Consumers are being compelled to remove fruits from their shopping lists due to an unusual price hike in these nutritious items across local markets.
The demand for imported fruits typically remains high from September to January, as the supply of locally grown produce dwindles during this period.
Businesses have claimed that the price surge is a result of their inability to import the items, owing to stricter regulations imposed by the ousted Awami League government, which aimed to curb the depletion of foreign currency reserves.
When Bangladesh’s foreign currency reserves began to decline two years ago, authorities took steps to limit imports, with fruits among the first items affected by the restrictions. In 2021-22, the country spent approximately $450 million on fruit imports, prompting the government to take action.
Higher duties, restrictions
In an effort to reduce import expenses and address the growing dollar shortage, government agencies tightened regulations on fruit imports, particularly targeting oranges, apples, and grapes.
For instance, the National Board of Revenue (NBR) increased the regulatory duty from 3 per cent to 23 per cent, while the Bangladesh Bank introduced requirements that importers must pay the full cost upfront for importing fruits and other non-essential goods.
Consumers cutting fruit purchases
Due to the rise in prices, consumers have been compelled to either reduce their fruit consumption or remove fruits entirely from their daily diets.
Mozammel Haque, a 32-year-old resident of the Mohammadpur area in the capital, told The Business Post, “The price of imported fruits has increased significantly this year. As a result, I have had to cut my fruit purchases by 30 to 40 per cent.”
He urged government agencies to investigate whether traders are engaging in profiteering, as the prices of some fruits have risen at an unusually high rate.
Fruit prices skyrocket
During visits to various markets in the capital, this correspondent observed that apples were being sold for Tk 260 to Tk 375 per kg, oranges for Tk 280 to Tk 350 per kg, grapes for Tk 390 to Tk 560 per kg, pomegranates for Tk 500 to Tk 600 per kg, and dates for Tk 450 to Tk 1,800 per kg, depending on quality.
However, officials from the National Board of Revenue (NBR) stated that after the imposition of new duty taxes on imported fruits, the prices in local markets should be around Tk 156 per kg for apples, Tk 151 per kg for oranges, Tk 188 per kg for grapes, and Tk 290 per kg for dates.
Syndication alleged, imports down
NBR officials alleged that the sharp rise in fruit prices is primarily due to market syndication, making it increasingly difficult for people to afford fruits alongside other daily essentials.
They also noted that fruit imports have dropped by 28,000 tonnes over the past year, with a significant decline in the import of apples, oranges, and dates in the outgoing financial year.
According to data from the National Board of Revenue (NBR), Bangladesh imported 1,69,675 tonnes of apples in the fiscal year 2023-24, down from 1,82,818 tonnes the previous year. Similarly, orange imports fell to 1,73,470 tonnes, compared to 2,20,560 tonnes the year before. Date imports also declined, with 77,611 tonnes imported, down from 83,701 tonnes in the previous fiscal year 2022-23.
Bangladesh imports various fresh fruits, including apples, oranges, mandarins, grapes, and pears, mainly from countries such as China, Australia, South Africa, Brazil, Argentina, New Zealand, Afghanistan and France.
Importer Zinnat Ali, owner of JM Trading, told The Business Post, "I used to import fruits worth Tk 2 crore per month by making a 20 per cent deposit against the opening of letters of credit (LC). However, the imposition of a 100 per cent cash margin has made it impossible for small importers like me to continue importing."
