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Tag: fruit imports

  • Bangladesh Fruit Import Duties Reached Nearly Tk 6,000 Crore in FY26

    Bangladesh Fruit Import Duties Reached Nearly Tk 6,000 Crore in FY26

    Bangladesh collected nearly Tk 6,000 crore in import duties on fresh fruits in fiscal year 2025-26, doubling customs revenue over five years even as private shipments fell 29 per cent.

    Importers brought in 5.7 lakh tonnes of produce such as apples, oranges, grapes, and mandarins during FY26, down from 8 lakh tonnes in FY21, according to an assessment by the Bangladesh Trade and Tariff Commission.

    Tax rates explain the divergence. Total import taxes on fresh fruit climbed from 89.32 per cent in FY21 to 121.78 per cent in the current fiscal year 2026-27. Customs duties, regulatory levies, and supplementary taxes pushed retail prices beyond the reach of low-income shoppers. In Dhaka, apples that sold between Tk 250 and Tk 340 a kilogram two years ago now fetch between Tk 300 and Tk 400. Several years ago, shoppers paid less than Tk 300 per kilogram.

    Currency Slump and Cash Margins Hit Grocers

    Currency depreciation compounded the tax shock. The Bangladeshi taka weakened 43 per cent against the greenback, sliding from an average of Tk 84.80 per US dollar in FY21 to Tk 121.50 in FY26. Importers had to absorb that exchange rate hit alongside a 100 per cent cash margin requirement on letters of credit introduced during the 2023 foreign exchange crunch. Bangladesh Bank recently withdrew that cash margin rule as foreign exchange reserves stabilized, yet retail prices have not retreated.

    Food retailers in urban markets added their own buffers. The commission found that retail grocers widened their percentage markups faster than wholesale distributors, passing all foreign exchange risk directly to consumer baskets. Higher prices have crimped dietary options during peak dengue treatment periods, when hospital demand for vitamin C-rich citrus spikes.

    A Tax on Crops Farmers Do Not Grow

    Horticultural protection does not justify the import levy. Bangladesh maintains zero commercial domestic production of apples, oranges, mandarins, grapes, pears, or pomegranates. Every piece of these fruits consumed in the country arrives through ports.

    By treating baseline table fruits as luxury merchandise, tax policy creates severe consumer distortions without shielding a single local orchard. The tariff commission confirmed that Bangladesh now imposes the highest fresh fruit import duties in South Asia, while Nepal levies the lowest.

    The Tariff Rollback Model

    The commission formally recommended that the commerce ministry drop both supplementary duties and regulatory duties on non-native fruit imports. Lowering the overall tax incidence back to 89 per cent would reverse volume declines without sacrificing public coffers, according to agency projections. The commission estimated the National Board of Revenue could harvest more than Tk 6,500 crore if import volumes rebounded to 8.20 lakh tonnes under lower tariff rates.

    Consumers Association of Bangladesh President AHM Shafiquzzaman backed the reduction, arguing that public health demands affordable produce.

    “Across the world, prices of the fruits appear to be the highest in Bangladesh. But as fruit is part of public health, people should have options to decide whether they would consume locally produced fruits or imported ones. The authority should consider collecting other options to collect revenue,” he added.

    What Lies Ahead for Importers

    The earlier step that started this squeeze was the National Board of Revenue’s tariff hike in fiscal year 2021-22, designed to brake foreign exchange outflows. That emergency barrier outlived its immediate purpose, leaving fruit importers with stranded balance sheets and suppressed order books.

    The commerce ministry now faces a formal decision on whether to accept the commission’s tariff cut proposal and submit a revised rate sheet to the National Board of Revenue ahead of the mid-year budget adjustments.

  • Bangladesh Pushes Fruit Importers to Open Credit Lines as Orange Prices Hit Tk 520

    Bangladesh Pushes Fruit Importers to Open Credit Lines as Orange Prices Hit Tk 520

    Bangladesh Commerce Minister Khandakar Abdul Muktadir pressed fruit traders in Dhaka on Saturday to accelerate letters of credit for imported produce. The push aims to curb surging retail prices.

    Retail prices for imported sweet oranges, known locally as malta, climbed to Tk 520 per kilogram. That surge came despite regular landed costs and existing customs duty schedules. Muktadir met commercial traders and state regulatory bodies at the Secretariat to demand an explanation and outline immediate supply adjustments.

    Supply deficit triggers retail squeeze

    Traders blamed container shortfalls at maritime ports for the price spike. Weekly arrivals dropped to between 12 and 29 containers of sweet oranges. That falls far short of Bangladesh’s normal daily market consumption of roughly 15 containers.

    Importers reported that compounding logistics costs, port turnaround delays, and steep import taxes forced businesses to curb order volumes. Financial losses suffered on earlier shipments also discouraged merchants from booking high-volume consignments for perishable items carrying high spoilage risks.

    Muktadir instructed the Directorate of National Consumer Rights Protection to monitor retail markets and penalise vendors charging unjustified markups. He told traders the government will not tolerate speculative pricing on household fruit.

    Tariff reassessment for dates and fresh produce

    The Ministry of Commerce offered tariff relief to encourage fresh import financing through commercial banks. Muktadir pledged that the government will review the duty structure on sweet oranges. He also promised a formal decision on date duties and taxes within the week.

    Fruit importers raised concerns over shipping windows for dates ahead of seasonal consumption cycles. International transit hurdles require early tax clarity to avoid supply bottlenecks. Customs valuation disputes have also complicated date clearances at border checkpoints.

    A representative from the National Board of Revenue confirmed that actual purchase prices across different grades of dates vary widely. Customs assessments frequently fail to reflect those tiers accurately. The Bangladesh Trade and Tariff Commission plans to meet importers to determine realistic baseline prices verified against international source markets before submitting a revised schedule to revenue authorities.

    Supermarkets face inventory costs

    Grocery chains and retail fruit sellers across Dhaka and regional urban hubs face shrinking sales margins under the import bottleneck. When fruit consignments arrive at irregular intervals, procurement desks compete for scarce spot containers. That drives wholesale terminal auction prices upward before stock reaches store displays.

    Lowering duty barriers without ensuring commercial banks clear foreign exchange allocations for letters of credit will keep wholesale prices elevated. Traders must also identify alternative overseas agricultural suppliers quickly to rebuild port inventory pipeline volumes before winter consumption peaks.

    Regulatory scrutiny on staple food chains

    This pricing clash follows repeated government interventions across Bangladesh’s essential food supply chains over the past year. Authorities have maintained active price ceilings and import duty waivers on core commodities such as edible oil, onions, and sugar to counteract stubborn food inflation.

    Extending formal pricing reviews to imported table fruits reflects broader consumer pressure on non-staple grocery budgets. The commerce ministry is threatening enforcement actions through the consumer rights directorate while dangling duty concessions to push commercial trading houses toward voluntary price moderation.

    Importers agreed to explore alternative overseas sourcing destinations to diversify citrus procurement away from disrupted traditional routes. Next, the Bangladesh Trade and Tariff Commission must set its new valuation schedule for date consignments before revenue collectors implement the revised import framework.