The imposition of higher supplementary duties on imported fruits in Bangladesh since January 9, 2025, has led to a rise in prices ranging from $0.28 to $0.94 per kilogram. The Bangladesh Fresh Fruits Importers Association (BFFIA) notes a reduction in the issuance of letters of credit (LCs) for fruit imports due to increased customs duties.
Nuruddin Ahmed, Secretary of BFFIA, stated that both wholesale and retail prices of imported fruits have increased sharply due to the higher duties imposed by the National Board of Revenue (NBR). Importers are concerned that the price hike may reduce consumer demand. Ahmed mentioned that if the government reduces import duties, the issuance of LCs could increase.
"The number of LCs opened for fruit imports has dropped by 30 per cent since the tax hike on January 9, leading to a reduced supply of fresh fruits in wholesale markets," Ahmed said. Discussions with the Bangladesh Trade and Tariff Commission (BTTC) have been held, urging the withdrawal of regulatory duties on fruit imports ahead of Ramadan. BFFIA has also called for reduced VAT and Advance Income Tax (AIT) on fruits, considering them perishable agricultural goods. Following these appeals, BTTC recommended to the NBR a reduction in import duties on fruits.
Dr. Moinul Khan, Chairman of BTTC, stated that the commission is working to ensure essential consumer goods remain affordable. "We have already recommended that the NBR reduce VAT and import duties on fresh fruits to keep them within reach of consumers during Ramadan," he said.
Market observations show that oranges are priced at $3.11 to $3.58 per kg, while malta is at $2.83 per kg. Green apples are selling at $4.43 per kg, Chinese Fuji apples at $3.30 to $3.58 per kg, and pomegranates at $4.24 to $5.94 per kg. The price surge has also affected locally produced fruits, with Thai papaya at $1.42 per kg and guava at $0.85 to $0.94 per kg.
According to NBR data, Bangladesh imported 102.4 million kg of grapes, apples, oranges, and pears between October and January of the fiscal year 2024-25. Customs duties on imported fruits have steadily increased, with the current rate at 136.20 per cent. Import statistics from Chittagong Port reveal a decline from 822 million kg in FY2021-22 to 589 million kg in FY2023-24.
Wholesale traders report dwindling fruit supplies and plummeting sales, with a notable decrease in consumer demand due to higher VAT and additional duties. Rafiq Sarder, a wholesale trader, noted a drastic drop in wholesale sales, with daily sales falling from $47,170 to $9,434.
Source: UNB