Higher import tariffs drive up fruit prices

The surge in dollar prices had already driven up fruit prices in the city's retail markets, and the imposition of high import tariffs in the current budget has now caused their prices to double compared to pre-Ukraine war or pandemic times. 

In Dhaka's retail markets, a kilogram of apples is currently priced between Tk300 and Tk320, which goes up by Tk40-Tk50 at super shops. Apple prices were almost half a year ago. 

Importers said they purchase one kilogram of apples or oranges for only Tk50 but face a duty of Tk90-Tk100 per kilogram. Wholesalers then buy these fruits from importers at Tk170-Tk190, which further increases to Tk300 or more at the retail level. 

Traders attribute the significant price hikes to the government's imposition of heavy duties on these imported products at various times. Essentially, the government is imposing tariffs twice the import cost of fruits, they said. 

Winter typically sees increased demand for tangerines, relying heavily on imports as local production is insufficient. 

Indian tangerines, now priced at Tk250-Tk260 per kg in various markets, sometimes reaching Tk300, were sold at Tk220-Tk230 during Ramadan this year. 

In Dhaka's retail markets, imported Malta is at Tk280-Tk300, red grapes at Tk380-Tk400, pomegranate at Tk650-Tk700, and pears at Tk250-Tk260. 

However, high prices have led to decreased sales, with traders noting the impact on consumer purchasing behaviour. 

Serazul Islam, president of the Bangladesh Fresh Fruits Importers Association (BFFIA), highlighted challenges, citing a dollar crisis affecting LC opening and additional duty, making business sustainability complicated. 

"The imposition of import duties seems arbitrary; we are now required to pay double the duty compared to the purchase price of a kilogram of apple or orange," expressed the trade leader.

New complications in importing dates

The import duty on dates, an essential item during the fasting month of Ramadan, has surged from 10% to 53% in the current budget, leading to a significant increase in the minimum tariff values. 

For instance, the minimum tariff value for a carton (5kg) of dates from Iraq, Dubai, Algeria, and Tunisia has risen from $1,000 to $2,000 per tonne, while dates from Egypt and Saudi Arabia now face a minimum tariff value hike from $1,000 to $4,000 per tonne. 

This adjustment has raised the cost of quality dates from Tk300-Tk500 to Tk500-Tk700. Importers now pay approximately Tk130 per kg in import tax on dates, compared to Tk10.50 previously. 

With an annual demand for 50,000-60,000 tonnes of dates, of which 70% is consumed during Ramadan, concerns arise about potential strain on consumers and discouragement for traders. 

Md Serazul Islam told TBS, "If the price is high, it is natural that consumers will reduce consumption. No trader wants to live in uncertainty if the imported goods are caught in complications." 

He mentioned that his office had sent a letter to the Ministry of Commerce, National Board of Revenue (NBR), and FBCCI highlighting these issues. 

In view of this, the Ministry of Commerce wrote to the NBR on 31 October. However, there is no progress in the implementation of this directive from NBR, according to sources.