Fruit market stable despite duty hike

The price of fruits in local markets have remained the same despite the government’s recent decision to raise regulatory duty on the item, along with many others, by 20 per cent to tackle the dwindling foreign exchange reserves.

An increase in supply of local fruits, including litchi, mango and jackfruits, in markets across the country has helped keep the prices stable and demands high. This in turn caused the demand for imported fruits – such as malta, grapes and apples – to go down, stabilising their retail rates.

Moreover, industry insiders say Bangladesh’s fresh fruit imports decline during the May-June period every year, due to the rise in supply of homegrown fruits. For this reason, though the government hiked regulatory duty on fruits this year, the move had no effect on the market.

Importers however added that the fruit prices will go up once the current season is over.

According to the Bangladesh Bureau of Statistics (BBS), the country imported fruits and nuts worth $3,729.16 in May 2021, which indicates a 38.87 per cent drop compared to $6,100.32 recorded in April that same year.

On May 23, the National Board of Revenue (NBR) issued a statutory regulatory order, raising the regulatory duty on the import of 130 products under fruits, flowers, furniture and cosmetics categories by 20 per cent, as part of an effort to prevent a further decline in forex reserves.

On a spot visit to different markets across Dhaka, the correspondent found that the supply of local fruits has gone up compared to ten days ago. The supply and prices of imported fruits also remained normal.

Traders in the capital’s fruit markets, including in Segunbagicha, Maniknagar, Malibagh, and Gopibagh, are selling imported malta for Tk 150 – Tk 170 per kg, Fuji and green apple for Tk 200 – Tk 210 per kg, Red apple (gala) for Tk 210 – Tk 220 per kg.

Meanwhile, imported pomegranate is being sold for Tk 350 – Tk 360 per kg, pear at Tk 250 – Tk 260 per kg, grapes (white) for Tk 240 – Tk 260 per kg.

Hannan, a fruit trader in Segunbagicha, said, “There has been no recent change in prices of fruits in the city markets for the last 10-15 days. The demand for imported fruits has declined due to an increase in the supply of local fruits.”

In the city’s fruit markets, homegrown litchi is being sold for Tk250 – Tk 350 per 100 pieces, different varieties of mango for Tk 70 – Tk 120 per kg, watermelon for Tk 200 – Tk 250 per piece, and jackfruits for 150 – 200 each.

Confirming that the fruits prices in the local market have remained the same since the last 10 days, Bangladesh Fresh Fruits Importers Association General Secretary Sirajul Islam said, “The season of local fruits is ongoing, while the government has increased the regulatory duty.

“Under the circumstances, the traders have almost halted fruit imports since last month.”