In response to a decline in foreign currency reserves, Bangladesh implemented measures to limit imports, significantly affecting the fruit sector. The country, which had spent approximately $450 million on fruit imports in the fiscal year 2021-22, saw the government and regulatory bodies enforce stricter import regulations.
The National Board of Revenue increased the regulatory duty on fruits such as oranges, apples, and grapes from 3 percent to 23 percent. Additionally, the Bangladesh Bank mandated that importers must fully prepay for fruit and other non-essential goods. These actions led to a decrease in the opening and settlement of letters of credit (LCs) for fruit imports over the following years.
Despite ongoing dollar shortages, the import of nutritious items began to recover, with LCs valued at $247.26 million opened from July to January in the fiscal year 2023-24, marking a 25.81 percent increase year-on-year, according to central bank data. This uptick is attributed to banks' more liberal stance on facilitating imports due to improved US dollar availability and traders' willingness to meet upfront payment requirements.
The resurgence in import activities coincides with the month of Ramadan, which significantly boosts demand for fruits, as they are traditionally consumed to break the fast.
Source: thedailystar.net
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