Vegetable exports fail to grow due to weak diversification of basket and market
Export Promotion Bureau data show that vegetable exports earned $88.88 million in FY26, up 9.57% from $81.12 million a year earlier. But this is $14.36 million below the $103.24 million earned in FY15
Highlights:
- Vegetable exports rose 9.6% in FY26, below FY15 peak
- Exports rely heavily on expatriate markets, limiting broader global growth
- Poor product diversification restricts access to mainstream international supermarkets
- Food safety, traceability, and pesticide compliance remain major export barriers
- High freight, packaging, and cold-chain costs reduce competitiveness
- Exporters seek continued incentives to sustain growth and expand markets
Bangladesh's vegetable exports rebounded in FY26, but it remains below the export earnings it achieved a decade ago, exposing persistent weaknesses in diversification of both market and products, food-safety compliance and logistics.
Export Promotion Bureau data show that vegetable exports earned $88.88 million in FY26, up 9.57% from $81.12 million a year earlier. But this is $14.36 million below the $103.24 million earned in FY15.
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The gap is striking because vegetable production and domestic consumption have expanded sharply over the past decade. The question, therefore, is not whether Bangladesh can produce more vegetables, but why it has failed to translate that capacity into sustained export growth.
GM Monirul Alam, a teacher of Gazipur Agricultural University's Agribusiness department, said vegetables have become a profitable short-duration crop, encouraging farmers to expand production as domestic demand has also grown.
"The real question is not why production has increased, but why exports have failed to keep pace," he said.
The exports remain heavily dependent on expatriate consumers in the Middle East, Europe and other markets with sizeable Bangladeshi and South Asian communities, he said. Gourds, brinjal, chilies, beans, and leafy vegetables are largely sold through ethnic shops rather than mainstream supermarkets.
"Our export market has largely grown alongside the expatriate population. At the same time, we have failed to diversify into new international consumer markets," he said.
There is demand in international markets for products such as cherry tomatoes and specialty vegetables, but the export basket remains insufficiently diversified, Monirul said.
Md Hafizur Rahman, secretary of the Bangladesh Fruits, Vegetables, and Allied Products Exporters' Association, said the FY26 increase was not driven mainly by stable domestic prices or a major expansion of sea freight.
He attributed the increase mainly to exporters' initiatives and support from the Department of Agricultural Extension, including the Plant Quarantine Wing, as well as the agriculture and commerce ministries.
"There has always been demand for Bangladeshi agricultural products abroad, but our exports remain far below actual demand," he said.
Sea freight remains limited because fresh vegetables and fruits are highly perishable. Small volumes of cabbage, cauliflower and carrots are shipped to Malaysia, while potatoes are exported to Sri Lanka. Although cheaper, air cargo's long transit times make it the main option for most fresh produce.
The main constraints begin at the farm level.
Md Farhad Hossain, managing director of Trade Fusion Ltd, which exports potatoes and other fresh produce, said farmers often lack awareness of international production and harvesting standards.
Citing weak control of chemical residues, limited automated grading facilities and inadequate knowledge of export-quality potato production as key procurement challenges, he said shortages of modern cold storage, difficulties in maintaining quality during transport and high costs for international-standard packaging add to exporters' costs.
Exporters usually buy through traders and aggregators instead of organised farmer groups. Produce from several farms is often mixed before reaching packing houses, making it difficult to verify pesticide use, fertilizer application, and harvesting dates.
Gazipur Agricultural University teacher Monirul said compliance with good agricultural practices, traceability and maximum residue limits are now essential for entering high-value markets.
"Many farmers harvest vegetables immediately after applying pesticides without observing the required pre-harvest interval," he said. "This can result in excessive chemical residues that exceed internationally accepted limits."
Farmers often do not keep records of pesticide or fertilizer use, making traceability nearly impossible. Small-scale farming and rising pest attacks linked to climate change have further encouraged indiscriminate pesticide use, he said, adding that the shortage of laboratories and the high cost of testing are another major bottleneck.
The expert said freight charges for fresh vegetables and fruits sent from Bangladesh to Europe and North America are about 30% higher than those of neighbouring competitors.
He called for freight charges to be aligned with regional competitors and said transport subsidies could help narrow the gap.
Monirul also identified sanitary and phytosanitary compliance, traceability and costly imported packaging materials as major barriers to entering mainstream supermarkets.
Exporters are concerned about the future of government cash assistance.
Regarding this, he said its withdrawal could leave many small and medium exporters facing serious losses or closure.
He suggested retaining cash assistance at least at its previous 20% level while offering duty-free import facilities for packaging materials, incentives for cold-chain investment and support for air transport.
