Bangladesh potato exports fall 49% as freight costs nearly quadruple

Shipments lose half of FY25 volume

Bangladesh’s potato exports through Chattogram Port nearly halved in the 2025-26 fiscal year as higher maritime transport costs weakened the country’s competitiveness in overseas markets. Plant Quarantine Centre data cited by The Business Standard show that shipments fell by 19,939 tonnes, or 49%, from 40,543 tonnes in FY25 to 20,604 tonnes in FY26.

Export earnings declined less sharply than physical volume. Export Promotion Bureau data put potato revenue at $8.89 million in FY26, down by $5.41 million, or 37.8%, from $14.30 million in FY25. The figures imply that the average value per exported tonne increased, but the improvement was not enough to offset the steep contraction in shipments.

The reversal followed a strong but brief recovery. Sea-borne exports through Chattogram had fallen from 54,527.109 tonnes in FY22 to 29,560.297 tonnes in FY23 and 11,179.660 tonnes in FY24. They then rebounded to 40,542.929 tonnes in FY25 before dropping again in FY26.

Freight and competing suppliers squeeze exporters

Exporters told The Business Standard that container freight rates had risen nearly fourfold amid geopolitical disruption. Mahbub Rana, president of the Chattogram Fresh Fruits, Vegetables and Products Exporters Association, said the cost of sending a container had climbed from around $2,500 to nearly $10,000. That increase is especially difficult to absorb for a relatively low-value and perishable crop shipped over long distances.

Bangladesh mainly supplies potatoes to Middle Eastern markets and Malaysia. Rana said bumper production in Egypt and Syria had added competitive pressure because both countries can deliver larger volumes to Middle Eastern buyers when their harvests are strong. Bangladeshi exporters consequently face both a higher freight bill and stronger price competition at destination.

Malaysia remained the leading destination in FY26, purchasing potatoes worth $3.68 million, while Nepal received $3.52 million. The United Arab Emirates followed at $767,604, ahead of Saudi Arabia at $282,366 and Singapore at $224,704. In FY25, Malaysia had purchased $7.32 million and the UAE $1.56 million, showing how sharply sales to two established markets declined. Nepal moved in the opposite direction, rising from $2.38 million in FY25.

Cold-chain gaps restrict the export season

Most export potatoes originate in Munshiganj, Rangpur and Bogura. Farmers generally harvest and supply the crop in January and February, with regular exports continuing until July. During the final six months of the year, stored potatoes often begin to sprout, reducing quality and making them unsuitable for export. Exporters argue that modern storage and processing capacity is therefore necessary to maintain year-round supply.

Exporter Md Forkan identified breaks in the cold chain as a central operational problem. Once potatoes leave cold storage, grading, processing and packing can keep them at normal temperatures for a considerable period. Loading the crop directly from cold stores into refrigerated containers could limit deterioration, but Forkan said this would require simpler customs and quarantine procedures, including the possibility of inspections and testing at storage facilities.

Subal Chakma, deputy director of the Export Promotion Bureau’s Chattogram office, said the agency had no specific assessment of the decline and primarily collected and published data. Exporters warned that prolonged geopolitical conflict and persistently expensive maritime transport would make it harder to defend Bangladesh’s market position. They identified lower transport costs, additional export support and market diversification as priorities, alongside investment in storage, processing and a more continuous cold chain.