This document is a letter submitting an assignment on the export performance of vegetables from Bangladesh. It includes an acknowledgement section thanking those who provided information and assistance. The document then provides a table of contents and sections on export processing, statistics on vegetable exports, production costs, pricing and other costs, problems with export, and conclusions and recommendations. It finds that Bangladesh has potential for exporting vegetables due to demand, but exports face issues that need to be addressed such as improving quality, packaging, and transportation infrastructure in order to better access foreign markets and increase foreign exchange earnings.

1. 1
Letter of Transmittal
July 20, 2014
Md. Shak Forid
Assistant Professor
School of Business
Ahsanullah University of Science & Technology
Subject: Submission assignment on “Export performance of vegetables.
Dear Sir,
Here is the assignment that we assigned on the topic as per your request. The assignment has
been completed by the knowledge that we have gathered from the course „Export- Import
Management”.
I am thankful to all those who provided us important information and gave me valuable
advices. We would be happy if you read the report carefully and I shall be trying to answer
all the questions that you have about the assignment.
I have tried our label best to complete this assignment meaningfully and correctly, as much as
possible. We do believe that our tiresome effort will help you to get ahead with this sort of
venture. In this case it will be meaningful to us. However, if you need any assistance in
interpreting this assignment please contact me without any kind of hesitation.
Sincerely yours
Manas Saha
ID: 11.01.02.102

2. 2
Acknowledgement:
I would like to express my special appreciation and thanks to my course Assistant Professor
Md. Shak Forid, you have been a tremendous mentor for me. I would like to thank you for
encouraging my assignment. Your advice on both assignments as well as on my career has
been invaluable.
We would like to give special thanks to Mr. Rahim Talukder, chairman of vegetables export
of Bangladesh. Furthermore I would also like to acknowledge with much appreciation the
crucial role, who gave the permission to use all required equipment and the necessary
materials to complete the task. I would also like to thank to my team mate, who help me to
assemble the parts and gave suggestion about the task.

3. 3
Table of Contents
No. Content Page
Abstract……………………………………... 01
1.0 Introduction………………………………….
1.1 Collection of data……………………………
01
02
2.0 Export Processing…………………………...
2.1 Export Transportation……………………….
2.2 Statistics of Vegetables Export………...........
Table-1………………………………………
02
02
02
03
3.0 Cost of vegetable production……………….
Table-2………………………………………
3.1 Pricing and Costing …………………………
3.2 Other Cost………………………………………
Table-3………………………………………
03
03
04
04
04
4.0 Problem in Export…………………………. 05
5.0 Conclusion………………………………….
5.1 Recommendation…………………………...
06
06
Reference…………………………………... 07

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Abstract
Bangladesh exported vegetables, including bitter gourd, brinjal, okra, bean, green chili,
cauliflower, worth over Tk 750 crore between July and May, which is 42.48 percent higher
than in the same period a year ago, according to Export Promotion Bureau. Bangladesh has
immense prospect for exporting vegetables to the world market and it has also produced high
quality exportable fresh vegetable. Although the share of export earning in vegetables is
increasing day by day but export is constrained by several issues. Thus the present study was
undertaken to determine the value addition, cost and return of vegetables production and
export at different levels and also suggest some policy implication for improving the present
system. The study was based on both primary and secondary data. The sample included
vegetables producer, suppliers, and exporters.
1.0 Introduction
Bangladesh is predominantly an agricultural country. Agriculture plays a dominant role in its
economy in terms of sustainable land management, food security, value addition, and
employment and export earnings. Agriculture is the single largest land resource exploring
sector. In recent years, More than 100 vegetables are produced represented by different
species and varieties. Some major vegetables are egg plants, cucurbits, yard long bean, okra,
radish, cauliflower, cabbage, tomato, beans, aroids, carrot, leafy vegetables etc.
Farmers of Bangladesh are traditionally skill, hardworking and experienced. So, many
develop countries like Malaysia, Korea & Middle East countries are importing skill farmers
from Bangladesh for producing their Agro product with low cost. Different areas of
Bangladesh contain different types of soil which are well suitable for producing different
Agro products. Since, in Bangladesh six seasons run, therefore in different season grows
different kinds of Agro products which are suitable for world‟s export market.
The most common and demandable Bangladesh origin Fresh Vegetables are: ♦ Teasel Gourd
(Kakrol) ♦ Bitter Gourd (Korola) ♦ Parval (Potol) ♦ Bottle Gourd (Laow) ♦ Staring Bean
(Borboti) ♦ Sword Bean (Shim) ♦ Ladies Finger (Dherosh) ♦ Sponge Gourd (Parul) ♦ Ribbed
Gourd (Zhinga) ♦ Sweet Gourd (Misti Komra) ♦ Eddo Root (Kachur Chora) ♦ Potato (Aalo)
♦ Green Papaya ♦ Carrot (Gajor) ♦ Tomato ♦ Cabbage ♦ Cauliflower ♦ Green Chilli ♦ Fresh
Coriander leafAt present those vegetables mostly are exported to U.K. & Middle East
countries by Air Shipment & by Sea shipment to SINGAPORE, MALAYSIA, SRILANKA,
UAE, SAUDIARABIA, OMAN, VIETNAM, PHILIPINE & RUSSIA countries. Besides
those vegetables, buyers/Importers of any country if wants to import any specific vegetable
suitable to grow in tropical climate, we are in a position to produce and export said vegetable
with best competitive price as we have well organized setup to perform said activities as per
importers demand.

5. 5
1.1 Collection of data
Data were collected from both primary and secondary sources. Primary data were collected
through direct interview with the respondents. The secondary data were collected from
renowned national and international organization, viz. Bangladesh Bureau of Statistics
(BBS), Export Promotion Bureau of Bangladesh (EPB), Directorate of Agricultural
Marketing (DAM), Food and Agricultural Organization (FAO), Statistics Department of
Bangladesh Bank, The Bangladesh Journal of Agricultural Economics, The Indian Journal of
Agricultural Economics, Bangladesh Economic Review, Hortex Foundation, Asian
Vegetables Research Development Center (AVRDC), Newspapers and Internet Files.
2.0 Export Processing
2.1 Export Transportation
Despite many problems, especially cargo shortage, the export of such perishable items
continues to increase. Biman Bangladesh Airlines is now carrying 60 per cent of total
vegetable export of the country. Foreign airliners, too, have shown their interest to carry
vegetables from Bangladesh.
2.2 Statistics of Vegetables Export
Frozen vegetables 2,176,076.46
AE: UNITED ARAB EMIRATES 35,989.31
AU: AUSTRALIA 45,203.04
BL: SAINT BARTHÉLEMY 5,877.69
CA: CANADA 12,311.42
GB: UNITED KINGDOM 1,546,181.11
IT: ITALY 3,028.44
JP: JAPAN 10,511.80
KR: KOREA, REPUBLIC OF 13,748.91
KW: KUWAIT 55,141.38
MY: MALAYSIA 13,564.65
PK: PAKISTAN 2,058.05
QA: QATAR 13,415.65
SA: SAUDI ARABIA 21,706.89
SG: SINGAPORE 796.18
US: UNITED STATES 396,541.92
Vegetables, provisionally preserved (unfit for
immediate consumption)
95,160,638.18
AE: UNITED ARAB EMIRATES 7,895,425.73
BE: BELGIUM 17,848.60
BH: BAHRAIN 1,517,838.45
BL: SAINT BARTHÉLEMY 20,494.63
CA: CANADA 1,253,590.52
DE: GERMANY 534,235.47
DK: DENMARK 2,292.49
FI: FINLAND 2,460.93
FR: FRANCE 981,767.02
GB: UNITED KINGDOM 25,538,280.98
GR: GREECE 234,254.80

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Table-1: Total Export ($) vegetables from Bangladesh, 2013
Source: EPB
3.0 Cost of vegetable production
Production cost plays a vital role in the decisions of the farmers. The costs refer to the total amount of
funds used in production.
Table2. Foreign exchange earnings from exporting (Million Tk.) vegetable in 2012-13.
Name of
vegetables
Total
export
(Million
Tk.)
Total consumption
at home (Million
Tk.)
Total
production
(Million Tk.)
Export earning as % of
total value of
vegetable production
Pumpkin 11 1227 1238 0.9
Brinjal 101 11262 11362 0.9
Pointed gourd 78 1378 1457 5.4
Okra 67 434 501 13.4
Ridge gourd 11 422 433 2.6
Bitter gourd 45 1261 1306 0.4
Eddoe 56 2359 2415 0.3
White gourd 34 587 620 5.4
Cucumber 22 3594 3616 0.6
Yardlong bean 45 404 449 10.0
1.spinach 11 849 860 1.3
HK: HONG KONG 19,498.72
IT: ITALY 5,237,552.59
JO: JORDAN 9,249.23
JP: JAPAN 18,574.90
KE: KENYA 24,332.13
KW: KUWAIT 7,558,410.17
LB: LEBANON 216,694.01
MH: MARSHALL ISLANDS 1,853.37
MV: MALDIVES 39,477.94
MY: MALAYSIA 6,579,060.23
OM: OMAN 996,678.57
PK: PAKISTAN 411.61
QA: QATAR 7,633,802.52
RU: RUSSIAN FEDERATION 357.22
SA: SAUDI ARABIA 27,841,240.48
SE: SWEDEN 276,909.85
SG: SINGAPORE 664,305.05
TH: THAILAND 5.14
UK: !!! Not Defined 13,293.46
US: UNITED STATES 30,441.36
Dried vegetables 151,600.70
GB: UNITED KINGDOM 40,016.20
JP: JAPAN 87,018.43
MY: MALAYSIA 24,566.07
Dried vegetables, shelled 245,129.16
JP: JAPAN 245,129.16

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Snake gourd 22 451 474 4.7
Stem Amaran. 56 592 648 8.6
Teasle gourd 45 1165 1210 3.7
Sponge gourd 22 663 686 3.3
Latiraj 78 1585 1664 4.7
C.flower - 2640 2640 -
Cabbage 11 5023 5034 0.2
Bottle gourd 22 1100 1122 2.0
Tomato - 11542 11542 -
Radish - 6837 6837 -
C. bean 22 556 578 3.9
Red Amarnth 22 650 672 3.3
Potato 123 36584 36708 0.3
Sub-total 907 93164 94071 1.0
Export other
veg.
213 - - -
Total export 1120 - - -
Grand total - - 95191 -
Total export earnings (%) from total vegetable production 1.18
3.1 Pricing and Costing
There is a lot of confusion between the price and the cost. Many consider these synonymous.
A few points to give you mental pictures of these points are as under Price is what we offer to
the customer. Cost is the price that we pay / incur for the product. Price includes our profit
margin. Cost only gives the expenses we have incurred. Costing is the Cost Accountant‟s
privilege. Pricing is the Marketing man‟s privilege.
3.2 Other Cost
 Loading charges from work to truck/ rail/ air etc.
 Freight charges to port of shipment
 Clearing and forwarding charges
 Dock charges / wharf age/ terminal handling charges etc.
 Freight charges to the destination port
 Insurance charges
 Insurance (both to port of shipment and destination)
 Commission
 Interest charges
 Guarantee/Warrantee costs

8. 8
Cost items Middle East UK
Packaging 3020.00 3184.00
Packaging materials 3488.00 3730.00
Grading & loading 960.00 1064.00
Transport cost (Go-down to airport 1700.00 1870.00
Unloading 176.00 186.00
Air freights charges 111250.00 160000.00
Airway bill charges (documentation) 216.00 238.00
Terminal & Handling 2440.00 2440.00
Export performa (EXP) charges 500.00 500.00
GSP certificate charges 0.00 300.00
Phyto-sanitary certificate 0.00 200.00
Bank services 50.00 50.00
Quarantine 100.00 100.00
Metropolitan chamber offices charges 500.00 500.00
Dhaka Chamber of Commerce Office Charges 1500.00 1500.00
Clearing & forwarding charges 1000.00 1000.00
Miscellaneous 150.00 150.00
Exporters‟ office expenses 2200.00 2272.00
Salary & Wages 920.00 1020.00
Office & go-down rent 910.00 1020.00
Tele. fax, Email, Photocopy etc. 252.00 276.00
Entertainment 334.00 368.00
Commission Agent 500.00 500.00
Total Cost 132166.00 182468.00
Total Cost except air Fare 20916.00 22468.00
Price in abroad 153082.00 204936.00
Selling price in abroad 185247.00 225135.00
Profit (Tk./MT) 32165.00 20199.00
Profit (Tk./kg) 32.17 20.20
Table-3: Other cost of packaging vegetables
Source: Different Exporters of Sham Bazar, Dhaka
4.0 Problem in Export
The main problem of potato exporting to Malaysia is delayed payment. The Malaysian importers
make the payment only after receiving the goods, he pointed out. The potato is exported by ships
in the containers with cooling capacity. The fresh vegetables exporters said the main problem in
export of this perishable item is space limitation in the cargo carrying planes. Many airlines do
not show interest in carrying vegetables due to its perishable nature and many other reasons. As a

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result, the exporters often have to depend on only state run airlines Biman Bangladesh for
sending vegetables abroad.
5.0 Conclusion
This is a clear indication of the above study that Bangladesh seemed to have high prospects for
export of vegetables for its high demand to the foreign ethnic market. The export of fresh
vegetables is more profitable due to high value addition. Bangladeshi vegetables were still not
well known to the foreign consumers. To familiarize Bangladeshi vegetables to the foreigners
and foreign super markets, quality of those vegetables has to be improved by different value
addition activities like upgrading the packaging, Processing, handling, grading and transportation
system. The exporters will be able to earn a sizeable amount of foreign exchange through
exporting vegetable, especially in the Middle East countries if the bottlenecks to the export can
be minimized through different government actions. So the Government should liberalize our
vegetables exporting policy by any means. In order to do so, it may be concluded here that the
downward trend of vegetable export is to be changed to upward trend of vegetable export.
5.1 Recommendation
The Government and concern authority should take the following policy measures for exploring
the export market of vegetables:
1. To establish some “Export village” in and around some selected vegetable growing areas. For
this location studies should be undertaken to identify exportable vegetables farming areas in
terms of both high productivity and efficient distribution. The exploration and expansion of the
market for vegetables needed supervised production, procurement, and cultivation processes
conforming to the demand of the importers. A direct link has established between exporters and
the farmers by coordinating production planning.
2. Bangladeshi exporters have now been facing stiff competition from their counterparts from
Pakistan, India and Kenya in Middle East markets to send their vegetables at cheap prices
through the sea route for their close proximity while Bangladeshi exporters have to rely on
expensive air shipment. This is a disadvantage for Bangladeshi exporters. It is therefore, crucial
to look for alternatives which would help reduce the transportation cost.
3. Exporters had to pay a high rate of air freight charge for the space in the aero planes because
Bangladesh has no cargo planes. Cargo space depends largely on number of passengers in
aircrafts. So Biman Bangladesh Airlines should buy separate cargo plane. Private Airlines should
be allowed to arrange cargo flights for reducing air freight charge which will be helpful for more
value addition to the exporters.

10. 10
Reference
1. Internet-1, 11 April 2013
(http://www.thefinancialexpress
bd.com/old/index.php?ref=MjBfMDRfMTFfMTNfMV82XzE2NjAyMQ==)
2. Internet-2, 11 April 2013
(http://www.hortex.org/produces.htm)
3. Internet-3, 19 June 2013
(http://archive.thedailystar.net/beta2/news/fruit-vegetable-exports-on-the-rise/)
4. Internet-4, 03 March 2012
(http://news.priyo.com/business/2012/03/03/fresh-vegetables-export-23-cen-47466.html)
5. Internet-5, 14 November 2013
(http://bangladesheconomy.wordpress.com/2009/11/14/vegetable-export-prospects/)
6. Internet-6, 23 November 2013
(http://agriexchange.apeda.gov.in/Ready%20Reckoner/Export_Costing_Pricing.aspx)
7. Internet-7, 23 February 2013
(http://www.moa.gov.bd/)