PROSPECT OF EXPORT OF HORTICULTURAL COMMODITIES FROM BANGLADESH

PROSPECT OF EXPORT EXPANSION

World Demand

International trade in horticultural produce is growing rapidly. The import of horticultural produces in industrially developed countries' increased with the development of transportation and rising income. Horticultural markets are very much demand-specific. Therefore, exporting countries need different marketing channels to meet each importing country's specific demand in terms of appearance, size and time. Exporting countries also need sophisticated marketing research skills to identify the specific demand features of importing countries in order to produce the specific crops that meet their demand. World demand of fresh or processed horticultural product is increasing day by day. We need to produce quality products ensuring regular supply to enter the export markets. Compared to India, Bangladesh has an advantage that it does not have to pay import duties on horticultural produce in the EU countries. It is essential to invest in "EU standard" post-harvest facilities without which exporters will continue to lose money in exporting their produce to EU countries.

Bangladesh's Comparative Advantage

Bangladesh is well suited to the production of horticultural crops because of favorable climate and soils -tropical climate with no frost, plenty of rain and abundant water. Most of the land is fertile and comprises flood rich soils of the alluvial delta of the three large rivers. Along with favorable climate and soil, availability of inexpensive agricultural labor and a long agricultural background of the population also contribute favorably towards the comparative advantage that Bangladesh enjoys in this sector.

Export Potential of horticultural commodities

Fresh Produces

The experience of Hortex Foundation shows that with the improvement in the handling, packaging and cooling system, there seems to be a bright prospect for augmenting horticultural export from Bangladesh in future. From the experiences of Hortex Foundation, BRAC as well as Bangladesh Fruits, Vegetables and Allied Products Exporters' Association and also on the assessment of market trends, market demands, market access requirements and consumer preferences, the horticultural crops of exotic and Asian varieties appear to have high export potential are presented in Table 9.

CONCLUSION

The growth potential of horticultural sector in Bangladesh is higher than any other export sectors at the moment. But in spite of the high potentials, development in this area are still very slow and exporters are operating at low efficiency levels due to the diversified nature of problems associated with horticultural export.

Given necessary support to address the problems confronting the sector, Bangladesh can appear as a dependable and competitive supply source of different horticultural commodities for both ethnic and mainstream export markets.

It is, therefore, high time for the development of the agro-processing industry especially different horticultural industry to avail of the growing market opportunities abroad. These industries would generate demand for horticultural output thereby stimulating agricultural growth. It would also help income and employment generation and through value-addition process, would contribute significantly to the country’s over all economic growth.

RECOMMENDATION

Ø   Government should setup export processing zones especially for horticultural products, arrange export fair and export-import policy should be simplified for tax free production material and equipment import.

Ø   The required infrastructure (particularly cool chain) for export facilitation should be created on priority basis through the programmes of HORTEX and EPB.

Ø   Growers should be organized in the form of cooperatives to enter into the marketing channel.

Ø   To promote horticultural exports, the national carrier (Bangladesh Biman) should make available adequate cargo space on sectors connecting the major markets regularly and also provide freight concessions.