UNCTAD

Sub-Regional Workshop on
Environmental requirements, market access/entry and export
competitiveness in the Horticultural Sector
Bangkok, 29 September – 1 October 2004
International Institute for Trade and Development (ITD)

Country Case Study on Environmental Requirements, Market

Access/Entry and Export Competitiveness for Horticultural Products
from

BANGLADESH

Project on Building Capacity for Improved Policy Making and Negotiation on Key Trade and
Environment Issues
 NATIONAL CASE STUDY ON ENVIRONMENTAL REQUIREMENT
MARKET ACCESS/ENTRY & EXPORT COMPETITIVENESS
IN HORTICULTURE IN BANGLADESH

A STUDY UNDERTAKEN
FOR UNCTAD, GENEVA

BY

MD. AKMAL HOSSAIN1

DHAKA, BANGLADESH
August, 2004

1
Managing Director, Hortex Foundation and formerly Director General, Export Promotion Bureau,
Bangladesh. The findings, interpretations and conclusions are of author’s own and should not be
attributed to either the sponsoring agency UNCTAD or the Foundation, where he is presently working.
 TABLE OF CONTENTS

Page #

ACRONYMS AND ABBREVIATIONS ...........................................................................i

EXECUTIVE SUMMARY ..............................................................................................ii
1. INTRODUCTION ......................................................................................................1
1.1 Study Objectives and Terms of Reference .........................................................1
1.2 Environmental Requirements and How it Influences .........................................1
1.3 Methodology.......................................................................................................2

2. OVERVIEW OF BANGLADESH AGRICULTURE ............................................2

2.1 Main Features...................................................................................................2
2.2 Policy Framework ............................................................................................3
2.3 Relevance of the Study ....................................................................................3

3. PRESENT PRODUCTION STATUS OF HORTICULTURAL CROPS

(VEGETABLES, FRUITS & FLOWERS) ............................................................3
3.1 Vegetables .........................................................................................................3
3.1.1. General characteristics......................................................................3
3.1.2. Acreage and production ....................................................................4
3.1.3. Seasonality of crop ...........................................................................4
3.1.4. Domestic requirement.......................................................................5
3.1.5. Marketing system..............................................................................5
3.1.6. Prices.................................................................................................5
3.2 Fruits.................................................................................................................5
3.2.1. General characteristics.....................................................................5
3.2.2 Acreage and production.........................................................................6
3.2.3 Seasonality.............................................................................................6
3.2.4 Domestic requirement............................................................................6
3.2.5 Marketing system ..................................................................................7
3.2.6 Prices .....................................................................................................7
3.3 Flowers and ornamentals .................................................................................7

4. EXISTING EXPORT PATTERN ...............................................................................7

4.1 Vegetables ......................................................................................................7
4.1.1 Export performance ..............................................................................7
4.1.2 Market destination ................................................................................8
4.1.3 Item-wise export ...................................................................................9
4.1.4 Market characteristics...........................................................................10
4.1.5 Production and packaging system ........................................................10
4.1.6 Air transportation..................................................................................10
4.2 Fruits...............................................................................................................11
4.2.1 Export performance ..............................................................................11
4.2.2 Market destination ................................................................................11
4.2.3 Item-wise export ...................................................................................12
4.3 Flowers and ornamentals ................................................................................12

5. ENVIRONMENT AND HEALTH REQEQUIREMENTS IN KEY

EXPORT MARKETS ..............................................................................................12
5.1 U.K. .................................................................................................................12

Page #
 5.1.1 Plant health requirements: phytosanitary certificate .........................13
5.1.2 Standards and regulations: certificate of conformity ........................13
5.1.3 Food safety ...........................................................................................13
5.1.4 Environmental and social issues: EUREP-GAP...................................13
5.2 Saudi Arabia .....................................................................................................14
5.3 UAE, Kuwait, Bahrain, Qatar and Oman .........................................................14

6. AWARENESS OF THE QUALITY & ENVIRONMENTAL ISSUES..............14

6.1 Fruits and Vegetables Industry.......................................................................14
6.2 Organization of Export: Bangladesh Fruits, Vegetables and Allied
Products Exporters’ Association (BFVAPEA) ...............................................................15
6.3 Organization of Production : Farmers Level ..............................................................15
6.4 Initiating the Change: Hortex Foundation..................................................................16
6.5 Exporting Quality Produces:Bangladesh Rural Advancement Committee(BRAC)...16
6.6 EUREP-GAP..............................................................................................................17
6.7 Development of Super Market ...................................................................................17

7. EXISTING MECHANISM FOR INFORMATION GATHERING,

PROCESSING AND DISSEMINATION ................................................................18
7.1 National Enquiry Point ...............................................................................................18
7.2 Working Group on Agriculture, SPS and Other Related Matters...............................18
7.3 Department of Agricultural Extension (DAE)............................................................19
7.4 Plant Protection Wing of DAE ...................................................................................19
7.5 Bangladesh Agricultural Research Institute (BARI) ..................................................20
7.6 Bangladesh Agricultural Development Corporation (BADC) ...................................20
7.7 Bangladesh Standards and Testing Institution (BSTI) ...............................................21
7.8 Export Promotion Bureau (EPB) ...............................................................................21
7.9 Bangladesh Tariff Commission (BTC).......................................................................21
7.10 Bangladesh Foreign Trade Institute (BFTI)................................................................21
7.11 Private Sector Involvement ........................................................................................22
7.12 Efficiency and Effectiveness of the Mechanism.........................................................22

8. CURRENT ADJUSTMENT APPROACH ................................................................22

8.1 At Policy Level ...................................................................................................................... 22
8.2 At Field Level .............................................................................................................23

9. ELEMENTS OF PROACTIVE APPROACH TO NATIONAL

ADJUSTMENT POLICY ............................................................................................23
9.1 Proactive Approach Versus Reactive Approach ........................................................23
9.2 Policy Level ...............................................................................................................23
9.3 Operational Level .......................................................................................................24
9.4 Supply Chain Management.........................................................................................24
9.5 Market Assessment and Cost of Compliance Analysis...............................................25
9.6 National Standard Setting, Implementation of Foreign Standards and
Compliance Assessment Procedures............................................................................25
9.7 Pre-standard Setting Consultation in Export Markets and Participation in
International Standard Setting......................................................................................25

10. CAPACITY BUILDING ................................................................................................26

10.1 A Total Approach Needed.........................................................................................26
10.2 Capacity Building to be Sustainable..........................................................................26

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 10.3 Technical Assistance .................................................................................................27

11. CONCLUSIONS AND RECOMMENDATIONS...........................................................27

11.1 Conclusions ..............................................................................................................27
11.2 Recommendations.....................................................................................................28

LIST OF TABLES

Table-1: Vegetables production during 1993-94 to 2002-03..........................................................4

Table-2: Fruits production during 1993-94 to 2002-03......................................................................... 6
Table-3: Year-wise Export of Vegetables Since 1992-93 ..............................................................8
Table-4: Major Market Destinations of Vegetables in the Year 2002-2003...................................8
Table-5: 10 Major Items of Vegetables/Fruits Exported to the United
Kingdom in 1996-97...................................................................................................................... 9
Table-6: 10 Major Items of Vegetables/Fruits Exported to the Middle East in 1996-97 ................ 9
Table-7: Year-wise Export Earning from Fruits since 1993..........................................................11
Table-8: Major Market Destinations of Fruits in the Year 1996/97-2002/2003 ............................11

LIST OF ANNEXES

Annex-A Generic Outline for the National Case Study on Environmental Requirements,
Market Access/Entry and Export Competitiveness in the Horticulture Sector ..................29
Annex-B Indicative Questionnaires Used.......................................................................................31
Annex-C Area and Production of Horticultural Crops from 1997-98 to 2002-2003 ......................35
Annex-D Export Directions of Fruits and Vegetables in 2001-2002 & 2002-2003 .......................37
Annex-E Ranking of 7 Top Market Outlets of Fruits & Vegetables (1999-2003).........................38
Annex-F List of the Exportable Fruits and Vegetables from Bangladesh .....................................39
Annex-G Fruits, Vegetables, Cut Flowers Requiring Phytosanitary Certificates for
Entry into the UK .............................................................................................................41
Annex-H Horticultural Produces Requiring Conformity Certificates ...........................................44
Annex-I References ......................................................................................................................45

c
 ACRONYMS AND ABBREVIATIONS

ATC Agreement on Textiles and Clothing

BADC Bangladesh Agricultural Development Corporation
BARI Bangladesh Agricultural Research Institute
BFTI Bangladesh Foreign Trade Institute
BRAC Bangladesh Rural Advancement Committee
BFVAPEA Bangladesh Fruits, Vegetables & Allied Products Exporters’ Association
BSTI Bangladesh Standards and Testing Institution
BTC Bangladesh Tariff Commission
DAE Department of Agricultural Extension
DANIDA Danish International Development Assistance
DCCI Dhaka Chamber of Commerce & Industry
Defra/defra Department of Environment, Food and Rural Affairs, UK
EC European Commission
EU European Union
EPB Export Promotion Bureau
EUREP-GAP European Union Retailers Practice - Good Agricultural Practice
FAO Food and Agricultural Organization
FBCCI Federation of Bangladesh Chambers of Commerce & Industry
FSA Food Standard Agency
g gram
GBP Great Britain Pound Sterling
GDP Gross Domestic Product
GOB Government of Bangladesh
ha hectare
HACCP Hazards Analysis & Critical Control Points
HMI Horticulture Marketing Inspectorate, UK
IDA International Development Association
IPM Integrated Pest Management
IPPC International Plant Protection Convention
IPRSP Interim Poverty Reduction Strategy Paper
ISO International Standards Organization
ITC International Trade Centre
Kg Kilogram
KSA Kingdom of Saudi Arabia
LDCs Least Developed Countries
MRL Maximum Residue Level
MT/mt Metric Ton
NAP National Agricultural Policy
NGO Non-Government Organization
POA Plan of Action
PSI Pre-shipment Inspection
SMEs Small & Medium Enterprises
SPS Sanitary and Phytosanitary
TBT Technical Barrier to Trade
TRIMs Trade Related Investment Measures
TRIPS Trade Related Aspects of Intellectual Property Rights
UAE United Arab Emirates
USD United States Dollar
UK United Kingdom
UNCTAD United Nations Conference on Trade and Development
UNDP United Nations Development Programmes
WTO World Trade Organization

EXECUTIVE SUMMARY

i
1. Although the shares of industrial and service sector to GDP have been increasing
gradually, agriculture still remains the predominant sector of Bangladesh economy,
accounting for 22% of GDP and creating more than 60% of national employment.
Agriculture sector is also performing well with increased productivity, incipient crop
diversification (fruits and vegetables) and almost self-sufficiency in rice production, the main
cereal crop of the people.

2. The government has embarked upon a set of reforms for moving the country towards
a more market-oriented system and this has increased the process of transformation from
subsistence farming to commercial farming in agriculture, yet the country’s preparedness for
integration into the world economy has been quite modest till to-date.

3. Fruits and vegetables are usually considered as protective food and high value crops
and there is, therefore, a natural trend to go for increased cultivation under the
commercialization process, although the total cropped area under cultivation of fruits and
vegetables is still very insignificant, 3.22% only. Most of the crops are seasonal in nature,
only a few are produced round the year. Marketing channel is predominantly controlled by
the middlemen and post-harvest management is extremely poor.

4. Export growth of fruits and vegetables was phenomenal during 1997-98 (300%), the
same way, its export decline was also alarming during 1999-2003 (145%). This shows
potentials of the sector as well as its vulnerability to natural calamities, like periodical floods,
and subsequent loss market.

5. Key export destinations are the UK(28%), followed by Saudi Arabia ( 23%), UAE
(14%), Kuwait (13%), Qatar ( 6%), Bahrain (6%) and Oman (5%) and target buyers are
mostly the ethnic population. The marketing approach being followed is market to market
rather than production to market. As such exporter-producer linkage is indirect and supply
chain management is inefficient. Export of cut-flower is still at its nascent stage of
development.

6. Out of seven key export markets, the UK is the most important one, presently
contributing more than 28% of the total export of the sector and at the same time, more
quality conscious as well. Buyers in the mainstream markets are increasingly enforcing
stringent conditions on the suppliers, like complying with EUREP-GAP standard. The ethnic
market buyers, however, still follow the liberal policy for import, as there is no mandatory
marketing barrier for entry of most of the Asian fruits and vegetables to the UK at the
moment. Middle East markets are also behaving more or less the same way, although
phytosanitary certificate is a requirement there.

7. The situation has, however, started changing and even the ethnic market buyers are
asking for better packaging and better quality in the context of the globalized economy. SPS
and various other environmental and food safety measures are also increasingly being put in
market places. This calls for creating awareness among the exporters in the matter and getting
them prepared to adhere to the buyers’ requirements, otherwise, risk is there to lose market
access and export competitiveness.

8. The government machinery working in this area is somewhat organized to respond to

WTO matters, but they are not still geared to the implementation of the SPS and other
environmental/health related matters. The existing mechanism for information gathering,
processing and dissemination is not properly working, nor is working any system of
coordination, follow-up and monitoring, As such, the core group of stakeholders still remain
mostly unaware, uninformed and unconcerned.

ii
9. Private sector at the level of leading chambers and product association is also not
adequately tuned up, firstly, because they consider it the responsibility of the government and
secondly, possibly, they neither have adequate resources, nor do they seriously feel the punch
yet. Only one private sector Foundation and one NGO are apparently working in this area
all throughout the chain.

10. No sign of proactive adjustment policy is, thus, visible. Foreign standard
implementation and compliance assessment performance are also very poor, although there is
some sort of a system working in the area of national standard setting, pre-standard setting
and international standard setting consultations and participation in export markets.

11. A broad-based capacity building is, therefore, the most urgent need of the country at
the moment. The means of capacity building could be awareness and recognition at the level
of users, implementers and policy-makers, physical infrastructure, human resources/training
and institutional build-up. The institutional capacity building should again encompass
government sector, private sector, including NGO and even civil society.

12. This huge task of capacity building ahead cannot be taken care of by the GOB alone
out of its own resources, for obvious reasons. Donor support in the form of financial and
technical assistance could, therefore, be the only way out. This support also needs to be given
not in a piecemeal way, but in a well-coordinated manner. Again, it should be a total approach
and not a partial approach.

iii
INTRODUCTION

1.1 Study Objective & Terms of Reference

UNCTAD, Geneva, awarded a contract to Md. Akmal Hossain to undertake a study on

Environmental Requirement, Market Access/Entry and Export Competitiveness in the Horticulture
Sector (Fruits, Vegetables and Flowers) in Bangladesh for their Project on Bangladesh Capacity for
Improved Policy Making and Negotiation on Key Trade and Environment Issues. The study is
intended to be presented at the sub-regional workshop on horticulture and also to be used as
background material for national level training workshops foreseen under the above project.

The Terms of Reference require the consultant to analyse the interface between
environmental requirement in key export markets, market access/entry and export competitiveness in
the horticulture sector of Bangladesh based on the following generic outline:

• Identification of environmental/health requirement in key export market;

• Awareness on the issues and effectiveness of information management;
• Current adjustment approach; and
• Element of a pro-active approach and the need for institutional capacity
building.

Details of the Generic Outline may be seen at Annex-A.

1.2 Environmental Requirements and How It Influences

Environmental requirements with potential effects on market access include standards (which
are voluntary) and technical requirements (which are mandatory), labelling requirements (either
mandatory or voluntary, such as eco-labelling), packaging regulations and certain sanitary and phyto-
sanitary (SPS) measures. Most of these rules and regulations require a proof of compliance, i.e.,
through conformity assessment, including certification. In the context of the environmental data base,
the WTO views are that part of the SPS measures are directly related to the environment, while most
of the environmental protection measures are addressed by the TBT Agreement.

To be able to compete successfully in the international markets, the developing country

producers must, therefore, examine and, to the extent possible, anticipate developments in these areas
for products of their export interest. They must be able to meet health and environment related
regulations to gain market access where voluntary environment and sanitary requirements have
become an integral part of product quality. Developing country producers need to be able to meet such
requirements to sustain in the export market. Thus, environmental/health requirements (sanitary) are
increasingly becoming important as one of the key tools in international competitiveness race for
sustained market access.

Although mandatory environmental requirements are important, informal (non-government)

requirements are far more numerous and in many sectors, particularly in horticulture, play a key role.
Voluntary requirements include, for example, buyer’s requirements like EURAP-GAP, traceability,
MRL, etc. for horticultural crops. Such requirements, at times, may be difficult to meet for developing
countries like Bangladesh, as these countries face major difficulties in implementing sophisticated
traceability and crop quality systems. Yet, the position is that these countries are not the standard-
setters, rather they are standard-takers only and if they want to survive in the international
competitive market, standards given by the developed countries have to be complied with. To be
practical, it is, therefore, necessary to try to comply with the international SPS and TBT related rules
and regulations, both mandatory and voluntary. These rules and regulations are mostly related to

1
human health, animal health and plant health and as such what is viewed as quality standard at the end
of the consumers, are usually regarded as environment standard as the end of the producers. That is
why, such measures, particularly as applied to the key export markets of Bangladesh in the
horticulture sector, will be dealt with in greater details in the following Sections.

1.3 Methodology

Different sets of questionnaires were developed on the basis of the case study outline,
following which a series of interviews and telephonic discussions were held with the stakeholders at
various levels. Besides, Bangladesh High Commission/Embassies in key horticultural export markets
were contacted with a request to furnish information regarding the existing as well as newly emerging
quality standards, if any, that may affect Bangladesh export in future. Secondary information sources
in the form of surveys, reports, publications, notifications, etc. having relevance with this study were
also consulted. A regional video conference recently held under the auspices of the World Bank on
SPS and other related matters, simultaneously in all the countries of South Asia and the interactions
thereto also provided useful inputs in the study. The results from all these interviews, discussions,
communications, consultations and interactions were analyzed and used as the basis of the report.
Questionnaire outlines are given at Annex-B.

The key organizations/agencies consulted were:

- Concerned Ministries of the Government of Bangladesh;

- Bangladesh High Commissions/Embassies in key export market;
- Various support organizations;
- Private sector bodies, like chambers and product association;
- Export firms;
- Farmers;
- NGOs.

2. OVERVIEW OF BANGLADESH AGRICULTURE

2.1 Main Features

Despite the evolution of Bangladesh economy during the last three decades after independence
as witnessing a gradual increase in the shares of the industrial and service sectors to GDP, agriculture
still remains a fundamental sector of the economy, accounting for 22% of the GDP in 2002 and
absorbing more than 60% of the national workforce. The agriculture sector had also performed
relatively well in the last decade due to increased productivity, incipient diversification into value-
added products, such as fruits, vegetables, poultry, dairy and fish and almost self-sufficiency in rice
production, the main cereal crop for the people. This performance was achieved in spite of a large
population (currently more than 130 million), scarce cultivable land (an average of 0.6 ha per
household), a very high population density and the regular occurrence of natural calamity. However,
still a large segment of population is under poverty line (34%), with most of the poor concentrating in
the rural areas.

At present, despite some diversification, most of the agricultural production is still

concentrated on the limited number of crops, with food crop, rice continuing to be the most important
crop. While cash crops, like sugarcane and jute have seen their production stagnating or declining over
the past decades, there has been increased production of spices and tea. Production of fruits and
vegetables has also improved. In the non-crop sector, poultry, dairy and seafood have seen
considerable growth.

2.2 Policy Framework

2
 Bangladesh agriculture sector is in a process of transformation from subsistence farming into
commercial farming. This transformation has been helped by considerable improvement over the last
two decades in the road, communication and electricity infrastructure. Since the later part of 1980s, the
Government has embarked upon a set of reforms for moving the economy towards a more market-
oriented system. The National Agricultural Policy (NAP) of 1999 supports an enhanced private sector
participation in different sectors, such as seeds, fertilizer, agro-machinery and agri-business.

The Interim Poverty Reduction Strategy Paper (I-PRSP) of 2002 also recognizes the private
sector as the engine of economic growth and views the Government as responsible for creating an
investment-friendly environment and acting as a facilitator only. The I-PRSP considers the rapid
growth of agriculture as critical to poverty reduction and dependent upon agro-processing and agri-
business development to facilitate access of the farmers to modern inputs and ensure increased
demand for agri-products.

The Plan of Action (POA) of the NAP views exports in the context of globalization and
recognizes that the country’s preparedness for integration into the world economy has been modest
till to date. The Export Policy of the country equally considers the global integration process a big
challenge for Bangladesh in the days ahead.

2.3 Relevance of the Study

It is in this background, this study carries importance, as it is going to be a stock-taking

document of the present level of country’s awareness and preparedness to meet the growing quality
and environmental issues of the importing countries in the horticulture sector.

3. PRESENT PRODUCTION STATUS OF HORTICULTURAL CROPS

(VEGETABLES, FRUITS & FLOWERS)
3.1 Vegetables
3.1.1 General characteristics

Vegetables are usually considered as protective food and high-value crops, so are fruits and
spices. The potentiality of this sector, generally known as horticultural sector, is immense, although it
has never been exploited fully. Of the total 13.3 million hectares of arable land in the country, only
6.73% is under horticultural crops. If potato and spices are excluded, the area comes down to 3.22%
only (Annex-C).

Horticultural crops are grown for 3 specific purposes as follows:

• Subsistence production in the homestead;

• Commercial production; and
• Seed production.

The most important horticultural production unit in Bangladesh is the homestead and almost
without exception, women play the major role in managing homestead production. Commercial
production so long was the domain of big landlords and mostly fruit crops were produced
commercially. Recently, however, commercial production of vegetables are also getting momentum
and farmers with proper knowledge and skill are coming forward increasingly to undertake this
venture. Vegetable seed production and production of other planting materials were exclusively the
job of the public sector agencies in the past. Recently, private entrepreneurs have also started taking
initiative in this area.

3
3.1.2 Acreage and production

In Bangladesh, more than 60 different types of vegetables of indigenous and exotic origin are
grown. At present, total vegetable growing area in the country is about 253,036 hectares (2.47 acre is
equal to a hectare), of which 60% are cultivated during winter. These crops were neglected and
relegated in the past, as research and extension work mostly concentrated on cereals. It is, therefore,
not surprising that vegetables contribute only 3.68% to the GDP with a production area of less than
2% of the total cropped area. This may be seen from Table-1

Table-1: Vegetables production during 1993-94 to 2002-03

Vegetable % of veg. Yield/

Total cropped area area to total Production acre
Year area in acre in acres cropped area in MT (MT)
1993-94 - 447000 1.34 1165000 2.61
1994-95 - 457000 1.37 1204000 2.63
1995-96 33355000 471870 1.41 1243919 2.64
1996-97 34090000 486760 1.43 1288730 2.65
1997-98 34727000 496000 1.43 1307000 2.64
1998-99 34082000 572000 1.68 1433000 2.59
1999-00 35495000 609000 1.72 1559000 2.56
2000-01 35408000 626000 1.77 1578000 2.52
2001-02 34615000 615000 1.78 1567000 2.55
2002-03 35005000 625000 1.79 1625000 2.60

It is observed from the table that there has been some increase in the acreage under vegetable
production during the last 5 years over the preceding 5 years (30%), indicating a gradual
transformation of agriculture to more value-added horticulture. One redeeming feature is that whatever
increase in the production area of vegetables has taken place so far, that has contributed to the increase
in the percentage of the total cropped area from 1.34 in 1993-94 to 1.79 in 2002-2003, meaning that
some other crops are losing their share in the total cropped area in favour of vegetables. Yield per acre,
however, did not increase, rather remained, more or less, stagnant during this period. This shows that
the productivity of the vegetables in 2002-2003 was still at the same level of 10 years ago, i.e. 1993-
94.

3.1.3 Seasonality of crop

Based on the growing seasons, vegetables are categorised as summer/rainy season vegetables,
winter season vegetables and all-season vegetables. Of the summer vegetables, various cucurbits,
vegetable cowpa, hyacinth bean, stem amaranth, several aroids and Indian spinach are predominant.
Winter vegetables include tomato, cabbage, Chinese cabbage, cauliflower, brinjal, carrot, spinach,
bottle gourd, bush bean and radish among many others. Crops like okra, heat tolerant tomato, brinjal,
carrot, spinach, many leafy vegetables, small onion, etc. can be grown any time of the year. Summer
vegetables are cultivated during the monsoon season from May to October. On the other hand, winter
vegetables are grown during cold season from November to April. There is more consumption of
vegetables in this season and most districts produce marketable surplus.

3.1.4 Domestic requirement

Current production of vegetables is considerably below the domestic requirement. There is,
therefore, a big gap between the vegetable production estimated at 2.6 million MT and the national
vegetable requirement estimated at 10 million MT. This gap is likely to expand further with increase
of population and per capita income, unless more land is brought under vegetable production and

4
productivity increases. Presently, only about 33% of the estimated vegetable area are under vegetable
production.

Nationally, the consumption of vegetable is reckoned to be 50-70 g/head/day or 18.25-25.5

kg/head/year, as against the requirement of 200 g/head/day from nutritional point of view.

3.1.5 Marketing system

Vegetables are generally sold by farmers immediately after harvest because of their need for
cash and lack of storage facilities. According to the FAO survey, about 82% of farmers in all the
regions sell horticultural crops immediately after harvest. They use head load and rickshaw vans to
carry the produce to markets. Traders, wholesalers and buyers mainly use richshaw vans and trucks.
About 66% of the farmers sell their produce in weekly markets and 22%, in the daily markets.
Farmers usually get price information from other farmers, traders, radio, television and newspapers.

Marketing channels and involvement of intermediaries vary among regions. The FAO survey
indicates that about 19% of retailers, 41% of traders and 21% of consumers buy vegetables directly
from farmers. The two major marketing channels are producer-trader-retailer-consumer and producer-
trader-wholesaler/commercial agent-small holder/retailer-consumer. The commission of
intermediaries varies by region and from crop to crop. The margin between the trader’s price and the
retailer’s price could be as high as 150% during peak season and 200% during off season.

3.1.6 Prices

Retail and wholesale prices of vegetables fluctuate substantially from year to year and also
from month to month, depending on the supply situation. Seasonality, under developed marketing and
transportation system, poor infrastructure and insufficient storage facilities intensify price volatility.

3.2 Fruits
3.2.1 General characteristics

The general characteristics of fruit production is more or less similar to that of vegetable
production. In this case also, homestead gardens predominate and most of the production is based on
subsistence farming. However, commercial production is also gradually taking shape and getting
momentum with the passage of time.

Fruit crops mainly grown in the country are mango, pineapple, papaya, jack fruit, coconut,
betel nut, carambola, berfruit, blackberry, guava, litchi, cashew nut and woodapple, covering an area
of about 202,024 ha, nearly 80% of which are in home gardens. Several regions specialize in certain
crops, such as banana in Jessore, mango in Rajshahi, pineapple in Chittagong and Sylhet and betel nut
and coconut in the delta regions.

3.2.2 Acreage and production

Although acreage and production of fruits had increased marginally over the last 10 years
from 1993/94-2002/2003, yield per acre had declined from 3.40 MT in 1993/94 to 3.27 MT in
2002/2003. This may be seen at Table 2.

Table-2: Fruits production during 1993-94 to 2002-03

Total cropped Fruit area % of fruit area Production Yield/acre

Year area in acre in acres to total in MT (MT)
cropped area

5
 1993-94 429000 1.29 1460000 3.40
1994-95 436000 1.31 1467000 3.36
1995-96 33355000 446970 1.34 1486665 3.33
1996-97 34090000 451000 1.32 1490000 3.30
1997-98 34727000 456000 1.31 1495000 3.28
1998-99 34082000 458000 1.34 1430000 3.12
1999-00 35495000 451000 1.27 1404000 3.11
2000-01 35408000 473000 1.34 1486000 3.14
2001-02 34615000 481000 1.39 1547000 3.22
2002-03 35005000 499000 1.43 1631000 3.27

This situation probably reflects low input levels and lack of good germplasm and technology
applied in the production of fruits. Yield increases by intensification process could easily be as high as
8 fold for litchi, mango and pineapple and 3 fold for banana, based on the experiences of similar
climates in other countries.

3.2.3 Seasonality

Like vegetables, fruits are also seasonal crops, the most important season being the
summer/rainy season. In this season, most of the fruits are grown in Bangladesh. This includes mango,
pineapple, jack fruit, carambola, blackberry, guava, woodapple, litchi, water melon, etc. Compared to
this, winter fruits are very few and far between. Some types of palms and some quantity of oranges
and different varieties of citrus fruits are the main crops of this season. Among all season fruit crops,
mention may be made of coconut, betel nut, papaya, and some types of citrus fruits. Although most of
the fruits are grown in the summer/rainy reason, many of them can be made all season crops through
proper research and development activities.

3.2.4 Domestic requirement

Most of the fruits produced in the country are consumed at domestic level. About 30% of
them are generally marketed, especially pineapple from Chittagong area (29% of total production),
mango from Rajshahi area (about 15%) and banana from Barisal area (about 15%). For a population
of 130 million, the consumption of fruits per head per year is staggeringly low, only 11.5 Kg/head/
year. This is about one quarter of the fruit consumption in Europe and one-ninth of the fruit
consumption in Australia, Hong Kong and Taiwan. This explains why a large number of fruits,
particularly in the winter season, are imported to Bangladesh every year.

3.2.5 Marketing system

Marketing system of fruits is similar to that of vegetables. FAO survey indicates that about
36% of retailers, 27% of traders and 22% of consumers buy fruits directly from the farmers who
usually sell their crops mostly in the weekly markets and partly in the roadside and daily markets.

In general, production of fruits is an attractive alternative for farmers, as gross margins may
go up to 10-12 times compared to paddy. But the risk involved is much higher for many fruits, because
of price volatility and market gluts during peak season.

3.2.6 Prices

Like vegetable crops, retail and wholesale price of fruit crops also fluctuates substantially
from year to year and also from month to month, depending on the supply situation. The reasons of
this price volatility are also similar to those of vegetables.

6
3.3 Flowers and ornamentals

Flowers and ornamentals are still an under-developed segment of horticultural crops. The
types of flowers presently grown mainly include tuberose, marigold, rose, gladiolus and gerbera. The
total area under cultivation of flowers is estimated to be above 3000 acres all over the country.
Production of tuberose flowers is, however, concentrated in Jessore and Chuadanga regions. Flowers
are also mainly grown in home gardens, except tuberose and a portion of rose, marigold, gladiolus and
gerbera which have been started growing commercially.

In Bangladesh, there are about 10,000 nurseries. Apart from commercial flower production,
these nurseries are also producing different types of ornamental plants and foliage. These plants and
foliages are also being commercially transacted, the main markets being Dhaka and Chittagong. Like
other horticultural crops, these flowers and ornamentals are also subject to seasonality, poor marketing
system, infrastructural shortcomings, transportation difficulties and price volatility.

4. EXISTING EXPORT PATTERN

4.1 Vegetables
4.1.1 Export performance

Bangladesh primarily exports fresh vegetables and fruits in the horticultural sector. If the last
10 years of export performance of vegetables is analyzed, it is observed that there had been a
tremendous growth in vegetable export during the first 5- year period from 1992-93 to 1997-98 and
more or less in the same way, a sharp decline of vegetable export over the last 5-year period from
1998-99 to 2002-2003. This may be seen at Table-3 overleaf:

7
 Table-3: Year-wise Export of Vegetables Since 1992-93

FY Value (‘000’ US$ Growth (%) Quantity(MT) Growth (%)

1992-93 8060 47.62 8142 56.46
1993-94 8120 0.74 7415 -8.93
1994-95 8690 7.02 8270 11.53
1995-96 14510 66.97 12931 56.36
1996-97 24910 71.67 20449 58.14
1997-98 32470 38.38 23597 15.39
1998-99 17680 (-)45.55 13106 (-)44.46
1999-2000 14000 (-)20.82 10270 (-)21.64
2000-2001 12787 (-)8.66 9509 (-)7.41
2001-2002 15320 (+)19.81 12761 (+)34.20
2002-2003 13240 (-)13.58 9792 (-)23.27
Source: EPB

The head-on decline of vegetable export in the year 1998-99 may be ascribed to the long-
duration devastating flood of October, 1998, but its recurrence in the subsequent years is a clear
indication of loss of export markets and here lies the concern for the country. It now appears that
export of vegetables is getting settled down around US$14 – US$20 million, a level which is
much low compared to the potentials of this sector.

4.1.2 Market destination

Although Bangladeshi vegetables are being exported to about 30 market destinations, the
major buyers are, in fact, located in two regions: the UK and the Middle East. In the Middle East
region again, the major market outlets are Saudi Arabia, UAE, Kuwait, Qatar, Bahrain and Oman.
Table-4 will show the contribution of each of these market places to vegetable export from
Bangladesh in the year 2002-2003.

Table 4: Major Market Destinations of Vegetables in the Year 2002-2003

Sl. No. Countries Earning in ‘000’ US$ % of Total

1. UK 3758 28.38
2. Saudi Arabia 3030 22.89
3. UAE 1846 13.94
4. Kuwait 1681 12.70
5. Qatar 650 6.42
6. Bahrain 763 5.76
7. Oman 675 5.10
8. Others 637 4.81
Total 13240 100
Source: EPB

It appears from Table-4 that the UK is by far the most important market outlet for Bangladeshi
fresh produces, lifting more than 28% of the total export of vegetable from Bangladesh. In the Middle
East, the biggest market is Saudi Arabia (23%), followed by UAE (14%), Kuwait (13%),Qatar (6%),
Bahrain (6%) and Oman(5%). These 7 individual markets together contribute more than 95% to the
total export earning from vegetables and as such, are considered as the most important market outlets
for this sector. A comprehensive table of fruits and vegetables export to various market destinations in
2001-2002 and 2002-2003 is given at Annex-D.

8
 Over the years, there has not been any structural change in the export direction of vegetables.
These seven markets used to play the same important role as of today, always lifting more than 90% of
the total vegetable export from Bangladesh. In terms of ranking, however, there had been some
occasional changes among the 4 Middle Eastern countries, with Saudi Arabia and Kuwait always
holding the second and fourth positions respectively and UK, the topmost position. Details may be
seen at Annex-E.

4.1.3 Item-wise export

The above data do not, however, reflect the item-wise export position of Bangladesh, nor do
it indicate the number of items exported. Hortex Foundation attempted to fill up the gap and a Sample
Base-line Survey was conducted among 11major exporters for this purpose in 1996-97. Although this
survey is a little outdated, it reveals important crop information which still plays predominant role in
vegetable export from Bangladesh.

Market-wise first 10 export items and their percentage contributions may be seen in Tables 5
and 6.

Table 5: 10 Major Items of Vegetables/ Fruits Exported to the United

Kingdom in 1996-97
Rank- Volume Value Value Avg. Price
Ing Name of Crop Kg % GBP GBP/Kg
1. Green Chilly 67,150 16.5% 91,473 1.36
2. Jack Fruit 54,340 13.4% 66,808 1.23
3. Lemon 36,020 8.9% 64,470 1.79
4. Stolon of Taro 27,020 6.7% 35,448 1.31
5. Taro tuber 26,540 6.5% 34,825 1.31
6. Egg plant 24,800 6.1% 32,740 1.32
7. Snake Gourd 21,700 5.3% 28,340 1.31
8. Yard Long Beans 18,550 4.6% 25,660 1.38
9. Bottle Gourd 18,000 4.4% 23,615 1.31
10. Green Papaya 15,280 3.8% 20,097 1.32
11. Others 96,770 23.8% 141,922
Total of Survey 406,170 565,398 1.39
Source: Hortex Foundation

Table 6: 10 Major Items of Vegetables/Fruits Exported to the Middle East

in 1996-97
Rank- Volume Value Avg. Price
Ing Name of Crop ‘000’ Kg % US$ US$/Kg
1. Bitter Gourd 2,086 16.6% 2,514 1.20
2. Yard Long Beans 1,827 14.5% 2,205 1.21
3. Green Chilly 1,135 9.0% 1,357 1.20
4. Potato 1,084 8.6% 1,306 1.21
5. Snake Gourd 795 6.3% 956 1.20
6. Stolon of Taro 658 5.2% 793 1.20
7. Pointed Gourd/Paleval 600 4.8% 721 1.20
8. White/Wax Gourd 505 4.0% 607 1.20
9. Spiny Gourd 438 3.5% 726 1.66
10. Green Papaya 418 3.3% 503 1.20
3,048 24.2% 3,931
Total of Survey 12,597 15,620 1.24
Source: Hortex Foundation.

It appears from the above tables that green chilly is the number one export item to the UK,
followed by stolon of taro, taro tuber, egg plant, snake gourd, yard long beans, bottle gourd and green
papaya, while for the Middle East market, the main export items are bitter gourd, yard long beans,
green chilly, potato, snake gourd, stolon of taro, pointed gourd, white gourd, spiny gourd and green

9
papaya. A comprehensive list of vegetables which are reported to be exported from Bangladesh may
be seen at Annex-F.

Although many of the vegetables and fruits are seasonal in nature in Bangladesh and regular
supply round the year is a problem (which is normally a requirement of the buyers), the climatic
variations in major market places gives an advantage as well. As such, more exports are channelized to
the UK during the winter when it is too cold to produce anything there and in the same way, more
exports are routed to the Middle Eastern countries during the summer when it is too hot to produce
anything there. These may be considered as market niches for Bangladeshi seasonal fresh produces.

4.1.4 Market characteristics

Bangladesh is mostly operating in the overseas ethnic markets and customers in the importing
countries are by and large of Bangladesh origin. The Bangladesh Fruits, Vegetables and Allied
Products Exporters’ Association represent exporters of this sector. The Association so far successfully
played their role as the lobbying agency towards the national airline for air space allocation, but they
have hardly undertaken any organized effort to improve the quality level of the fresh produce.
Therefore, a little evidence of quality differentiation, specialisation or improvement is noticeable in
this trade.

4.1.5 Production and packaging system

Main feature of the production system is almost the absence of any direct linkage between the
exporters and the primary producers. Most of the produces are procured through the middlemen. In
general, orders from foreign buyers are received before a few days of shipment and passed on to the
middlemen. They procure the produces from farmers and arrange transportation of the same to Dhaka
on the day of export shipment. The transportation is usually arranged either on the bus top or by
heavily loaded truck. Produces, thus brought to Dhaka, are regraded and repacked in the shed of the
exporters. The packaging materials used by exporters generally consist of bamboo baskets or second-
hand cartons. There is, however, one or two exceptions, where crops are produced through contract
farmers, delivered at the exporter’s packhouse nearby and then precooled, sorted, graded, packaged,
stored and transported to the airport for export, maintaining proper quality and standard throughout the
whole chain.

4.1.6 Air transportation

Air transportation is considered as the biggest obstacle on the way to expansion of fresh
produce export because of acute shortage of air cargo space capacity. No regular cargo flight is
operating from Bangladesh, not to speak of any dedicated flight for horticultural crops. It is only the
passenger flights which carry fresh produces and other perishable cargo. Moreover, readymade
garment has appeared to be a serious competitor of vegetables in the matter of allotment of air space in
the passenger flights. Along with British Airways, the national carrier, Bangladesh Biman is the only
airline operating direct flights to Europe. Other airlines i.e. Gulf Air and Emirates also carry
perishables to Europe through transhipment in the Middle East. Their rates of airfreight are quite
competitive, still the exporters have natural preferences to use the direct Biman flights. To various
destinations of the Middle East, the transportation situation seems to be better, as a large number of
airlines including Biman, Gulf Air, Emirates, Qatar Airlines and Iranian Airlines carry perishables.

4.2 Fruits
4.2.1 Export performance

Export earning from fruits, as reflected in the official statistics of EPB, shows a dismal
picture. This can be seen from Table-7.

10
Table-7: Year-wise Export Earning from Fruits since 1992-93
FY Value (‘000’ US$ Growth (%) Quantity(MT) Growth (%)
1992-93 1310 77.03 1249 93.64
1993-94 1320 0.76 1007 -19.38
1994-95 1960 48.48 1365 35.55
1995-96 3410 73.98 2278 66.89
1996-97 570 -83.28 385 -83.90
1997-98 010 (-)98.25 07 (-)98.20
1998-99 020 100 13 85.71
1999-2000* 5 - - -
2000-2001* - - - -
2001-2002* - - - -
2002-2003* 3 - - -
Source: EPB, * Not shown separately

The above export trend does not conform to the data compiled by Hortex and as reflected in
Table-5, where it can be seen that jack fruit was the second biggest export item to the UK followed by
lemon which is also a fruit, in the year 1996-97. In the Middle East market also, jack fruit and lemon,
although not included in the first 10 items, continue to be the major export items. It, therefore, seems
that mistakes might have crept in somewhere in the compilation of statistics by EPB. It is quite likely
that fruits are generally shown as vegetables in the customs document which constitutes their data
source. It will, therefore, be better and safer to treat fruits and vegetables together and not separately.

4.2.2 Market destination

The market destination of fruits, as shown in the EPB statistics, does also give a partial
picture, because in the absence of proper classification of fruits and vegetables, the information that
enamate are bound to be distorted. This is evident from Table-8.

Table-8: Major Market Destinations of Fruits in the Year 1996/97-2002/2003

(Value in thousand)
2002-2003 1996-97
Countries Dollar % of Total Dollar % of Total
Pakistan 3 93.45 - -
Germany 0.21 6.55 - -
UK - - 53 9.36
Saudi Arabia - 6.22 233 41.17
Kuwait - - 167 29.50
UAE - - 103 18.20
Qatar - - 6 1.06
Japan - - 4 0.78
Pakistan - - Neg. Neg
Singapore - - Neg Neg
Total 3.21 100.00 566 100.00
Source: EPB

The distortion is clearly visible in the export figures of 1996-97. During this year, export of
fruits to the UK was reported to be in the vicinity of US$53,000.00, although in the Baseline Sample
Survey conducted by Hortex, it appears that earning from only jack fruit and lemon and that too by
only a few exporters under survey was a high as Pound Sterling 131,278.00 (Table-5).

4.2.3 Item-wise export

From Sample Baseline Survey of Hortex Foundation it appears that the two most important
items of fruits under export are jack fruits and lemons. Among other fruits, mention may be made of
satkora, jalpai, mango, litchi, banana and papaya.

11
 Market characteristics, production and packaging system as well as air transportation practices
are similar to those of vegetables.

4.3 Flowers and ornamentals

Export of cut-flower is still at its nascent stage of development. As such, no export figure of
cut-flower is reflected in the official statistics of EPB, except in the year 1994-95, when tuberose
worth Tk.16,000 was exported to the UAE as a sample shipment. On the initiation of Hortex
Foundation, this item has again appeared in the export list and about 1,000 Kg of tube-rose flower
were sent to the Netherlands and the UK markets under their promotional pilot programme in the
calendar year 1999.

The buyers’ evaluation of the tube-rose exported from Bangladesh seems to be a mixed one.
On the one hand, they are of the opinion that Bangladeshi flowers are usually light and have short
spike compared to stem length. On the other hand, they tend to believe that despite this problem,
Bangladeshi flowers have good potentiality in the European market because of its unique feature and
structure. It could be marketed year round, although during summer months, price level is likely to be
lower.

In the light of the above observation, Hortex Foundation has taken up the following steps for
export development of tube-rose flower:

• Encourage production of tube-rose in the proximity of Dhaka city of the type and variety
that are in demand in the European market;
• Continue with export of smaller consignments and gradually increase the volume without
compromising with quality;
• Maintain very strict grading standard;
• Use direct flights to the extent possible;
• Use packaging cartons developed by Hortex;

As regards ornamentals, a few sample shipments had been effected to the Netherlands as well
as some of the Middle Eastern countries. It is yet to undergo further development process. Efforts are
underway. Efforts are also underway to develop orchids and foliages for export markets.

5. ENVIRONMENT AND HEALTH REQUIREMENTS IN KEY EXPORT MARKETS

5.1 U.K.

It has already been seen in Section 4.1.2 that the UK is the number one export market of
Bangladeshi fruits and vegetables with an intake of more than one-fourth of the total export in the
sector. This market is, therefore, very important for Bangladesh from the point of view of both
expansion and sustenance of horticultural export.

To survive and sustain in this market, following rules and regulations have to be met.

5.1.1 Plant health requirements: phytosanitary certificate

Some plants and plant produces are prohibited from entering into the UK, while some others
are restricted and must have to be accompanied by phytosanitary/plant health certificate, which is
issued by Plant Health Authority in the exporting country. This certificate is essentially a statement
that the plants or plant produces (fruits, vegetables and flowers) to which it relates have been officially
inspected in the country of origin (or country of dispatch), comply with statutory requirements for
entering into the EC, are free from quarantine pests and diseases and are substantially free from other

12
organisms. Plant and plant materials imported from non-EC countries under Phytosanitary
Certificates are inspected by the Plant Health and Seeds Inspectorate on or shortly after arrival in the
UK, in order to confirm that they satisfy plant health requirement. For all other plant and plant
produces including most of the Asian fruits, vegetables and flowers, phytosanitary certificate is not
legally mandated and is seemingly unnecessary for commercial purposes (Annex-G) . In Bangladesh,
however, phytosanitary certificates are issued by the Plant Protection Wing of the Department of
Agricultural Extension under the Ministry of Agriculture for all horticultural crops going out of the
country.

5.1.2. Standards and regulations: certificate of conformity

A number of fruits and vegetables are subject to EU marketing standards. Currently, 42

produces are required to meet such standards and will require a recognized certificate of conformity
before release into free circulation within the European Union, including the UK. The Horticultural
Marketing Inspectorate (HMI), a part of the Department of Environment, Food and Rural Affairs
(Defra) of the UK normally issues this certificate, following the notification of the importer or
importer’s agent. Where exporting country has met conditions laid down by the EU and is granted
‘Approved Status’, the certificate can be issued by the exporting country as well. At present, 9
exporting countries are approved to issue such certificates. Bangladesh is not in this list. Most of the
fresh produces exported from Bangladesh to the UK are not legally mandated for conformity
certificate yet, although such certificates seem somewhat beneficial for commercial purposes (Annex-
H)

5.1.3 Food Safety

In UK, imported food is subject to general safety legislation which is the responsibility of the
Food Standard Agency (FSA). FSA is also responsible for Food Labelling Regulations which apply to
processed fruit and vegetables and other directives on additives which apply to Jack Fruit Juice and
Honey. So this is not also required for fresh produce.

5.1.4 Environmental and social issues: EUREP-GAP

Apart from statutory requirements and standards, voluntary standards have started playing a
major role in market access and competitiveness in horticultural produces now a days. Concerns about
social and environmental impact of farming have provoked a number of schemes from trade
organizations and retailers to instigate such codes of practice. The major European retailers have
initiated a protocol for good agricultural practice (known as EUREP-GAP) and, with powerful
membership, this is set to become important for exporters of horticultural produces to the UK.
Although, this is not yet a big problem for Bangladesh and seemingly unnecessary for commercial
purposes at the moment, this may pose a big challenge for Bangladesh in the days ahead.
Bangladesh’s preparedness to comply with this voluntary standard is, therefore, becoming growingly
important and hence has been discussed at length in the subsequent Sections.

5.2. Saudi Arabia

Saudi Arabia is the second biggest export market of Bangladeshi horticultural produces,
presently contributing more than 20% of the total export earning in the sector. For export of fruits and
vegetables to the Kingdom of Saudi Arabia (KSA), plant health certificate (phytosanitary certificate)
is a mandatory requirement. This certificate must accompany all shipments of vegetables and fruits to
the KSA, certifying that such exports are free from pests, insects, and other horticultural diseases, and
that they have not been exposed to ionizing radiation. This certificate can be issued by Government
Department of the exporting country.

13
 The ground requirement also calls for maintaining the allowable tolerance level and using
good packaging material. But these are not yet strictly enforced, nor is there any immediate threat for
initiating any stringent regulation/standard for such export like that of the UK.

5.3 UAE, Kuwait, Bahrain, Qatar and Oman

These are also key export markets for Bangladeshi horticultural produces holding third, fourth,
fifth, six, & seventh positions in order of ranking, with an intake of 14%, 13%, 6%, 6%, and 5% of
the total export. Export requirement to these countries are also similar to that of Saudi Arabia and
hence all shipments of fruits, vegetables and flowers to these market outlets must also accompany
phytosanitary certificates issued by the Government agency.

No additional serious requirements and standards as that of EUREP-GAP are yet in place to
comply with. Although different market segments use different quality standards including packaging
and want suppliers to deliver fresh produces accordingly.

6 AWARNESS OF THE QUALITY & ENVIRONMENTAL ISSUES

6.1 Fruits and Vegetables Industry

It has been observed in Sections 3.1 and 3.2 that the share of horticulture in the Bangladesh
agriculture as a whole is not much, only 3.22% of the total cropped area are presently under
cultivation of fruits and vegetables. The movement from subsistence farming to commercial farming
is only of recent time and it could not yet create any noticeable change in the structure of horticultural
production. Again, out of 3,256,000 tons of horticultural production (fruits and vegetables), only 9792
tons are presently exported, which constitute barely 0.3% of the total production. Yet great potentials
exist for expansion of both production and export, because vegetable and fruit crops have already
started to be recognized as high-value crops compared to cereal crops which occupy about 82%(rice
alone 76%) of the total cropped area and a gradual shift, although slow, has started to take place. This
shift is likely to speed up, if marketing is properly organized, both within and outside the country. That
will, however, need increased market access facility side by side with adequate infrastructural facility,
particularly air cargo space, since the only means for external transportation of fresh produces is still
by air.

6.2 Organization of Export: Bangladesh Fruits, Vegetables and Allied Products

Exporters’ Association (BFVAPEA)

Fresh fruits and vegetables are mostly exported from Bangladesh by members of the
Bangladesh Fruits, Vegetables and Allied Products Exporters’ Association. The Association has a total
of 252 members (2001), around 25 of whom are reportedly active in export. These exporters are
responsible for more than 90% of the total export of fruits and vegetables from Bangladesh. Some of
the exporters are understood to be operating under two or more names for various business reasons,
mainly for getting more space in the air craft, as the limited space available is allotted to the active
exporters by lottery.

Most of the exporters belong to the SME group and they normally export to their friends and
relations in various market places. This represents the lowest segment of the market, usually known
as ethnic markets, which are more or less protective in nature, where buyers/customers are mostly
either Bangladeshies or from any nearby Asian country. They are generally less quality conscious, as
they are eager to get a feel for their country/region through the fruits and vegetables they are buying.

Since quality consciousness is not that high at the export level, the exporters mostly remain
satisfied with the traditional way of collecting the produces for export. As has already been explained

14
at Section 4.1.5, they normally procure produces through middlemen who collect orders from various
exporters, go to the producing areas, collect crops from farmers/local markets and arrange to deliver
the same to the exporters on the day of shipment. The exporters then arrange sorting, grading and
packaging in their own traditional way and go for shipment. Neither cool chain is properly used, nor is
followed any standard post harvest handling practices and packaging. As a result, the post-harvest
handling loss is enormous, sometime more than 30%.Their awareness about health and safety
standards of the mainstream market places is moderate and they normally do not bother for their
implementation, as they are not in a position to even fulfill the export orders of their ethnic market
buyers in the present way of delivery, because of acute shortage of air space. Recently, however, some
of the ethnic market buyers even, particularly operating in countries outside the top 7 ones, have
started insisting on quality improvement and packaging development and that has led to limited
changes in packaging and quality management. At least one exporter belonging to the Association and
sending crops to Canada and the UK is understood to have used cool chain partially and 3-4 exporters
have started using improved packaging cartons of international standard made out of virgin pulp to
contain their buyers in such market with support from Hortex Foundation.

6.3 Organization of Production: Farmers Level

Horticultural export crops are generally produced by out-growers having little or no direct
linkage with the exporters. Most of the out-growers are small and marginal farmers. It is observed
from the 1996 Agricultural Census that out of more than 11.8 million farms, about 50% of the farms
were less than of 1 acre and 80% of less than 2.5 acres (2.47 acre = 1 ha) and the farmers are also
mostly illiterate. Given the trends towards the land fragmentation due to the pressure of population and
law of inheritance, the situation has been definitely more skewed today and will be further skewed in
future towards smaller farms.

As the linkage between the exporters and out-growers is extremely loose and as the exporters
are not usually supplying fresh produces to the mainstream importers/buyers, there is no pressure on
them as such, for growing horticultural crops following the quality standards of European countries,
nor is there any organizational arrangement in place to bring them together for doing so. Hence, the
awareness of the small out-growers/producers about the sophisticated quality requirement of the
export market is practically non-existent.

6.4 Initiating the Change: Hortex Foundation

It is in this background Horticulture Export Development Foundation, in short, Hortex

Foundation, was established under the Companies Act, as a non-profit horticulture development and
promotional agency in the private sector. The Foundation started functioning from June, 1996 and
since then, implemented two IDA-funded projects towards the production and management
development of high-value quality horticultural produces for export to high-price sophisticated
mainstream markets of Europe and elsewhere.

The Foundation organized export production through contract farming system involving
BRAC, an NGO, and providing them extensive support and assistance, which included, among others,
training of farmers and their field staff, supplying of seeds and other production inputs, making them
aware of the market requirements, assisting them to introduce EUREP-GAP and other quality
measures, providing them training on post harvest crop management, helping them set up a packhouse
in the production area with pre-cooling and cooling facility, developing quality packaging materials of
international standard for them, arranging reefer trucks for transportation of their export crop to airport
and so on and so forth. All these were done after the mainstream market outlets in the UK, the
Netherlands, Belgium and France were identified and contacted and their technical requirements were
assessed.

15
 Initially, BRAC was conceived of as a producer organization only and a few private sector
farms were introduced to the market for export of their produces under an contractual agreement, but
ultimately that didn’t work. Finally BRAC (when the private exporters declined) had to be introduced
to those market contacts and eventually export started in 1997-98 (July-June) for the first time to the
non-conventional West-European markets, beyond the horizon of traditional ethnic markets. Export
started with french bean, which was absolutely a new crop for Bangladesh and then expanded to other
high-value Asian crops like green chilli, bitter gourd, yard long bean, okra, etc. Fruits, especially baby
pineapple (honey queen variety) was also exported to the UK market and cut-flowers (tube-rose) to the
Netherlands. Thus, with the support and technical assistance of Hortex Foundation, BRAC succeeded
in exporting more than 1300 tons of quality horticultural produces (fruits and vegetables) from July,
1997 through March, 2003. Besides, 1 MT of tube-rose flowers and 1,000 number of ornamental
plants were also exported by 3 private sector firms to the Netherlands during the period.

Hortex also organized and is still organizing a series of seminars and workshops to make the
stakeholders, including exporters and producers, aware of various quality requirements and regulations
that are increasingly being put in place under SPS and TBT as well as various voluntary standards that
are taking place like EUREP-GAP.

6.5 Exporting Quality Produces: Bangladesh Rural Advancement Committee

(BRAC)

BRAC is the largest NGO in the country. In recent time, they are also getting involved in
business. Their business activities have already spread to multifarious areas such as handicrafts,
handlooms, dairy products, agricultural produces including horticulture, tea production, university
education, banking, etc. Almost all of these activities have got direct backward and forward linkage
with social and rural development of the country. In horticulture, Hortex involved BRAC for the first
time in 1997 to organize contract farming for production of quality french bean for export to
mainstream international markets. Since BRAC has a wide rural network as well as a big clientele
group of small and marginal farmers, it was easy for them to get the farmers organized and go for
quality production. Hortex supported them in developing packhouse with appropriate cool storage
facility and trained their field staff as well as contract farmers on production technology, harvesting,
post harvest management, packaging and transportation. Necessary organizational structure for this
new activity was also suggested by Hortex and accordingly adequate technical manpower and logistics
were put in place in the production centre and for marketing by BRAC.

Thus, like other sectors, the successful journey of BRAC started in horticultural export sector
as well, initially as a producer organization and subsequently as a producer-cum-marketing
organization. Today, BRAC is the only organization in Bangladesh which is organizing quality
horticultural production through the out-growers. Their contract farmers have already been trained
under EUREP-GAP and they are awaiting the formal audit and inspection for EUREPGAP
certification within a month and exporting the same in the mainstream horticultural markets in Europe,
Middle East and South-East Asia. With one crop and four markets they started and now they have
diversified into more than 20 crops and 15 markets in various directions. Presently, their export is
around US$1 million a year, which is about 10% of the annual national horticulture export of
Bangladesh.

6.6 EUREP-GAP

It, thus, appears that in spite of the extensive awareness campaigns undertaken by Hortex and
some other organizations, the realization in respect the Good Agricultural Practice is, so far, very poor.
Only one production and export organization (BRAC) is producing the EUREP-GAP compliant
produce at the market, which is going to be certified as such soon. BRAC’s farmers are, in general,
literate and properly trained under their social and education development programme and every

16
contract farmer of BRAC is capable of maintaining proper EUREP-GAP documentation under their
guidance. All production inputs are also normally supplied to the farmers by BRAC, the price of
which is subsequently adjusted with the payment on delivery of crops. This facilitates easy
monitoring of MRL and traceability. No other companies/producers are presently following this
practice, nor are they fully aware of the necessity of the introduction of EUREP-GAP for export
purpose.

6.7 Development of Super Market

Development of supermarket is a recent addition in domestic retail section of Bangladesh.

This has started appearing less than 5 years ago. With the success of pioneers in this area, new
investors are getting attracted and new outlets are coming up in quick succession. To-date, there are
about 30 supermarket stores operating in the country as a whole, of which 22 are located in Dhaka,
the capital city. Although the coverage of supermarket chains is still very low, not even one percent of
the retail sector, they have started creating an impact on quality production of horticultural crops and
consequently, the farmers are getting increasingly exposed to such requirement. IPM farming, organic
farming, etc, although still very limited, are getting increasingly popular. But due to lack of proper
monitoring in product differentiation and post-harvest handling practices, the farmers could not yet get
the benefit as expected.

7. EXISTING MECHANISM FOR INFORMATION GATHERING,

PROCESSING AND DISSEMINATION

A number of agencies and organizations, all in the public sector, are officially working in this
area. The agencies and organizations involved in the existing mechanism to implement the quality and
standardization requirement do not at all seem to be interwoven and closely knitted and as such,
information gathering, dissemination and follow up is not coordinated and often do not reach the core
target groups/stakeholders. This is, however, no peculiar for Bangladesh, many other countries in this
region also suffer from the same problem.

7.1 National Enquiry Point

At the top of the mechanism is WTO Cell in the Ministry of Commerce, which is the National
Enquiry Point. This Cell is officially responsible for, among others, gathering, processing and
dissemination of information regarding new and forthcoming environment and health related measures
and standards under SPS, TBT and other similar matters. There has been a National Advisory
Committee at the top to advise on all WTO related matters and assist the government in formulating
appropriate strategy and policy. The Committee consists of representatives from all concerned
Ministries, agencies, private sector entities and research as well as law firms. Minister for Commerce
is the Chairman of the Committee, while Director General of WTO Cell is the Member Secretary. The
National Advisory Committee is assisted by five working groups as follows:

(a) Working Group on Agriculture, SPS and other related matters. This working
group is located in the Ministry of Agriculture and headed by a Joint Secretary.

(b) Working Group on Trade and Services. This working group is located in the
Ministry of Commerce and headed by a Joint Secretary.

(c) Working Group on TRIPS, TRIMs and TBT. This working group is located in the
Ministry of Industry and headed by a Joint Secretary.

17
 (d) Working Group on Market Access, ATC, etc. This working group is located in
Bangladesh Tariff Commission and headed by its Chairman. The line Ministry of the
organization is the Ministry of Commerce.

(e) Working Group on Customs Valuation, PSI and Others. This working group is
located in the National Board of Revenue under the Ministry of Finance and headed
by its Member, Customs.

The above working groups meet periodically and review the related matters and disseminate
relevant information to the stakeholders through Departments/ Directorates/ Institutes/ Corporations
working under the concerned Ministries. In the same way, the working groups also collect feed
back/comments on various policy issues relating to the implementation of rules and regulations and
standardization being imposed by the foreign countries and pass on the same to the National Enquiry
Point either directly or through the National Advisory Committee.

7.2 Working Group on Agriculture, SPS, and Other Related Matters

Out of the five working groups, the one on Agriculture, SPS and other related matters virtually
covers other Ministries as well and each of the line Ministries again has got various field level
organizations through which it works. For purposes of this study, however, it is important to note what
are the relevant agencies through which the Ministry of Agriculture works. These are as follows:

7.3 Department of Agricultural Extension (DAE)

The DAE is the largest extension service provider under the Ministry of Agriculture having a
wide network of field offices across the country. Its mission is to “provide efficient and effective need-
based extension services to all categories of farmers to enable them to optimize the use of their
resources in order to promote sustainable agriculture and socio-economic development”. To
implement its mission effectively, DAE has adopted a new extension policy that emphasizes food
security, crop diversification, soil fertility, environment protection and gender dimension in the
context of pro-poor service environment.

DAE’s Block Supervisors cover each and every nook and corner of the country, however
remote it is, to provide extension services at the farm level. They are also responsible for field
application of the research output for better cultivation and better diffusion of produces. DAE is
presently implementing a number of donor and GOB-funded projects for horticultural development in
Bangladesh, which include, among others, projects on IPM, Crop Diversification, Irrigation
Improvement, Integrated Area Development, Seed Production, Storage and Distribution, Small-holder
Support, Integrated Agriculture Nutrition, Command Area Development, Food Security, etc.

Although DAE is not specifically working for export-oriented production programmes, yet its
work directly or indirectly benefits export production of horticultural crops, as it has a unique network
to reach each and every farmer to make them aware of the developments that are taking place in the
markets, both local and international. So the field offices of DAE could constitute a good instrument to
disseminate information to the field level stakeholders on various environmental and health issues,
required to be implemented for export production, if they are properly organized, trained and
motivated. Unfortunately, such orientation is yet very much limited and not up to the desired level.

7.4 Plant Protection Wing of DAE

Plant Protection Wing of DAE is, however, directly involved in implementation of plant
health regulations through issuance of phytosanitary certificates and providing quarantine certificates.
It is, therefore, working more as a regulatory body than as an extension body. As such, information

18
dissemination and follow up is not generally considered as its main function, although it belongs to the
national extension agency and training is also one of its areas of activities. The Wing consists of five
sections, i.e., Plant Quarantine Section, Pesticide Administration and Quality Control Section,
Operation ( Aerial & Forecasting) Section, Surveillance and Forecasting Section and Integrated Pest
Management Section. Bangladesh, though a agricultural country, has to import bulk quantity of seeds
and other plants and plant products. Annually, on an average 150,000 tons of plants and plant
products are imported into Bangladesh, for which plant quarantine inspection is needed and this is
provided through 15 quarantine check posts of this Wing set up at 15 different entry/exit points to and
from the country.

Similarly, different commodities of plants and plant products are also exported to other
countries annually. Presently, about 350,000 tons of various agricultural commodities mainly
consisting of raw jute and jute products, handicrafts, as well as fruits and vegetables are being
exported. These products are inspected before export and phytosanitary certificates issued. The
practice followed for issuing phytosanitary certificates for fruits and vegetables is like this. The
exporters notify the Plant Protection Wing in writing in prescribed form accompanied by the evidence
of payment of required fee in a bank, at least 24 hours before the shipment time. The inspection
team/inspector then visit the packhouse of the exporter, inspects the export consignment and issues the
certificate. This inspection is, more or less, a visual observation and does not usually involve
laboratory/ chemical test. It also seriously lacks modern laboratory and testing facilities. It may be
mentioned that Bangladesh is a signatory to International Plant Protection Convention (IPPC). It is
also a member of Asia & Pacific Plant Protection Commission with express commitment to formulate
rules and regulations appropriate for plant protection and quarantine measures. Accordingly, Plant
Quarantine Legislation was formulated for the country and this Wing of DAE is the custodian and
implementation agency of this Law. Updating of the Law through reenactment is also the
responsibility of this Wing.

7.5 Bangladesh Agricultural Research Institute (BARI)

BARI is a research organization under the Ministry of Agriculture. There are a number of
research organizations, the most relevant one in context of fruits, vegetables and flowers is BARI. It is
also quite a big organization with various research outstations apart from its main office in Dhaka. The
organization has got 3 divisions, each looking after research, support services, and training and
communication. The main mandate of BARI is to undertake extensive and intensive research work to
develop new variety of seeds and protocol for improved production and cultivation of various
agricultural crops, other than rice, jute, sugarcane and tea for which there are separate research
institutes. BARI has a Horticulture Research Centre as well, which is specifically responsible for
development of improved varieties of various types of fruits, vegetables and flowers for better
production and marketing.

Although BARI does not have any direct role in implementation of environmental and quality
standards imposed by various export markets, it is also directly or indirectly contributing towards the
better quality management of horticultural produces through organizing seminars and training
programmes at various levels on production technology, post harvest handling, quality control, etc.

7.6 Bangladesh Agricultural Development Corporation (BADC)

Bangladesh Agricultural Development Corporation happened to be one of the largest sector

corporations under the Ministry of Agriculture in the past, looking after irrigation, feretilizer and seed.
Its structure has, however, been down-sized now in the context of the privatization process of the
government policy. Most of its activities have also been greatly reduced. Presently , its main activity
centres around the supply of foundation seeds to the farmers, although it is also doing limited activities
in other areas as well.

19
 In the field of horticulture, it is, however, doing some good work through Horticulture
Development Project. Under this project, it has set up 9 horticulture centres across the country and has
been trying to develop quality horticultural produces, particularly fruits and vegetables for increased
supply, both in the internal and external markets. It is also organizing various types of training
programmes from time to time including farmers’ training to give them orientation for improved
production and marketing practices. BADC has created cold storage and packhouse facilities at the
main international airport of the country in Dhaka to assist the exporters in preshipment packaging and
storage of export produces.

7.7 Bangladesh Standards and Testing Institution (BSTI)

The organization directly responsible for setting up of national standards and harmonizing
national standards with international standards is the Bangladesh Standards and Testing Institution. It
is under the Ministry of Industry and works as the National Focal Point in standard setting and
harmonizing. As a member country, Bangladesh follows/adapts Codex Food Standards and BSTI is
the contact point in this matter. As the contact point, it regularly receives Codex standards,
documents, technical laboratory tests, etc. and these are consulted by the experts engaged in
preparation of food standards and implementing food control programme. BSTI is also a member-
organization of ISO and represents in two of its Technical Committees. It has so far formulated
17,000 national standards including over 300 for food and horticultural products and services and also
adapted ISO 9,000, ISO14,000 and HACCP as Bangladesh standards.

BSTI standards are not, however, at par with international standards and harmonization
process with the international standards is also very slow, nor is there enough laboratory facilities and
implementation mechanism within BSTI to enforce quality standard, particularly in the horticulture
sector. Moreover, BSTI’s work in fresh produce is virtually negligible.

7.8 Export Promotion Bureau (EPB)

Export Promotion Bureau, Bangladesh is the National Focal Point for promotion of export of
all export-worthy commodities and products including horticultural produces. It is also represented in
the WTO related National Advisory Committee and two of its five Working Groups. relating to
Market Access and Customs Valuation. EPB works as the main executive arm of the Ministry of
Commerce in export promotion and development. But in the matter of gathering, processing and
disseminating information of international standards and environmental and health measures, it could
not also do much either, excepting arranging some sporadic seminars here and there, mostly in the
urban areas. It neither has any technical expertise, nor does it has enough trained manpower to go to
the field level stakeholders and give them export market orientation. Although they have some linkage
with private sector chambers and associations and some of them are also represented in their
Governing Body headed by the Minister for Commerce, the information gathering and dissemination
mechanism, particularly in SPS and other related matters proved to be week and inadequate.

7.9 Bangladesh Tariff Commission (BTC)

Bangladesh Tariff Commission which holds the office of the Chairman of the Working Group
on Market Access is more a research based advisory body to the Government of Bangladesh in the
Ministry of Commerce and has little responsibility for dissemination of information to the bottom
level stakeholders. Whatever information it could gather and process, are normally used for policy
analysis to advise the government and organize national level seminars and workshops to initiate the
dissemination process. This sort of seminars and workshops for purposes of policy dissemination
among the stakeholders are organized under the newly set up International Cooperation Wing of the
Bangladesh Tariff Commission.

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7.10 Bangladesh Foreign Trade Institute (BFTI)

BFTI is a non-profit public-private partnership and independent institution. The line Ministry
is the Ministry of Commerce. Its main mandate is to act as a think-tank for the government and
private sector on foreign and international trade, including negotiation on bilateral, regional and multi-
lateral trade. Its activities also include providing training to government as well as private sector
representatives, particularly trainers’ training, on various international trade related issue, including
SPS and other related matters.

This Institute was established only last year (2003) under Societies Act, and and could not yet
create any impact. Its role is also limited to the Trainers’ Training on SPS and other related matters
and as such awareness creation and market-orientation down the stream does not fall within its range
of activity.

7.11 Private Sector Involvement

In implementation of SPS activity and other WTO related matters, private sector at the level of
leading Chambers of Commerce and Industries and product specific Associations are also involved
and they are represented in both the National Advisory Committee and the various Working Groups.
But their participation is more or less limited at the policy level only and not involved in the process of
downstream implementation. Like many government agencies, they also organize
seminars/workshops from time to time, either in collaboration with international agency like ITC
(DCCI) or with their own capabilities (FBCCI), but that too seldom trickle down to horticultural
farmers and exporters who mostly remain unaware, uninformed and unconcerned as before.

7.12 Efficiency and Effectiveness of the Mechanism

It does, therefore, appear that at policy level, some sort of a system has been put in place and it
is working fairly well ( although regular meetings of the various working groups as well as National
Advisory Committee are still a problem area), but along the down stream at the operational level,
implementation mechanism of gathering, processing, and disseminating information regarding
environment and health related matters and standards is practically non-functional. Whatever
mechanism exists, it is so loose that there is virtually no coordination between and among the agencies
involved. As a result, proper follow up and monitoring system is neither in place, nor is it properly
working. Although some work has been done and is still being pursued for overall quality
improvement and upgradation of fruits and vegetables, this has little linkage with export market.
Indirectly, however, various projects relating to IPM/organic farming (uncertified) here and there are
contributing to the quality production and enhancement of the produce marketability, but this is yet at
the pilot stage and not properly organized to establish linkage with the export market. The post-harvest
handling problem also remains.

8. CURRENT ADJUSTMENT APPROACH

8.1 At Policy Level

At policy level, it is the responsibility of the concerned ministries to view WTO web site
regularly and analyze the changes that are taking place in the export market from time to time due to
enactment of various rules and regulations under SPS and other issues and initiate adjustment policies
accordingly to win over the circumstances. Their responsibility also includes sending notifications to
the WTO with regard to any policy changes that are taking place within the country, whether domestic
support measures or any trade related support measures. For SPS and other related matters, Ministry
of Agriculture is acting as the National Notification Point. So far as sending such notifications by the
SPS National Notification Point is concerned, this has more or less become systematized, although

21
there were some inordinate delays in the past. But so far as the impact analysis of external rules and
regulations of export markets is concerned, the system does not seem to be working at all and as such,
little adjustment, if any, is taking place on the ground. For obvious reason, no national early warning
system also works, nor is there any sub-regional and regional warning system found in operation.

8.2 At Field Level

As has already been stated under Section 6.2 that the members of the Bangladesh Fruits,
Vegetables and Allied Products Exporters Association are responsible for over 90% of the export of
fresh produces from Bangladesh. The members of the Association are little concerned with the
changes that are taking place in the mainstream market area in the UK, as their exports are mainly
directed to the lowest end ethnic market outlet and they do not find any problem in accessing to that
market segment with the present nature of their exportables yet. Same is the case with the Middle
Eastern countries as well. As a result, they are still following the traditional practice of market-to-
market approach, rather than production to market approach, which is the need of the day. Moreover,
they are neither properly oriented to the adjustment requirement, nor do they feel to bring about such
adjustment, as their export is not presently suffering. As a consequence, no production level
adjustment is also taking place in a way expected, because the farmers are neither aware of the
adjustment need, nor are they concerned about it.

As stated before, there are, however, some work going on in the area of IPM for introducing
an effective, safe, sustainable and economical crop production system, so as to discourage the
application of harmful pesticides to the crops. Various donor agencies, particularly UNDP, FAO and
DANIDA are supporting this programme through DAE, BARI and NGO and a general awareness is
being created among the farmers, but the coverage of the programme is still very limited and as such,
it cannot leave a perceptible impact on export.

9. ELEMENTS OF PROACTIVE APPROACH TO NATIONAL ADJUSTMENT

POLICY
9.1. Proactive Approach Versus Reactive Approach

Proactive Approach as against Reactive Approach to respond to standardization need in the

international market may, possibly, be identified as follows:

Strategic Response to Standards in Trade

Approach Reactive Proactive
Exit Wait for standards and give Anticipate standards and
up leave market
Loyalty Wait for standards then Anticipate standards and
comply comply ahead
Voice Complain when standards are Negotiate before standards
applied are applied

9.2 Policy Level

At policy level, the government machinery responsible for streamlining the adjustment
process to effectively respond to the international standardization need in various sectors including
horticulture claims that its approach is always proactive and never reactive. It tries to anticipate the
impacts of the various standards being imposed by the developed countries and get prepared
accordingly to comply with such standards, so that the country is not caught completely unaware. It
also claims that it cannot afford to adopt any reactive approach, as the country is to survive and sustain

22
in export business and horticulture is considered as one of the few sectors having potentials for export
from Bangladesh.

But the claim cannot be substantiated in the absence of any appropriate coordination and
monitoring system throughout the supply chain, as has already been seen in the preceding sections,
nor is there any adequate proof of responding to standard in time. Even in shrimp industry, which is
one of the most successful export sectors, the country could not get adjusted to HCCAP standard well
ahead of time and had to face import ban at a particular point of time. When this ban was imposed,
the whole machinery got reactivated and situation gradually started improving. This is loyalty, no
doubt, but can not possibly, be considered as proactive approach. Similarly, although in multilateral
forum, Bangladesh plays its role as a mouthpiece of LDCs, proactive voice is hardly heard in any
important bilateral negotiation within the framework of multilateral system, particularly in respect of
standard setting by the import countries in areas, like horticulture.

9.3 Operational Level

This is, however, nothing peculiar for Bangladesh. All developing countries, particularly
LDCs, are more or less in the same boat. As compared to developed countries, these countries are
more vulnerable to the adverse effects of the environmental (health) measures in market access and
competitiveness. There are various reasons for this, some of which are as follows:

• Lack of infrastructural facility;

• Lack of access to information;
• Lack of coordination and monitoring system;
• Limited technology choice;
• Inadequate access to environment-friendly raw materials;
• High compliance cost, particularly for SMEs;
• Lack of knowledge and skill;
• Vulnerability to market access barriers;
• Diseconomics of scale of operation;
• Difficulties in harmonizing;
• Organizational problems of SMEs.

In view of these problems and difficulties, neither exporters, nor growers can afford to adopt
proactive policy and as such, prefer to remain satisfied with the existing pattern of business. No impact
assessment study has also been done that way which can reveal the problems and as such, the business
entities will suffer in the absence of proactive approach.

9.4 Supply Chain Management

The situation has further been aggravated by the private sector operators in the export markets.
They are increasingly demanding stringent environmental/health related measures to comply with by
the suppliers. Thus voluntary standards/codes and benchmarks are proliferating. The EUREP-GAP is a
case in example. It seeks to provide a framework for independent verification of minimum social,
environmental and food safety standards throughout the supply chain for compatible production of
fruits, vegetables and flowers. Such measures are creating complications, as the farmers in Bangladesh
are small and mostly illiterate. They can neither respond to questionnaires, traceability and audit
requirements, nor can they afford to bear the additional cost involved in the implementation of the
EUREP-GAP. This standard is also creating a bias towards the operation of large farms to the
disadvantage of the small farms which are likely to be crowded out in course of time. The supply
chain management can, however, offer opportunities or private sector cooperation, if properly
organized and found cost effective.

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9.5 Market Assessment and Cost of Compliance Analysis

For setting up an adjustment strategy to environmental and health requirements in

international markets, it is important to analyze what impact it is going to have on the horticulture
sector as an export industry; and the country as a whole, both in the short run and in the long run.

If the benefit of the adjustment is more than the cost involved, it will be justified, otherwise
not. It, therefore, requires serious study on impact assessment and cost of compliance. Win-win
situation could only arise, if such study shows increased resource efficiency or premium export price.
In the absence of any such serious study in Bangladesh, no conclusion can be arrived at as to whether
proactive adjustment policy in horticulture export sector will strengthen Bangladesh position in the
market places in the face of severe competition with other horticultural produce exporting countries. It
is not enough to know that Bangladesh is traditionally an agricultural country with suitable soil and
climatic condition and having abundant supply of inexpensive labour; it is also important to know
what benefit the country is going to derive through the adjustment process vis-a-vis the competing
countries.

9.6 National Standard Setting, Implementation of Foreign Standards and Compliance

Assessment Procedures

These issues have already been discussed before. BSTI is the national institution responsible
for national standards setting and monitoring. Its role also includes harmonization of the national
standards with the international standards and exploring the possibility of regional cooperation in this
matter. It has, however, been seen in Section 7.7 that it has established quite a good number of
national standards, but harmonizing with international standards, particularly in view of the changes
that are taking places from time to time, is relatively slow and its monitoring system is also weak. So
far as the compliance procedures are concerned, particularly in horticulture sector, it is the
responsibility of the Plant Protection Wing of the DAE, as the issuing authority of the phytosanitary
certificates. While issuing the certificates, it is supposed to examine whether the produces meet the
specific requirement of the market where they are going and even undertake testing, if necessary, but
in actual practice, it neither has adequate laboratory facilities for residue testing as per market need,
nor does it go in such depth. As a result, it normally issues certificates on the basis visual inspection
in the same way for all crops for all the countries. In that respect, the compliance and conformity
assessment procedures being followed is not up to the desired level.

9.7 Pre-standard Setting Consultation in Export Markets and Participation in International

Standard Setting Meetings

This is normally done and the concerned government organizations are usually represented in
pre-standard setting consultation and also in sectoral standard setting discussions. This is more or less
carried out as a routine work without putting in serious home work. As such, it needs more
professional approach and calls for need-based capacity build up. It is also important to see that
consultation meetings are represented by the technical people who are experienced and knowledgeable
in the matter. At policy level consultation also, policy makers of concerned areas should represent
for better participation and greater benefit.

10. CAPACITY BUILDING

10.1. A Total Approach Needed

It appears from the preceding Sections that like many other developing countries, particularly
LDCs, Bangladesh needs capacity building in almost all areas to cope up with the emerging situation

24
in the export markets of horticultural produces. This means that there is a lack of awareness,
infrastructure, coordination and cooperation as well as institutionalization of such activities. In
addition, the adjustment policies are mostly reactive rather than proactive in nature, which also has to
be taken care of. Considering all these aspects, the means of capacity building may be identified as
follows:

• Awareness and recognition:

• Users
• Implementers
• Policymakers
• Physical infrastructure
• Human resources/training
• Institutional build up

The capacity building should not also get confined to government institutions only, rather it
should also cover private sector organizations, like Hortex Foundation, Chambers of Commerce,
product associations, as well as civil society. This should be done in such a way that the system works
in a coordinated way, creating awareness up to the ground level and organizing farmers for quality
production and channelizing market-oriented export through market mechanism. Institutional support
for all concerned agencies and policy support for the government should also be forthcoming. NGOs
could also be synchronized in the process. The capacity building structure should, therefore, look like
this:
Government

Institutions

Private Sector Civil Society

10.2 Capacity Building to be Sustainable

It is quite clear that Bangladesh, like many other developing countries, has inefficient
technical capacity to efficiently manage the highly complicated matter of environmental and health
issues. Typically, essential facilities like modern laboratories are not there, whatever laboratories are
there, they are not adequately staffed with trained manpower, scientific equipment are mostly obsolete
and there is no systematic collection and recording system of information. Infrastructual facilities like
packhouse in the production area are practically non-existent. High cost of conformity assessment,
including testing in threshholds of residues is also a serious problem. This situation is unlikely to
improve in the short run and as such, the capacity building support should also take the form of
capacity development support over a period of time in a sustainable manner.

10.3 Technical Assistance

As a developing country with the status of an LDC, it is neither possible, nor feasible for
Bangladesh to undertake such a huge capacity building task ahead. As such, technical assistance and
financial support could be the only way out and this has also been adequately provided for under
Articles 10 and 11 of the final Uruguay Round Agreement. Although some form of technical
assistance initiative is visible here and there, nothing is understood to have yet been concretized to

25
facilitate the fulfillment of environmental and health requirements of external markets and thus ease
market access. Even if, one or two such piecemeal initiative materializes, it will not solve the
problem, as the problem is multi-facet and varied in nature. This, therefore, calls for a holistic and
systematic approach in technical and financial assistance programme of various donor agencies, so
that the capacity building need, in its totality, is properly assessed and addressed. International
organization like UNCTAD may possibly undertake this coordinating role of capacity building as well
as capacity development in the area of environmental/health requirements, market access and export
competitiveness of horticultural produces from Bangladesh.

11. CONCLUSIONS AND RECOMMENDATIONS

11.1 Conclusions

Although not yet a major supply source, Bangladesh seems to have a high potential for export
development of horticultural crops, particularly in fruits and vegetables. She has got the natural
advantage of favourable soil and climatic condition and abundant supply of inexpensive labour force.
This, coupled with the market niches in Europe in winter and in Middle East in summer, holds a good
prospect for export growth in future and these are present market directions as well. More than 95% of
the Bangladeshi fruits and vegetables are now finding their way to the UK and 6 other Middle Eastern
countries (Saudi Arabia, UAE, Kuwait, Qatar, Bahrain and Oman) , but this 95% is nowhere near the
total market requirement, not even 1% of the demand of the UK market alone. It is, thus, the supply
problem and not the demand problem that appears to be a disturbing factor till today.

But things have started changing now. Although the main market outlets are still following
liberal policies for import of Asian fruits and vegetables for ethnic market segment, the operators in
the upstream and wholesale market outlets have started asking for more restrictive standards to comply
with by the supply sources for health and environmental reasons, the compliance of which is
extremely difficult for a developing country like Bangladesh which is highly dominated by small
holders in the production as well as distribution and marketing process. The government machinery is
not also properly geared up to take up the challenge, nor is the private sector yet ready to bring in the
desired transformation. There is a serious lack of orientation, follow-up, monitoring and coordination
at all levels and no efforts are visible for proactive adjustment approach in respect of impact
assessment, compliance requirement and supply management.

To survive and sustain in the export market in this context and to ensure and enhance market
access and export competitiveness, capacity building is an important requirement. This capacity
building has to be multi-facet and comprehensive, so that all the areas and sectors needing such
support are taken care of and a total approach is followed. Broad based financial and technical
assistance and that too in a coordinated manner is, therefore, the need of the country at the moment.

11.2 Recommendations

To meet the challenges of the stringent sanitary and health requirements of the market places
and ensure to supply clean and safe food from farm to table for enhancing market access and export
competitiveness, following recommendations are, therefore, put forward:

• Impact assessment study: A serious study of the possible impact of the noncompliance
to the stringent environmental and health standards, both mandatory and voluntary, being
put in market places, is an immediate necessity.

26
• Study of cost of compliance: Cost of compliance to EUREP-GAP and other food safety
standards also needs to be studied, taking Bangladesh’s peculiar agri-production structure
in view, with an objective cost-benefit analysis, justifying such transformation.
• Awareness and recognition: That the traditional way of exporting fresh fruits and
vegetables is a problem has to be properly understood and recognized by all concerned
agencies, policy makers, implementers and users, so as to promote widespread
implementation of food safety standards, including orientation and organization of the
small farmers.
• Physical infrastructure: Physical infrastructure, particularly in the area of packhouse,
cool chain, laboratory services and quality management need to be put in place to respond
effectively to the buyers’ requirements regarding health and environmental issues.
• Human resources/training: To ensure that regulatory measures are carried out, as
intended, and coordinating role is played, as desired, trained and motivated staff is
necessary. Besides, hand-on training with practical exercises is relevant to quality
production and supply management, Research and Development should also go hand in
hand.
• Institutional capacity build up: For taking care of all these issues and measures
effectively and efficiently and ensuring proper monitoring and follow up system,
institutional capacity building is a sine quo non. This institutional capacity building
should take place in government machinery, private sector including NGO and even civil
society, so that the approach taken is a total approach with widespread and well-
coordinated involvement of all the stakeholders.
• Donor assistance: As a developing country with the status of an LDC, it is neither
possible, nor feasible for Bangladesh to undertake such a huge capacity building task.
This, therefore, calls for donor support in the form of both financial and technical
assistance and that too in a coordinated and comprehensive way to maximize the benefit.

27
 ANNEX-A

GENERIC OUTLINE FOR THE NATIONAL CASE STUDY ON ENVIRONMENTAL

REQUIREMENTS, MARKET ACCESS/ENTRY AND EXPORT OMPETITIVENESS IN THE
HORTICULTURE SECTOR

The national case study on environmental requirements, market access/entry and export
competitiveness in the horticulture sector (fruits, vegetables and flowers) shall be structured as
follows:

1. Identification of environmental/health requirements in key export markets:

Firstly, the study shall identify the environmental and health requirements in key export
markets. The study shall identify approximately 3 to 5 key export markets, of which one at
least in the developing world if relevant, and for each market identify the environmental and
health requirements for the sector in analysis.

2. Awareness on the issue and effectiveness of information management:

The study shall report on the level of awareness of national producers, in particular of Small
and Medium-sized Enterprises, on environmental and health requirements in key export
markets.

Moreover, the study shall identify which are the existing mechanisms(such as national enquiry
points) for the gathering, processing and dissemination of information on new and
forthcoming environmental and health requirements in key export markets and analyze the
level of efficiency and effectiveness of such mechanisms. In particular, report if there are any
national or sub-regional early warning systems.

3. Current adjustment approach:

The study shall analyze the current adjustment approach, describing what action is taken to
respond to environmental and health requirements in export markets.

4. Elements of a pro-active approach and the need for institutional capacity building:

The study shall underline which are elements of a pro-active approach in the national
adjustment strategies to environmental and health requirements in international markets. In
particular analyze the experience with regard to national standard setting, implementation of
foreign standards and compliance assessment procedures (including opportunities for
harmonization of national standards with standards in export markets) and the possibilities of
regional cooperation in this regard.

The analysis shall also review active participation in (i) pre-standard-setting consultations in
export markets and in (ii) international standard setting for the sector in exam.

Furthermore, the study shall report on (i) whether the potential effect of environmental
measures taken by developed countries is assessed and how; and on (ii) adjustment strategies
aimed at reducing adjustment costs and harnessing developmental benefits of higher
environmental requirements (e.g. improved economic efficiency and export competitiveness).

28
The study shall also identify which are the areas where institutional capacity building is
needed in order to design and implement pro-active adjustment policies to environmental
requirements in key export markets.

29
 ANNEX-B

INDICATIVE QUESTIONNAIRES USED FOR:

A. National Enquiry Point

1. As the National Enquiry Point, what role is the WTO Cell playing? Is there any separate Enquiry Point
on SPS and other related matters?

2. How is the Enquiry Point working, particularly in SPS and TBT matters?

3. Apart from National Enquiry Point, is there any separate National Notification Point? Are the national
notifications regularly sent to the WTO, if so, under which mechanism?

4. What is the mechanism of informing the stakeholders, particularly in the horticulture sector, of any
environment and health related changes (measures/standards) in the export market places? How is the
private sector involved?

5. Is there any national early warning system in this respect?

6. How does coordination take place between and among the various quality enforcement and
standardization bodies? Is there any monitoring system for implementation of quality and
standardization at the field level?

7. What is the current adjustment policy and responding mechanism to environment, health and safety
regulations in horticultural export?

8. Is there any proactive approach in the national adjustment strategies on national standard setting,
implementation of foreign standard and compliance procedures (including harmonization of national
standards) of foreign standard related to horticulture?

9. Has there been any assessment of cost implications in respect of compliance of international food and
safety standards, like EUREP-GAP? If so, what is the level of compliance cost?

10. Whether there has been active participation in: (i) pre-standard setting and (ii) international standard
setting consultations for horticulture crops ?

11. Whether (i) the impact of environmental/health measures taken by the developed countries, particularly
in food and horticulture sector has ever been assessed and if so, how and (ii) any adjustment strategies
aimed at reducing adjustment cost and harnessing development benefit are there in place and if so,
what are the strategies and how do they work?

12. Which are the areas where institutional capacity building is needed in the implementation process of
various measures/standards in horticulture export sector?

30
 B. SPS Related Working Group

1. How frequently does the Working Group meet and discuss about various related matters?

2. Do you regularly visit the WTO web site to see whether there is any new notifications and analyze what
could be their implications on the agribusiness sector for export?

3. How are the downstream stakeholders made aware of the environmental/health related changes that are
taking place in export countries, particularly for fruits and vegetables?

4. What is the coordination mechanism between the Working Group and the various implementation
agencies under the Ministry responsible for bringing in changes in quality matters through training,
extension and advisory services? Is it properly working?

5. Do you involve private sector in such coordination mechanism? If so, how.

6. What is the current adjustment policy approach for adaptation and harmonization of international
standards under SPS and environmental measures?

7. Whether any assessment has been made of the possible effect to environmental/health standards of the
developed countries on the agriculture sector in Bangladesh?

8. Have you ever assessed adjustment cost compliance to international standards/measures being
increasingly imposed by developed countries?

9. Do you feel the need for donor agency support for capacity building to face the challenges ahead under
SPS/health related measures. If so, what are the areas where you feel the capacity building assistance
will be useful?

C. BSTI

1. What is the role of BSTI in respect of SPS and other related measures? How many standards have BSTI
set so far in the area of vegetable sector? Are they in conformity with international standards?

2. What is your present mechanism for monitoring of the implementation of the standards that you set? Is
it sufficient and properly equipped?

3. Do you have enough laboratory facility for setting and implementation of standards?

4. Do you regularly participate in pre-standard/standard setting consultations in export markets? Is it

properly represented?

5. Do you have any future plan to expand the coverage of standardization and implementation? If so, how?

6. What do you think could be the proactive approach in national adjustment strategy to environmental
and health requirements in the external markets?

7. What is the capacity building need that you feel for BSTI?

D. DAE

1. What are the extension services that you are providing to the horticulture sector?

31
2. Are your field staff adequately informed and trained of the changes that are taking place in the export
markets on quality matters?

3. Are your staff passing on the information at the farmers level and providing them adequate training to
adhere to the changing world requirements?

4. How many projects do you presently have and how many of these projects are directly related to quality
and pesticides management? What are the names of the projects?

5. Do you have any systematic approach to transform to quality horticultural production with adherence to
international standards, like EUREPGAP, traceability, MRL, etc.?

6. Do you face any problem in introducing this requirement to horticulture? If so, what are they and how
do you propose to solve them?

7. Can you take the role of organizing the small farmers to produce market-oriented horticultural crops for
supply to exporters? If yes, how do you propose to do that? If not, why?

E. Plant Protection Wing of DAE

1. What standards do you follow for implementation of Plant Protection Law and how?

2. Do you participate in standard setting process? If so, how?

3. How do you inspect fresh produce exportables for issuing phytosanitary certificates for export?

4. Are you aware of the country-wise market requirements? If so, do the phytosanitary cerficates issued by
you satisfy these requirements?

5. Do you have adequate testing and laboratory facilities to meet the quality requirements of import
markets upto their expected level? If no, what are the areas lacking?

6. What are you doing to improve the quality production of horticultural crops in the country? Do you
have any project in this regard? If so, which are they?

7. How do you think that the harmonization process of Bangladesh standards with international standards
can be taken care of? Do you have any role in that?

8. Do you find any distortion in the present organizational structure in the country in respect of quality
management and monitoring?

9. Do you have any capacity building need? If so, which are the areas?

F. Exporters

1. What is the present practice that you follow in collecting fresh produces for export? Do you find any
difficulties in the process?

2. What sort of packaging materials do you use for export of your produces? Are these acceptable in the
market?

3. Where are you exporting now? Do you have any quality problem in the market?

4. Are you aware of the growing environmental/health requirements in the export markets? If so, what are
the measures that you have taken to adjust with such changes?

32
5. Do you have any direct linkage with the producers/farmers for supply of export crops? If not, do you
intend to have it in future?

6. Have you ever heard about the EUREP-GAP, MRL, traceability, etc.?

7. Do your existing buyers want you to send better quality products in better packaging or have they given
you any indication of fulfilling stiffer market requirements in the days ahead?

8. What is the most serious problem that you face at the moment and how you propose to solve it?

9. What is your opinion regarding the activities of your Association? Do think that it should be more
proactive and development-oriented?

G. Producers/farmers

1. How are you producing vegetables/fruits? Do you think vegetables/fruits are more profitable?

2. How do you market your produce? Do you find any problem in the present way of marketing?

3. Do you think that you are getting fair price for your crop? If not, why? What are your suggestions for
improvement in the system?

4. Do you know that indiscriminate use of chemicals and pesticides in the production of fruits and
vegetables is harmful for human beings? Do you want to avoid/reduce its uses?

5. Do you know that your product is also exported and the buyers in the export markets are very conscious
about quality?

6. Do you have any linkage with the exporters of fruits and vegetables?

7. What sort of services do you receive from the extension people? Do they regularly visit you and give
you advice and training on improved methods of cultivation, harvesting and post-harvest management?

33
 ANNEX-C
Area and Production of Horticultural Crops from 1997-98 to 2002-2003
1. Total Cropped Area in acres (1997-98): 34727000
% of
Area Total Cropped Production Yield/acre
Crops (Acres) Area (MT) (MT)
Winter vegetables 296000 0.85 888000 3.00
Summer vegetables 200000 0.58 419000 2.10
Total vegetables 496000 1.43 1307000 2.64
Fruits 456000 1.31 1495000 3.28
Spices and condiments 355000 1.02 317000 0.89
Total Potato 337000 0.97 1553000 4.61
Total horticultural crops 1644000 4.73 4672000 2.84

2. Total Cropped Area in Acres (1998-99): 34082000

% of
Area Total Cropped Production Yield/acre
Crops (Acres) Area (MT) (MT)
Winter vegetables 364000 1.07 1059000 2.91
Summer vegetables 208000 0.61 424000 2.04
Total vegetables 572000 1.68 1483000 2.59
Fruits 458000 1.34 1430000 3.12
Spices and condiments 620000 1.82 396000 0.64
Total Potato 605000 1.78 2762000 4.57
Total horticultural crops 2255000 6.62 6071000 2.69

3. Total Cropped Area in Acres (1999-2000): 35495000

% of
Area Total Cropped Production Yield/acre
Crops (Acres) Area (MT) (MT)
Winter vegetables 366000 1.03 1057000 2.98
Summer vegetables 243000 0.68 502000 1.41
Total vegetables 609000 1.72 1559000 2.56
Fruits 451000 1.27 1404000 3.11
Spices and condiments 623000 1.76 401000 0.64
Total Potato 601000 1.69 2933000 4.88
Total horticultural crops 2284000 6.43 6297000 2.76

4. Total Cropped Area in Acres (2000-01):35408000

% of
Area Total Cropped Production Yield/acre
Crops (Acres) Area (MT) (MT)
Winter vegetables 379000 1.07 1065000 2.81
Summer vegetables 247000 0.70 513000 2.08
Total vegetables 626000 1.77 1578000 2.52
Fruits 473000 1.34 1486000 3.14
Spices and condiments 624000 1.76 397000 0.64
Total Potato 616000 1.74 3216000 5.22
Total horticultural crops 2339000 6.61 6677000 2.85

34
 Annex-C (Continued)

5. Total Cropped Area in Acres (2001-2002): 34615000

% of
Area Total Production Yield/acre
Crops (Acres) Cropped (MT) (MT)
Area
Winter vegetables 362000 1.05 1043000 2.88
Summer vegetables 253000 0.73 524000 2.07
Total vegetables 615000 1.78 1567000 2.55
Fruits 481000 1.39 1547000 3.22
Spices and condiments 623000 1.80 418000 0.67
Total Potato 587000 1.70 2994000 5.10
Total horticultural crops 2306000 6.66 6526000 2.83

6. Total Cropped Area in Acres (2002-03): 35005000

% of
Area Total Cropped Production Yield/acre
Crops (Acres) Area (MT) (MT)
Winter vegetables 366000 1.05 1034000 2.83
Summer vegetables 259000 0.74 591000 2.28
Total vegetables 625000 1.79 1625000 2.60
Fruits 499000 1.43 1631000 3.27
Spices and condiments 626000 1.79 425000 0.68
Total Potato 606000 1.73 3386000 5.59
Total horticultural crops 2356000 6.73 7067000 3.00
Source: Yearbook of Agricultural Statistics of Bangladesh 2000 & 2001 and Statistical Bulletin of Bangladesh,
January, 04

35
 ANNEX-D
EXPORT DIRECTIONS OF FRUITS AND VEGETABLES
IN 2001-2002 & 2002-2003

(Value in thousand)
2002-2003 2001-2002
Countries Taka Dollar % of total Taka Dollar % of total
U.K. 217578 3758 28.38 214284 3733 24.37
Saudi Arabia 175417 3030 22.88 184018 3205 20.93
U.A.E. 106876 1846 13.94 155365 2706 17.67
Kuwait 97316 1681 12.69 94260 1642 10.72
Qatar 49232 850 6.42 59479 1036 6.77
Bahrain 44154 763 5.76 47739 832 5.43
Oman 39094 675 5.10 53021 924 6.03
Singapore 12102 209 1.58 13931 243 1.58
Italy 6538 113 0.85 7774 135 0.88
Germany 5702 98 0.74 13329 232 1.52
France 3082 53 0.40 4684 82 0.53
Malaysia 2484 43 0.32 1570 27 0.18
Uganda 1180 20 0.15 - - -
Greece 975 17 0.13 957 17 0.11
U.S.A 962 17 0.13 2536 44 0.29
Kenya 750 13 0.10 - - -
Ukraine 559 10 0.07 - - -
Netherlands 439 8 0.06 2393 42 0.27
Pakistan 395 7 0.03 66 1 0.01
Sweden 385 7 0.05 143 2 0.02
Bhutan 306 5 0.04 - - -
Bulgaria 263 5 0.03 - - -
Spain 198 3 0.03 - - -
Japan 197 3 0.03 83 1 0.01
Thailand 155 3 0.02 - - -
Australia 132 2 0.02 - - -
Andora 129 2 0.02 176 3 0.02
Taiwan 94 2 0.01 - - -
Belgium 59 1 0.01 2916 51 0.33
Canada - - - 3772 66 0.43
China - - - 2013 35 0.23
Costa Rica - - - 843 15 0.10
Hongkong - - - 3703 65 0.40
Korea Rep. - - - 228 4 0.03
Local Sale - - - 8445 147 0.96
P.N.G. - - - 548 10 0.06
Panama - - - 848 15 0.10
Total: 766749 13243 100.00 879124 15313 100.00
Source: EPB

36
 ANNEX-E
Ranking of 7 Top Market Outlets of Fruits and Vegetables
(1999-2003)

1998-99(July-June) 1999-2000 (July-June) 2000-2001(July-June) 2001-2002(July-June) 2002-2003(July-June)

Rank Country Export Country Export Country Export Country Export Country Export
(US$ M) (US$ M) (US$ M) (US$ M) (US$ M)
1. UK 6.04(34%) UK 3.66(26%) UK 3.23(25%) UK 3.73(24%) UK 3.76(28%)

2. Saudi Arabia 3.14(18%) Saudi Arabia 2.73(19%) Saudi Arabia 2.43(19%) Saudi Arabia 3.21(21%) Saudi Arabia 3.03(23%)

3. Bahrain 2.72(15%) UAE 1.79(13%) UAE 2.07(16%) UAE 2.71(18%) UAE 1.85(14%)

4. Kuwait 1.86(11%) Kuwait 1.75(12%) Kuwait 1.86(15%) Kuwait 1.64(11%) Kuwait 1.68(13%)

5. UAE 1.38(8%) Qatar 1.40(10%) Qatar 0.79(6%) Qatar 1.04(7%) Qatar 0.85(6%)

6. Qatar 0.97(5%) Bahrain 1.12(8%) Oman 0.73(6%) Oman 0.92(6%) Bahrain 0.76(6%)

7. Oman 0.51(4%) Oman 0.51(4%) Bahrain 0.60(5%) Bahrain 0.83(5%) Oman 0.68(5%)
Sub-Total 16.62(94%) Sub-Total 12.96(93%) Sub-Total 11.71(92%) Sub-Total 14.08(92%) Sub-Total 12.64(95%)

8. Others(18) 1.06(6%) Others(25) 1.04(7%) Others(17) 1.08(8%) Others(21) 1.23(8%) Others(22) 0.60(5%)
Total 17.68(100%) Total 14.00(100%) Total 12.79(100%) Total 15.31(100%) Total 13.24(100%)

Source: Bangladesh Export Statistics: 1999-2000, 2000-2001, 2001-2002 and 2002-23003

38
 ANNEX-F

LIST OF THE EXPORTABLE FRUITS AND VEGETABLES FROM BANGLADESH

Sl.No. English name Local name

Exportable Vegetables
1. Bitter gourd Karala
2. Yard long bean Barbati
3. Okra Dherosh
4. Bottle gourd/Dudhi Bottle gourd
5. Ash/wax gourd Jali kumra
6. Snake gourd Chichinga/Kohi
7. Sponge gourd Dundul
8. Green Chilli Kacha Marich
9. Ridge gourd Jhinga/Tury
10. Pumpkin/Sweet gourd Misti Kumra
11. Pointed gourd Patal/Palwal
12. Teasle gourd Kakrol/Kantola
13. Cucumber Shasa
14. Broccoli Sabuj Phulkopi
15. Hyacinth bean/Lablab bean Deshi seem
16. French bean French bean
17. Small cucumber Khira
18. Potato Gool Alu
19. Egg Plant/Brinjal Kalo Begun
20. Taro Pani Kachu
21. Eddoe Mukhi Kachu
22. Coco Yam Dood kachu
23. Yautia Moulavi Kachu
24. Giant Taro Mankachu
25. Aroid Kachu
26. Stolon of Taro Kachur Lati
27. White Yam Mattay Alu
28. Air potato Pesta Alu
29. Elephant foot yam Olkachu
30. Green Papaya Kacha papay
31. Drumstick Shajna
32. Plantain Kacha Kola
33. Banaba Flower Kolar Thor/Mocha
34. Water Lily Shapla
35. Pea seed Motor shuti
36. Stem Amaranth Danta
37. Red Amaranth Lalshak
38. Indian Spinach Puishak
39. Spinach Palong shak
40. Kangkong Gimakalmi shak
41. Sweet potato Mistikumra
42. Jute leaf Patshak
43. Rajatpata Rajatpata
44. Betel leaf Pan
45. Stem Amaranth leaf Danta Shak
46. Leaves of Aroid Kachur pata
47. Stem of Aroid Kachur Doga
48. Naga hot chilli Naga Marich
49. Onion leaf Piaj pata
50. Matured Wax gourd Chuna Jali Kumra
51. Stem of Banana Kolar Anaj
52. Hyacinth bean seed Seemeer Bichi
53. Bottle gourd leaf Lau shak
54. Cabbage Badha Kopi
55. Coriander leaf Dhaney Pata

39
 Annex-F
(Continued)
Sl.No. English name Local name
Exportable Fruits:
56. Jackfruit Kathal
57. Jackfruit seed Kathaler Bichi
58. Ada Lebu Ada Lebu
59. Mango Aam
60. Green Tender Mango Kacha Aam
61. Jara Lebu Jara Lebu
62. Green Betel Nut Kacha Supari
63. Satkora Satkora
64. Hog Plum Amra
65. Pummelo Batabi Lebu
66. Lemon Elachi Lebu
67. Guava Peara
68. Jamon Kalojam
69. Wax apple Zamrul
70. Wood apple Bel
71. Toikor Toikor
72. Elephant Foot Apple Kodthbel
73. Lotkon Lotka
74. Litchi Litchu
75. Sapota Sapodita
76. Carambola/Star fruit Kamranga
77. Baby Pineapple Anarosh
78. Jujubi/Ber Kull/Boroi
79. Indian Olive Jalpai
80. Tamarind Tetul
81. Water Chestnut Pani Fall
82. Karonda Karamcha
83. Elephant Apple Chalta
84. Custard Apple Sharifa
85. Kauphal Kauphal
86. Dayphal Dayphal
87. Bullock’s Heart Ata phal
88. Others

40
 ANNEX-G

FRUITS REQUIRING PHYTOSANITARY CERTIFICATES FOR ENTRY INTO THE UK

Botanical Name Common Name Origin Requirement

Annona Custard apple Non-European countries Phytosanitary certificate
Non-EC European countries None
Citrus and hybrids Orange, lemon, All non-EC countries Phytosanitary certificate
lime, etc.
Cydonia Quince Non-European countries Phytosanitary certificate
Non-EC European countries None
Diospyros Persimmon, Non-European countries Phytosanitary certificate
date plum Non-EC European countries None
Portunella and Kumquat All non-EC countries Phytosanitary certificate
hybrids
Malus Apple Non-European countries Phytosanitary certificate
Non-EC European countries None
Mangifera Mango Non-European countries Phytosanitary certificate
Non-EC European countries None
Passiflora Passion fruit Non-European countries Phytosanitary certificate
Non-EC European countries None
Poncirus and hybrids Ornamental All non-EC countries Phytosanitary certificate
citrus
Prunus Includes cherry, Non-European countries Phytosanitary certificate
plum, peach, Non-EC European countries None
apricot
Psidium Guava Non-European countries Phytosanitary certificate
Non-EC European countries None
Pyrus Pear Non-European countries Phytosanitary certificate
Non-EC European countries None
Ribes Gooseberry, Non-European countries Phytosanitary certificate
blackcurrant, Non-EC European countries None
redcurrant
Syzygium Jambolan and Non-European countries Phytosanitary certificate
rose apple Non-EC European countries Non
Vaccinium Cranberry, Non-European countries Phytosanitary certificate
blueberry Non-EC European countries None
All other fruit All non-EC countries None
Note: Fruit must be free from leaves and peduncles
Source: Defra, UK

41
 CUT FLOWERS, FOLIAGES AND VEGETABLES REQUIRING PHYTOSANITARY
CERTIFICATES FOR ENTRY INTO THE UK

(ANNEX-G Continued)
Botanical Name Common Name Origin Requirement
Coniferae (note tighter Conifers All non-EC countries Phytosanitary Certificate
restrictions on certain
genera; see below)
Orchidaceae Orchids Thailand Phytosanitary Certificate
Other non-EC countries None
All non-EC countries Phytosanitary Certificate
Abies Fir Non-European countries Prohibited
Non-EC European Phytosanitary Certificate
countries
Acer macrophyllum Big leaf maple, Oregon USA Phytosanitary Certificate
maple
Acer saccharum Sugar hard or rock maple North America Phytosanitary Certificate
Aesculus californica California buckeye USA Phytosanitary Certificate
Apium graveolens Celery, celeriac All non-EC countries Phytosanitary Certificate
Arbutus menziesii Madrone USA Phytosanitary Certificate
Arctostaphylos spp Bearberry, Mazanita USA Phytosanitary Certificate
Aster Aster Non-European countries Phytosanitary Certificate
Castanea (with leaves) Sweet chestnut Non-European countries Prohibited
Non-EC European Phytosanitary Certificate
countries
Castanea (without leaves) Sweet chestnut All non-EC countries Phytosanitary Certificate
Cedrus Cedar Non-European countries Prohibited
Non-EC European Phytosanitary Certificate
countries
Chamaecyparis False cypress Non-European countries Prohibited
Non-EC European Phytosanitary Certificate
countries
Citrus and hybrids Orange, lemon, lime etc. All non-EC countries Prohibited
Dendranthema Chrysanthemum All non-EC countries Phytosanitary Certificate
Dianthus Pink, carnation All non-EC countries Phytosanitary Certificate
Eryngium Sea holly, Eryngo All non-EC countries Phytosanitary Certificate
Fortunella and hybrids Kumquat All non-EC countries Prohibited
Gypsophila Gypsophila All non-EC countries Phytosanitary Certificate
Heteromeles arbutifolia Toyon USA Phytosanitary Certificate
Hypericum St John’s wort Non-EC countries Phytosanitary Certificate
Juniperus Juniper Non-European countries Prohibited
Non-EC European Phytosanitary Certificate
countries
Larix Larch Non-European countries Prohibited
Non-EC European Phytosanitary Certificate
countries
Lisianthus Lisianthus Non-European countries Phytosanitary Certificate
Lithocarpus densiflorus Tanbark oak USA Phytosanitary Certificate
Lonicera hispidula Honeysuckle USA Phytosanitary Certificate
Momordica Balsam apple, bitter apple, All non-EC countries Phytosanitary Certificate
balsam pear, bitter gourd,
bitter cucumber etc.
Ocimum Sweet basil etc All non-EC countries Phytosanitary Certificate
Pelargonium Geranium, pelargonium All non-EC countries Phytosanitary Certificate

42
 (ANNEX-G Continued)
Botanical Name Common Name Origin Requirement
Phoenix Date Palm Algeria and Morocco ProhibitedPhytosanitary
Other non-EC European Certificate
countries
Picea Spruce Non-European countries Prohibited
Non-EC European Phytosanitary Certificate
countries
Pinus Pine Non-European countries Prohibited
Non-EC European Phytosanitary Certificate
countries
Poncirus and hybrids Ornamental citrus All non-EC countries Prohibited
Populus (with leaves) Poplar and aspen North America Prohibited
Other non-EC countries Phytosanitary certificate
Populus (without leaves) Poplar and aspen All non-EC countries Phytosanitary certificate
Prunus Includes cherry, plum, Non-European countries Phytosanitary Certificate
peach, apricot and
flowering almond
Pseudotsuga Douglas fir Non-European countries Prohibited
Non-EC European Phytosanitary Certificate
countries
Quercus (with leaves) Oak Non-European countries Prohibited
Non-EC European Phytosanitary Certificate
countries
Quercus (without leaves) Oak All non-EC countries Phytosanitary Certificate
Rhamnus californica Coffeeberry USA Phytosanitary Certificate
Rhododendron spp. (other Rhododendron USA Phytosanitary Certificate
than Phododendron simsii)
Rosa Rose Non-European countries Phytosanitary Certificate
Solanum melongena Aubergine, Egg plan All non-EC countries Phytosanitary Certificate
Solidago Aaron’s rod, Golden rod All non-EC countries Phytosanitary Certificate
Trachelium Non-European countries Phytosanitary Certificate
Tsuga Hemlock Non-European countries Prohibited
Non-EC European Phytosanitary Certificate
countries
Umbellularia californica California laurel, USA Phytosanitary Certificate
Headache tree
Vaccinium ovatum Box blueberry USA Phytosanitary Certificate
Viburnum spp. Viburnum USA Phytosanitary Certificate
Vitis Grape vine All non-EC countries Phytosanitary Certificate
All other cut flowers, All non-EC countries None
foliage and vegetables
Note: Effective from April 01, 2003.
Source: Defra, UK

43
 ANNEX-H

HORTICULTURAL PRODUCES REQUIRING CONFORMITY CEERTIFICATES

Fruit Vegetables Salad Crops Nuts in Shell

Apples Artichokes Celery Hazelnuts in shell
Apricots Asparagus Cucumbers Walnuts in shell
Avocado Pears Aubergines Iceberg lettuce
Cherries Beans Lettuce and endives
Clementines Brussels Sprouts Mushrooms (cultivated)
Grapes Cabbage Sweet Peppers
Kiwi Fruit Carrots Tomatoes
Lemons Cauliflower Witloof Chicory
Mandarins Courgettes
Melons Carlic
Nectarines Leeks
Oranges Onions
Peaches Peas
Pears Spinach
Plums
Satsumas
Strawberries
Water Melons
Source: Defra, UK

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 ANNEX-I

REFERENCES

1. Bangladesh Bureau of Statistics (BBS): Yearbook on Agricultural Statistics of

Bangladesh, 2000-2001.

2. Bangladesh Bureau of Statistics (BBS): Statistical Bulletin of Bangladesh, January

2004.

3. Export Promotion Bureau (EPB):Bangladesh Export Statistics, 1992-93 through

2002-2003.

4. Hortex Foundation: Production Increase and Market Expansion for Vegetables, Fruits
and Flowers for Export, January 2000.

5. Bangladesh Tariff Commission (BTC): Seminar papers on Sanitary and Phytosanitary

Measures, May 2002.

6. Ministry of Agriculture: Agribusiness Development Project Bangladesh, Interim

Report, July 2004.

7. Md. Shafiqur Rahman, Director (Standards), Bangladesh Standards & Testing

Institution (BSTI): Current Situation of Standardization to the Quality Control,
Certification through Testing Concerning Agrobased Products in Bangladesh.

8. Department of Environment, Government of Bangladesh: Working paper for

Inception Workshop on Bangladesh: Preparation of POPs National Implementation
Plan under Stockholm Convention, June 2004.

9. DANIDA: Draft Strategy on Action Plan for the Implementation of National IPM
Policy,Volume-1, Bangladesh, July 2004.

10. defra, UK: The Plant Health Guide for Importers, published in March 2003,
downloaded from its web site: www.defra.gov.uk

11. Saudi Arabia, UAE, Kuwait, Bahrain and Oman: Various Government Decrees and
General Requirements for Import of Fruits and Vegetables, collected through
courtesy of Bangladesh Embassies working in those countries during the study
period, June-July, 2004.

12. Brian J. Smith, Food Technology, UK: Food Safety and Quality Requirements for the
European and North American Markets, a seminar paper presented in Agri-Invest
2003, Bangladesh.

13. M. Asaduzzaman, Bangladesh Institute of Development Studies (BIDS): Food Safety,

Standardization and Implications for Bangladesh Trade, a seminar paper presented in
Agri-Invest 2003, Bangladesh.

14. TFNet, Kuala Lumpur, Malaysia: Report of Second General Assembly on

International Tropical Fruits Network, July 2003.
15. Plant Consult, Emmeloord: EUREPGAP – Introduction among the Small Scale
Producers of Fresh Fruits and Vegetables in Developing Countries, December 2003.

45
16. IMF and World Bank: Market Access for Developing Country Exports – Selected
Issues, September 2002.

17. United Nations, New York and Geneva: A Synthesis Report on Trade Liberalization
and the Environment: Lessons Learned From Bangladesh, Chilly, India, the
Philippines, Romania and Uganda, 1999.

18. OECD Workshop on Emerging Trade Issues in Agriculture: Agri-Environmental

Policies and Trade Issues – Selected Problems, 1998.

19. Ulrich, HIOFFMANN, UNCTAD Secretariat, Geneva: Environmental/Health

Requirements, Market Access and Export Competitiveness – What is the Problem for
Developing Countries and what can be the Answers, presented in National Training
Workshop in Ho Chi Minch City, Viet Nam, March 2004.

20. World Bank Dhaka Office Video Conference: Dialogue Series on SPS Measures
Implementation in South Asian Countries, June 28-August 24, 2004.

46