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Israel reviews grape duties as retail prices exceed import costs 153%

The Agriculture Ministry is assessing measures to address pricing gaps between import and retail levels for grapes. An annual review found that 2024 retail prices for imported grapes were about 153 per cent higher than import prices.

An additional audit in December 2025 and January 2026 showed that the cost of imported grapes, including customs duties, was about NIS 14 per kilogram, equivalent to US$4.7, while the average consumer price was about NIS 32 per kilogram, or US$10.7. The ministry's director general, Oren Lavi, said the gap reflected a "severe market failure."

Officials are reviewing options to reduce these differences, including requiring retail chains to disclose profit margins and considering a return to price controls. These measures would require approval from the Finance Ministry.

The ministry is also reviewing import duties and their timing. Current tariffs stand at NIS 0.95 per kilogram, or US$0.32, during the winter months when local grapes are not available, increasing to NIS 1.68 per kilogram, or US$0.56, in April and May.

Since the start of the year, about 15,600 tons of grapes have been imported from South Africa and about 1,290 tons from Peru. These countries supply during their production season as Israel transitions into spring.

In previous years, local grapes entered the market in April, with higher duties applied to limit imports during the start of the domestic season. However, growers producing earlier varieties in regions such as the Arava desert have reported that imports are affecting sales.

The ministry is therefore examining whether higher duties should be applied earlier in the year and whether tariff levels should be adjusted.

In a statement, Lavi said: "I will not allow a situation where the Israeli farmer is harmed by market flooding during critical overlapping periods between imports and the start of the local season, while the consumer fails to benefit from lower prices. The ministry is working to update the Customs Tariff Decree to align with shifting harvest dates and the needs of the local market, based on the belief that protecting Israeli growers and reducing mediation gaps are fundamental pillars in ensuring food security and the national resilience of the State of Israel."

Source: The Times Of Israel

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