Dhaka’s fresh fruit economy can’t survive on 19th-century logistics

Dhaka's fruit economy moves through the narrow arteries of Badamtoli, where, before dawn each day, trucks laden with imported Apples from China, Oranges from Egypt, Grapes from South Africa, and dozens of other fruits push through streets never designed for heavy cargo vehicles. By sunrise, several hundred crores of taka in fresh fruit have exchanged hands. This hub, the capital's largest fresh-fruit market, still depends on logistics practices resembling a 19th-century model rather than a modern, temperature-controlled supply chain. The bustling commerce scene at Badamtoli masks a fragile ecosystem overwhelmed by congestion, infrastructural neglect, and a near-total absence of cold-chain facilities. Despite the rapid expansion of both fruit imports and domestic production, the operational methods and the physical environment of Badamtoli have barely changed.

The market grew organically in Old Dhaka, characterised by narrow roads and limited public space. While the location once served modest trade volumes, it is incompatible with the demands of today's import volumes from more than 30 countries and the rise in domestic fruit cultivation. Trucks entering Badamtoli must arrive before 8am or face hours of gridlock. The result is higher transportation and rental costs, frequent failure to meet delivery windows, prolonged queuing under severe heat, and congestion spilling into residential and commuter routes. Without proper warehouses, traders often rely on trucks themselves as makeshift storage, selling fruit directly from non-refrigerated covered vans. Soft citrus, grapes, and berries regularly arrive spoiled, and these losses ultimately cascade down to consumers in the form of higher prices.

Recent increases in storage charges at Chittagong Port Authority have worsened pressure on importers, who already operate under tight margins and strict time constraints. They are now compelled to remove consignments more quickly or face steep penalties. Yet once containers are released, the system offers them nowhere appropriate to go—no temperature-controlled warehouses, no reefer-capable distribution yards, almost no refrigerated vehicles, and continued dependence on informal, non-refrigerated trucks. As a result, importers are forced to push perishable goods into the most congested and least prepared market in the country. Post-harvest losses in Bangladesh's fruit and vegetable sector amount to several crores of taka annually, and the lack of cold-chain infrastructure significantly contributes to this waste.

Bangladesh's problem lies not in a shortage of infrastructure but in its chronic underutilisation. A striking example is the Gabtoli central wholesale market for flowers, constructed with Asian Development Bank financing and recently upgraded by the Department of Agricultural Marketing. Despite featuring modern cold rooms, processing equipment, and six refrigerated vans, the facility has remained largely unused since its inauguration in September 2023. Its gates often stay locked, the vans remain parked for months, and the equipment idle. Political turnover, bureaucratic friction, and disputes among trader groups over stall allocations have rendered this almost 50-crore facility dormant at a time when Dhaka badly needs such a place for its fruit market. Fruit traders—despite facing intense space and storage constraints—have not been strategically integrated into Gabtoli's operations, even though its cold-chain capabilities could immediately relieve Badamtoli's chronic overload.

In efforts to understand why traders hesitate to adopt improved logistics practices, I engaged multiple times with Serzaul Islam, president of the Bangladesh Fresh Fruit Importers Association (BFFIA). Although our discussions primarily focused on specific operational issues, particularly reefer container use at Pangaon Inland Container Terminal (ICT) and did not encompass a deeper conversation about systemic needs, they reaffirmed a core truth: at ports, importers face rising cost pressures; outside, they are chronically being underserved by the cold-chain infrastructure.

My own tenure as head of Pangaon ICT underscored both the potential and limitations of the facility. We actively promoted reefer-container handling, highlighted the availability of 48 reefer plugs (expandable to more than 200), held consultations with importers, including BFFIA, and encouraged ship operators to adopt realistic riverine freight rates. Yet, structural challenges persisted. Ship operators maintained high reefer freight rates for movement between Chattogram and Pangaon, and Mainline Operators imposed steep inland haulage premiums. Despite adequate technical readiness and available capacity, reefer movement to Pangaon never materialised. But the potential was strong then and remains strong today.

A new opportunity has emerged with the awarding of a 22-year concession for Pangaon ICT to Medlog SA, a global logistics operator. This transition introduces professional management, investment commitments, and dedicated barge services, creating renewed possibilities for Pangaon's revival. If shipping lines cooperate and shipowners rationalise inland reefer freight structures, Pangaon can finally fulfill its intended role. The benefits are clear: safe and uninterrupted river transport for perishable goods, reduced congestion in Old Dhaka, lower transport costs, reduced spoilage, and the establishment of a modern logistics corridor linking Chattogram to Dhaka. Located just 13-20 kilometres from the commercial core of the capital, Pangaon could profoundly reshape the flow of fresh fruit into Dhaka if properly integrated.

However, the operational paralysis in Dhaka is not solely a logistical issue; it is also a governance issue. Effective reorganisation or relocation of wholesale activities requires coordination between Dhaka South City Corporation (DSCC), which oversees the Badamtoli area, and Dhaka North City Corporation (DNCC), responsible for Gabtoli. Historically, fragmented jurisdiction and the lack of unified direction have prevented progress. Without clear guidance from national leadership, large-scale market reforms rarely advance. Infrastructure alone cannot resolve the bottlenecks; coordinated policy action, economic incentives, and trader participation are essential.

Bangladesh now has an opportunity to modernise its fresh fruit supply chain by connecting Badamtoli, Gabtoli, and Pangaon into a cohesive logistics ecosystem. Gabtoli's cold-chain facilities could be activated and repurposed by allocating space to fruit traders on subsidised terms, deploying refrigerated vans for last-mile distribution, and using cold rooms for short-term storage of high-value fruits. Reefer-container movement to Pangaon could be encouraged through reduced inland haulage premiums, temporary incentives such as barge fee rebates or port charge reductions and guaranteed frequent barge services. A pilot initiative involving a small group of Badamtoli traders could test a Pangaon-to-Gabtoli distribution route, demonstrating reductions in spoilage and cost while building trader confidence. Improved connectivity—leveraging the Padma Bridge, expediting the Kalakandi-Hemayetpur corridor, and integrating Pangaon with peri-urban distribution centres—would strengthen the broader logistics chain.

With growing fruit consumption, rising import volumes, and higher domestic production, Badamtoli cannot continue as Dhaka's de facto national fruit gateway, while Gabtoli remains idle despite substantial public investment. Similarly, Pangaon cannot remain underutilised while congestion paralyses Old Dhaka. The country possesses the essential components; what it needs now is the collective will to assemble them into a modern, efficient, cold-chain-driven logistics system that reflects the needs and scale of a 21st-century fresh-fruit economy.

Ahamedul Karim Chowdhury is adjunct faculty at Bangladesh Maritime University and former head of the Kamalapur Inland Container Depot (ICD) and the Pangaon Inland Container Terminal under Chittagong Port Authority.

Views expressed in this article are the author's own. 

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