After making all-time high export earnings from potato shipments in last fiscal year (FY), 2020-21, the traders concerned are now struggling hard to maintain the same growth in this FY amid shortage of vessels as well as notable hike in freight charges, said insiders.
Despite stoppage of export to Bangladesh's previous major market Russia, the local companies were able to fetch a record amount of US$ 50.6 million by shipping more than 64,773 tonnes of potato in FY 21, thanks to finding new markets like Malaysia, Sri Lanka and Singapore.
The year showed a more than 117 per cent growth (value) in potato export over that of FY 20, when a total of 44,940 tonnes of potato worth $23 million were exported.
The previous record of top earning from the agriculture sub-sector was $33.8 million in FY 14 following shipment of the highest 1,02,000 tonnes of potato, according to the Export Promotion Bureau (EPB) and the Plant Quarantine Wing (PQW) under the Ministry of Agriculture.
Meanwhile, Malaysia has emerged as the biggest importer of Bangladeshi potato with more than 50 per cent of the total shipment to the country, while Sri Lanka is now the second top destination, said PQW additional director (export) Dr Md Rezaul Karim.
But potato export is showing a declining trend, as only 12,447 tonnes worth $10.5 million were exported in July-January period of this FY, against nearly 37,500 tonnes worth $30 million in the corresponding period of FY 21, according to the EPB and PQW.
The country's leading potato exporter Arif Azad Prince said the positive thing in FY 21 was that local traders were able to fetch handsome price for their potatoes, mostly collected from the northern and north-western districts.
"There is also a huge demand for potato across the globe. But now we can't supply as per the demand amid shortage of vessels as well as 60-100 per cent increase in freight cost," said Mr Prince, also managing director of Masawa Agro Ltd, one of the country's leading vegetable and potato exporters.
Freight cost for each container (28 tonnes) of potato or cabbage is $800-1,200 from the beginning of this FY, which was $500-600 earlier for Malaysia-bound consignments.
"But despite the shipping cost hike, the export will increase notably from this month amid harvest of suitable seasonal crops as well as rise in global demand," he added.
Zonaid Hossain Byron, proprietor of Lasker Trading - another leading potato exporter, said freight charge for the Colombo Port-bound ships increased by 400 per cent to $2,700-3,000 per container in February.
Apart from Malaysia and Sri Lanka, Nepal is also buying a notable quantity of potato from Bangladesh.
"My company has already sent 3,000 tonnes of potato to Nepal in January and February."
Another 2,016 tonnes would be shipped to Sri Lanka soon, he noted.
Mohammad Faruk, office in-charge of Atlantic International at Chittagong Port, told the FE that ship fares increased globally.
There is a shortage of ships, dedicated to transporting agricultural products, as most of the vessels are now busy in carrying Europe-bound ready-made garments (RMG).
He said freight charge for Europe-bound per two TEUs (forty-foot equivalent units) RMG increased to $15,000 in this FY from maximum $6,000 earlier.
Malaysia and Sri Lanka are now importing most of the Bangladeshi potatoes, but the number of vessels on Malaysia route declined by more than by 70 per cent in recent times.
Maersk is now providing four vessels per month on the route, and Gold Star and OCCL two vessels each, Mr Faruk noted.
The Chittagong Port Authority (CPA) can make available some more vessels, if they manage the Singapore-bound ships to dock in Port Klang in Malaysia before moving to other destinations, he opined.
Bangladesh is the eighth largest potato producer in the globe with more than 10.0 million tonnes of output. It has a surplus of 2.0 million tonnes of potato.
