Fresh vegetable and fruit exporters in Bangladesh are concerned about a decline in sales following a significant increase in air cargo fares by Biman Bangladesh Airlines, which raised rates by 56% to 150% in August compared to six months ago. Exporters now face costs of $0.86 to $1.75 per kilogram to the Middle East, up from $0.55 to $0.70 in February. On the Dhaka-London route, fares jumped 143% to $3.65 per kilogram. The Bangladesh Fruits, Vegetables and Allied Products Exporters Association warned that this hike could severely impact exports, which have already been declining for three years. In FY24, Bangladesh exported 49,000 tonnes of fresh produce, down 8% year-on-year, with earnings falling 11% to $75 million. The association fears losing market share to India, Nepal, Pakistan, and Sri Lanka due to higher freight costs. While Biman claims its rates are still lower than other airlines, it handles only 15% to 17% of airfreight exports, using passenger flights for cargo. The exporters are calling for more reasonable airfreight rates to remain competitive in the global market.
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