Vegetable exporters hit hard by Gulf airspace closure

Bangladeshi exporters of vegetables and other perishable goods face mounting losses as airspace closures across the Middle East, triggered by escalating US-Israeli war on Iran, have severed vital trade routes since late February.

Shipments to the UAE’s Dubai, Abu Dhabi, Sharjah, as well as Qatar, Kuwait, and Bahrain -- six of Bangladesh’s most important export destinations -- have been completely suspended since February 28.

The disruption comes at a particularly vulnerable time for an industry already struggling to recover from last year’s downturn.

After vegetable exports plummeted 28 percent in the fiscal year 2024-25 (FY25) to $82 million from $112.5 million in FY24. Exporters had begun to see signs of recovery in recent months. Between July and February of FY26, exports climbed 26 percent year-on-year. In February, exports dropped 38 percent compared to the same period last year.

Unlike manufactured goods, vegetables cannot sit in warehouses awaiting safer shipping routes. Mohammed Monsur, general secretary of the Bangladesh Fruits, Vegetables and Allied Products Exporters Association, estimates that exporters previously sent 40 tonnes of produce daily to the six affected destinations alone, worth roughly $150,000.

The crisis has rippled through the supply chain. Foyez Ahmed, who runs Tahura International, used to ship 13 tonnes of vegetables and fruits daily to Kuwait, Doha, Dubai, and Muscat. Now his Middle Eastern buyers have stopped sending orders entirely.

Ahmed initially responded to the development by offloading perishable inventory at discounted prices in Dhaka’s Karwan Bazar.

His second move was to stop ordering from farmers. Usually, he ships goods from the Dhaka airport upon work orders received from his buyers based in Middle Eastern countries. Orders from the affected destinations have stopped amid the conflict.

“When we stopped receiving work orders from our Middle Eastern buyers, we also stopped placing orders with growers,” Ahmed explained. The farmers who depend on export contracts now face an abrupt loss of income.

He said he will resume placing work orders to the growers if the shipments start again.

Some routes are still available. The exporter is now sending goods on a limited scale to Riyadh and Jeddah as the two airports in Saudi Arabia are still open and in operation until now.

Md Tajul Islam, whose Al Adib International specialises in betel leaves, also continues shipping six tonnes weekly to the two cities in Saudi Arabia -- his primary market.

Exporters can also send vegetables and fruits to some destinations in the region, including Medina and Oman, as the airspace of these destinations remains open, though on a limited scale.

But these destinations alone cannot absorb the lost capacity. On normal days, more than 100 tonnes of vegetables and fruits leave Dhaka’s Hazrat Shahjalal International Airport. Today, much less moves.

Logistical issues compound the problem. Indian exporters can ship perishable goods by sea from Mumbai to Middle Eastern ports in just three days, fast enough to maintain quality. But Bangladeshi goods would need to travel from Chattogram port around the Arabian peninsula, a journey too long for vegetables and fruits to survive unscathed.

Bangladesh’s perishable items export model depends almost entirely on air freight.

As of early March, more than 1,200 tonnes of cargo sat stranded at Dhaka’s airport, according to Kabir Ahmed, former president of the Bangladesh Freight Forwarders Association.

“Freighters are yet to resume the cargo flights fully from Dhaka. So, the exporters are facing difficulties with their goods, especially the vegetable exporters. Few operators are running flights on a limited scale,” he said.

Some exporters have begun routing goods through China, Malaysia, and Hong Kong to reach European and American markets, but these detours add cost and time.

According to Monsur, Biman Bangladesh Airlines is carrying goods from Dhaka to Rome, Canada and the United Kingdom.

But the airline has raised its cargo rates to Europe and the US by 50 cents per kilogramme effective March 5, he said.

Emirates, a crucial carrier for Bangladeshi exports, in a statement said it has suspended all scheduled flights to and from Dubai through March 4, operating only limited repatriation and freight services.

Other airlines have reduced frequencies or avoided the region entirely.