A section of traders are engaged in exporting processed foods, buying those straight from the domestic market, ignoring the fact that shipped items may not fully comply with the standards set by importing countries.
Analysts and industry operators warned about the risks of such exports, saying the practice puts Bangladesh’s image at risk.
“It also raises the risk of a ban on the entry of Bangladeshi items if exported products do not comply with the requirements of the importing country,” said Humayun Kabir, director general of South Asian Regional Standards Organisation (Sarso).
The parameters of food standards vary from country to country and the standards of Bangladesh Standards and Testing Institution may not be acceptable to the importing country, he said.
So, one should export goods in line with the standards of the importing country, he added.
Food processors also raised the same concerns; they face problems when their food items that were made for the local markets and not meant for export are shipped by traders abroad, overlooking the packaging and quality requirements of the importing country.
“We have to suffer for such shipments by a section of traders,” said Khurshid Ahmad Farhad, head of export at Square Food and Beverage Ltd, a concern of Square Group.
The US Food and Drug Administration (FDA) issued an alert mid last year after a hazardous bacteria was found in Square’s chilli powder, he said.
Square did not ship the product; a trader exported the item buying it from the local market, he said.
Square exports to the US by treating spices at a lab to make sure it meets standards of the country, Farhad said.
To market locally, the company does not treat the chilli powder separately on grounds that the bacteria cannot survive in very high temperatures, the way that food is usually cooked here, he said.
Farhad said Square continued efforts so that FDA withdraws the alert about the chilli powder.
“It costs us time and money,” he said. If the FDA finds noncompliance in any product of a company, it detains all the products of that firm for lab tests before release, he added.
The importer has to bear the costs of the tests and wait for several weeks for the result, while the whole process makes business less feasible, he added.
“We give high importance to our brand value. But exports by some traders affect not only our brand but also the country’s image.”
Square is not alone. Other manufacturers, such as Pran and Bombay Sweets have also faced problems related to the shipment of food items that were meant for the local market.
Md Mizanur Rahman, chief of exports at Pran, said, “A couple of years ago, a trader exported some of our food items to a European country. However, authorities later found that these items did not match their requirements and we had to explain to the Bangladesh government that we did not export those items.”
To prevent the export of products meant for the domestic market, Pran follows a strategy of not selling large quantities of its products to anyone in Bangladesh, he added.
DD Ghosal, head of marketing at Bombay Sweets, said nearly one crore Bangladeshis living in the Middle East, Europe, North America and Southeast Asia love to consume processed foods and spices from Bangladesh.
“And a section of traders take advantage of this demand abroad. They buy from the local wholesale markets and export. But they are not fully aware of the risks of such shipment.”
“We now mention the market that the item is made for, on the packets itself. For here, we clearly mention that the product is for use in Bangladesh,” he said.
Farhad of Square said they are not against shipment by traders. “But we request them to get our authorisation before exporting any of our products. It will protect the image of the local manufacturer and Bangladesh as well.”
Kabir of Sarso stressed the need to educate exporters regarding regulations and requirements of the importing countries.
He also suggested Export Promotion Bureau give clearance about exports to make sure that all standards of the destination countries are met.
