High yields, low exports: Why Bangladesh’s fruits and vegetables struggle globally

Agriculture has long been the backbone of Bangladesh's economy, contributing significantly to food security and employment.

Among its many subsectors, fresh fruit and vegetable exports hold immense promise.Yet, despite rising production and favourable conditions, exports remain underdeveloped due to infrastructural gaps, quality compliance issues, and limited market diversification.

Rising production, uneven exports

Over the past decade, Bangladesh has significantly increased fruit and vegetable production, driven by better farming practices and suitable weather. Potatoes, tomatoes, eggplants, okra, and beans dominate exports, alongside a growing range of fruits. Bangladesh is now among the world's top producers of several crops.

Yet export performance tells a mixed story. Vegetable exports peaked at $164 million in FY2019-20, dipped sharply to $61 million in FY2022-23, then rebounded to $112 million in FY2023-24, reflecting their sensitivity to global demand and logistics. Fruit exports have been far smaller but showed promise, surging from a low of $0.33 million in FY2018-19 to $29 million in FY2023-24, their best in a decade.

Most exports target Middle Eastern markets, driven by Bangladeshi diaspora demand, while new markets like the UK, Italy, and Malaysia are slowly emerging. However, despite high production, export volumes remain disproportionately low, revealing untapped potential.

Key barriers holding back growth

1. Poor infrastructure
Weak transport networks and inadequate cold storage cause delays, spoilage, and quality loss. Limited use of refrigerated trucks further harms competitiveness.

2. Quality compliance issues
Meeting strict international standards, especially in the EU and US, is a major hurdle. Pesticide residue, pest contamination, and weak traceability have led to shipment rejections. Adoption of Good Agricultural Practices (GAP) remains low due to insufficient farmer training.

3. Weak supply chains
Exporters often buy from wholesale markets, resulting in inconsistent quality and inflated costs. The lack of direct farmer-exporter ties hinders quality assurance and reduces farmers' share of profits.

4. Limited market diversification
Exports remain concentrated in a few vegetables catering mainly to ethnic markets. Competing exporters like India and Pakistan have more diversified portfolios and better market reach.

5. Poor post-harvest management
Manual sorting, grading, and packaging in informal markets lead to high wastage. Modern packing facilities and training are largely absent.

6. High airfreight costs
Bangladesh's limited cargo capacity and higher airfreight rates make its produce less competitive compared to India, Pakistan, or Thailand.

7. Bureaucratic delays and fragmented services
Exporters face delays in obtaining certifications, and key services—quarantine, testing labs, GAP certification—are scattered across different agencies, creating inefficiency and coordination gaps.

The way forward

Invest in infrastructure
Cold storage and reefer transport are vital to reduce post-harvest losses. Modern packing houses with grading and sorting systems can significantly improve export quality.

Boost farmer training and certification
Large-scale GAP training, proper pesticide use education, and certification programs are critical to meeting global standards and reducing shipment rejections. GAP-certified produce also commands better prices in markets like Europe.

Strengthen farmer-exporter linkages
Encouraging contract farming can eliminate middlemen, ensuring farmers get fairer prices while exporters secure consistent quality.

Diversify products and markets
Bangladesh should expand into high-value items like organic vegetables and target growing markets in Asia and Africa. Diversification reduces overreliance on diaspora demand and improves resilience.

Streamline regulation
Creating a one-stop export hub to centralize certification, testing, and treatment services would reduce delays and improve oversight. A centralized system would cut spoilage and help meet international standards more efficiently.

Lower logistics costs
Improved air cargo connectivity and negotiations for lower freight rates could enhance competitiveness, particularly for time-sensitive shipments.

Unlocking potential

Bangladesh's fruit and vegetable exports have the right foundation: favourable climate, strong production, and growing global demand. But without investments in infrastructure, compliance, and market expansion, this potential will remain unrealized.

With targeted reforms—cold chain upgrades, certification programs, direct supply chains, and streamlined bureaucracy—Bangladesh could transform its fresh produce exports into a thriving foreign currency earner and a new driver of economic growth.

The writer is Professor of Sher-e-Bangla Agricultural University and Registered Trainer of Global G.A.P.