Red Tape, Legal Tangle Threaten Country’s Betel Leaf Export Market

Bangladesh’s betel leaf export trade is being strangled by bureaucratic red tape, legal disputes and a lack of policy support, with export earnings plunging by 34.21 per cent in a single year and the country’s most important overseas market, Saudi Arabia, now facing growing uncertainty.

According to data from the Export Promotion Bureau (EPB), Bangladesh earned US$32.51 million from betel leaf exports in fiscal year 2023-24. The earnings fell sharply to US$21.44 million in FY2024-25, representing a decline of US$11.07 million in just one year.

The alarming fall has exposed the fragility of an export trade that depends overwhelmingly on a single market. Saudi Arabia accounted for US$19.187 million, or nearly 89.5 per cent, of Bangladesh’s total betel leaf export earnings in FY2024-25.

Industry insiders fear that any disruption in the Saudi market could therefore deliver a severe blow to the entire sector, affecting not only exporters but also thousands of farmers, traders and workers whose livelihoods depend on the trade.

The sector is now facing a mounting pile-up of administrative complications, certification hurdles, legal disputes and allegations of attempts to control the export market. Exporters say the uncertainty is making it increasingly difficult to ship a highly perishable agricultural product on time and threatening Bangladesh’s reputation among overseas buyers.

The crisis has already attracted concern from Saudi importers. The Saudi Agricultural Importers Association, in a written complaint submitted to the Bangladesh Consulate in Jeddah on May 30, alleged that imports of betel leaves from Bangladesh were being disrupted by administrative complications and demands for additional payments.

In a letter to the Ministry of Commerce on June 4, Syeda Nahida Habib, Commercial Counsellor at the Bangladesh Consulate in Jeddah, said nearly 90 per cent of Bangladesh’s betel leaf exports depend on the Saudi market.

Maintaining uninterrupted access to the market is therefore linked to Bangladesh’s national economic interests and requires immediate measures to resolve the problems, she noted.

The government had sought to ease the situation by scrapping its old 2003 directive and issuing a new circular on April 8 to simplify the export process. Bangladesh Bank subsequently instructed authorised dealer banks to process export-related documents under the revised procedure.

But the reform soon became entangled in a legal battle. A writ petition was filed with the High Court challenging the circular, following which the court stayed its implementation. The stay has created fresh uncertainty over the procedures exporters must follow, further complicating an already troubled trade.

The EPB had itself raised concerns about the situation. In an official letter dated February 22, 2026, the export regulator referred to complaints submitted by 17 betel leaf exporting companies. The exporters alleged that activities of the exporters’ association were creating complications in the export process and that there was an attempt to control the market.

The EPB’s review also found that the existing system was increasing the time and cost of exports and creating difficulties for businesses.

Exporters have alleged that, following the court’s stay order, several influential individuals within the association have sought to tighten their grip on the market. The allegations include demands for additional payments, delays in shipments and attempts to discourage new exporters from entering the business.

No formal response from the concerned association could be obtained regarding the allegations.

Exporters said the problem is particularly serious because betel leaf is highly perishable. Unlike conventional manufactured goods, it cannot simply wait in warehouses while paperwork is completed. Even a delay of one or two days can put an entire shipment at risk of spoilage, resulting in heavy losses for exporters and lower returns for farmers.

“If the export process is not simplified, ordinary businesses will not be able to remain competitive. This will increase the control of a few people while farmers and small exporters will suffer,” a betel leaf exporter told the Daily Observer.

Another exporter said delays in obtaining certificates and other documents were preventing shipments from leaving on time.

“Betel leaf is perishable, so even a delay of one or two days can cause significant losses,” he said.

Exporters warned that the issue extends far beyond the business interests of a handful of companies. The trade supports thousands of farmers and workers and contributes valuable foreign exchange to the economy.

 A prolonged disruption could also encourage Saudi and other Middle Eastern buyers to turn to competing suppliers, making it difficult for Bangladeshi exporters to regain lost market share.

They urged the government to intervene immediately to remove administrative bottlenecks, resolve policy uncertainty and ensure that certification and export procedures are transparent, predictable and free from undue influence.

Anwar Hossain, proprietor of Dolphin International, told the Daily Observer that the allegations should be investigated impartially and policy-related complications resolved quickly in accordance with the directives of the court.

“At the same time, if the certification process is made digital and transparent and opportunities for monopolistic control by any individual or organisation are eliminated, Bangladesh’s betel leaf exports could recover,” he said.