Potato exports halve as Mideast war drives up shipping costs

Highlights:

• Bangladesh's sea-borne potato exports fell 49% in FY26
• Export earnings dropped 37.8% to $8.89 million
• Container freight costs nearly quadrupled amid geopolitical disruptions
• Malaysia and Nepal remained the largest export destinations
• Competition from Egypt and Syria further weakened Bangladesh's exports
• Exporters seek better storage, cold chains and lower shipping costs.

Bangladesh's potato exports through the sea route nearly halved in the 2025-26 fiscal year as the fallout from the Middle East war pushed up shipping costs, making shipments less competitive in international markets.

Potato shipments through the country's premier seaport fell by 19,939 tonnes year-on-year, a decline of 49%, according to data from the Plant Quarantine Centre at Chattogram Port.

Foreign exchange earnings from potato exports also dropped by $5.41 million, or 37.8%, during the period, according to Export Promotion Bureau (EPB) data.

Exporters said container freight rates have increased nearly fourfold amid disruptions caused by geopolitical tensions, sharply raising the cost of shipping agricultural products over long distances.

Infograph: TBS

According to the Plant Quarantine Centre, Bangladesh exported 40,543 tonnes of potatoes through Chattogram port in 2024-25 fiscal year (FY25). The volume fell to 20,604 tonnes in FY26.

Export data shows Bangladesh earned $14.30 million from potato exports in FY25, which declined to $8.89 million in the following fiscal year.

Mahbub Rana, president of the Chattogram Fresh Fruits, Vegetables and Products Exporters Association, told TBS that the ongoing Iran war and the broader global situation have caused shipping costs to rise abnormally.

"Earlier, the freight for a container was around $2,500. Now it has risen to nearly $10,000," he said, adding that the sharp increase in transportation costs has made potato exports increasingly difficult for exporters, resulting in lower shipments.

According to Rana, Bangladesh mainly exports potatoes to Middle Eastern countries and Malaysia. However, bumper potato production in Egypt and Syria can also affect Bangladesh's exports, as these countries supply larger volumes to Middle Eastern markets when domestic harvests are strong.

"Alongside higher transportation costs, competition in the international market is another major reason behind the decline in Bangladesh's potato exports," Rana said.

Higher freight costs have raised exporters' overall expenses while making it difficult for them to maintain competitive prices and demand in overseas markets, he said. 

Exporters said most potatoes come from Munshiganj, Rangpur and Bogura. Farmers typically harvest and supply potatoes in January and February, after which exports continue regularly until July.

However, potatoes kept in storage often begin sprouting during the last six months of the year, affecting their quality and making them unsuitable for export.

Exporters therefore believe modern storage and agro-processing facilities are needed to sustain exports year-round.

Exporter Md Forkan told TBS that maintaining the cold chain is one of the biggest challenges in potato exports. After potatoes are taken out of cold storage, grading, processing and packaging can take considerable time.

During this period, potatoes remain at normal temperatures, making it difficult to preserve their quality even after they are loaded into refrigerated containers, he said.

The exporter said the problem could be reduced significantly if potatoes could be loaded directly into reefer containers from cold storages.

"This would require simplifying customs and quarantine procedures. If necessary, inspections and required tests could be conducted at the cold storage facilities," he said.

Malaysia remained Bangladesh's largest potato export destination in FY26, receiving potatoes worth $3.68 million. Nepal ranked second, with exports worth $3.52 million.

Other major destinations included the United Arab Emirates at $767,604, Saudi Arabia at $282,366, Singapore at $224,704, Myanmar at $141,386 and Sri Lanka at $90,159.

Bangladesh also exported potatoes worth $66,160 to Bahrain, $59,440 to the Maldives, $24,575 to Benin, $21,907 to Brunei, $8,404 to Qatar and $7,421 to Kuwait during the fiscal year.

In FY25, Malaysia accounted for the largest share of Bangladesh's potato exports, with shipments worth $7.32 million. Exports to Nepal amounted to $2.38 million, followed by the UAE at $1.56 million, Sri Lanka at $1.41 million, Singapore at $554,718 and Myanmar at $507,566.

During the same period, exports to Saudi Arabia stood at $321,063, Bahrain at $113,789, Brunei at $94,884, Qatar at $19,813, the Maldives at $13,360 and Kuwait at $8,369.

Subal Chakma, deputy director of the Export Promotion Bureau's Chattogram office, told this newspaper that the agency has no specific explanation or assessment for the decline.

He said they primarily collect data from different sources and publish it on its website, while their role does not extend to providing independent observations on specific export trends.

Exporters fear that if geopolitical conflicts persist and maritime transport costs remain high, maintaining Bangladesh's position in international potato markets will become increasingly difficult.

They said reducing transportation costs, increasing export support and developing new markets would be crucial to improving the competitiveness of Bangladeshi potatoes.

Historical data also show considerable fluctuations in sea-borne potato exports. Bangladesh exported 54,527.109 tonnes through Chattogram Port in FY22, but the volume fell to 29,560.297 tonnes in FY23 and further to 11,179.660 tonnes in FY24.

Exports rebounded strongly in FY25, reaching 40,542.929 tonnes. However, that recovery could not be sustained, with exports falling by nearly half in the following fiscal year amid rising shipping costs and intensified competition in overseas markets.