"The high price of potatoes and volatile vegetable prices deterred exporters. With those issues resolved, exports have picked up again," he added.
Challenges holding the sector back
Even so, the sector remains vulnerable. Vegetable exports are highly sensitive to unexpected shocks. A cyclone, an early flood, or a sudden surge in local demand can instantly derail export commitments. The winter and early spring months are traditionally the busiest for shipments, but they are also the most prone to weather fluctuations. Any disruption in supply can throw the numbers off track.
Quality control and compliance continue to challenge exporters, especially those targeting high-value markets. The memory of the European bans on betel leaf from 2014 to 2021 is still fresh. Although the Gulf and Southeast Asian markets are more forgiving, they too have tightened their sanitary and phytosanitary requirements in recent years.
"We can't fully utilise our export potential due to limited air cargo space. Transporting vegetables to Europe or North America costs Tk650–700 per kg from Bangladesh, while India manages it for Tk300 or less. Besides, subsidies are shrinking and are expected to be phased out by 2026. If the government prioritises this sector, vegetable exports could grow several times over."
A single compliance failure at a packing house, or a shipment with excessive pesticide residue, can trigger immediate restrictions. Exporters have repeatedly warned that Bangladesh's testing and certification systems must be strengthened to prevent such disruptions.
There are deeper structural issues as well. The cold-chain network remains thin, especially outside Dhaka and Chattogram. Many exporters still rely on overnight transporting of produce from distant districts, hoping to beat traffic congestion and get their goods to port before deterioration. Reefer vans are scarce. Modern packing houses are too few to meet the growing demand, and those that do operate cannot always guarantee the level of traceability required by high-end international buyers.
Beyond logistical bottlenecks, the sector still depends overwhelmingly on expatriate demand. Most of the vegetables Bangladesh exports — potatoes, brinjals, gourds, chillies, beans — cater to ethnic markets rather than mainstream retail consumers abroad. That limits the unit value of the exports and exposes the sector to shifts in migrant populations.
Bangladesh will need to capture mainstream supermarket shelves in Malaysia, Singapore, Italy and Canada if it hopes to sustain yearly earnings above one hundred million dollars. That will require a level of compliance, packaging and branding the sector has not yet mastered.
Mahbub Rana believes that we cannot fully utilise our export potential due to limited air cargo space.
"Transporting vegetables to Europe or North America costs Tk650–700 per kg from Bangladesh, while India manages it for Tk300 or less. Besides, subsidies are shrinking and are expected to be phased out by 2026. If the government prioritises this sector, vegetable exports could grow several times over," he noted.
If Bangladesh finally crosses that threshold, the achievement will be significant. But the greater challenge will be ensuring that $100 million becomes the new floor — not the ceiling.
