Imported fruit prices surge by up to Tk 100 per kg

Imported fruit prices surge ahead of Ramadan.

Dhaka, Feb 21 – The prices of imported fruits have surged by Tk30 to Tk100 per kilogram following the imposition of higher supplementary duties on all types of imported fruits since 9 January 2025.

According to the Bangladesh Fresh Fruits Importers Association (BFFIA), traders have significantly reduced the number of letters of credit (LCs) issued for fruit imports due to the increased customs duties.

Nuruddin Ahmed, Secretary of BFFIA, told UNB that both wholesale and retail prices of imported fruits have risen sharply due to the higher duties imposed by the National Board of Revenue (NBR).

Consumer Demand Declining

Importers fear that the steep price hike will lead to reduced consumer demand for imported fruits. Ahmed stated that if the government lowers import duties, the issuance of LCs will increase accordingly.

“The number of LCs opened for fruit imports has dropped by 30 per cent since the tax hike on 9 January, leading to a reduced supply of fresh fruits in wholesale markets,” he said.

Ahmed further mentioned that BFFIA has held multiple discussions with the Bangladesh Trade and Tariff Commission (BTTC), urging the withdrawal of regulatory duties on fruit imports ahead of Ramadan.

The association has also called for a reduction in VAT and Advance Income Tax (AIT) to more reasonable levels, considering fruits as perishable agricultural goods.

Following these appeals, the BTTC has recommended to the NBR a reduction in import duties on fruits, he added.

“If the NBR cuts import duties, fruit prices will decrease ahead of Ramadan, as a large number of trucks and shipping consignments are awaiting clearance,” said Ahmed.

BTTC’s Efforts to Stabilise Prices

Dr Moinul Khan, Chairman of BTTC, stated that the commission is working to ensure that essential consumer goods, including edible oil and fruits, remain affordable for the general public. “We have already recommended that the NBR reduce VAT and import duties on fresh fruits to keep them within reach of consumers during Ramadan,” he said.

Market Prices Reflect Steep Hike

A UNB correspondent visited several markets in the capital on Wednesday and observed that oranges were selling at Tk330 to Tk380 per kg, depending on quality, while malta was priced at Tk300 per kg. Green apples were being sold at Tk470 per kg, Chinese Fuji apples at Tk350 to Tk380 per kg, pomegranates (dalim) at Tk450 to Tk630 per kg, white pears (naspati) at Tk330 to Tk360 per kg, green pears at Tk430 to Tk500 per kg, and red and black grapes at Tk550 to Tk600 per kg.

The surge in imported fruit prices has also driven up the cost of locally produced fruits. Thai papaya was selling at Tk150 per kg, guava at Tk90 to Tk100 per kg, bananas at Tk80 to Tk120 per dozen, and green coconuts at Tk100 to Tk160 per piece.

Declining Imports and Rising Duties

According to NBR data, between October and January of the current fiscal year (FY2024-25), Bangladesh imported 102.4 million kg of grapes, apples, oranges, and pears.

Bangladeshi traders import 38 varieties of fruit from 22 countries worldwide, with apples, malta, oranges, grapes and pineapples accounting for 95 per cent of total imports. The remaining 5 per cent consists of pears, kinnow, kadabel, avocados, rambutans and kiwis.

The customs duty on imported fruits such as apples, oranges, grapes, pears, and pineapples has steadily increased over recent years. In FY2021-22, the total customs duty was 89.32 per cent, rising to 113.80 per cent in FY2022-23.

This year, the first phase of duty increases brought the rate to 118.80 per cent, while a second phase raised it to 136.20 per cent. This means that for every Tk100 worth of imported fruit, customs duties must now be paid.

Import statistics from Chittagong Port show that 589 million kg of fruit was imported in FY2023-24, a sharp decline from the 822 million kg imported in FY2021-22. This equates to a decrease of 233 million kg, or 28.24 per cent, in just one year.

Wholesale Traders Report Plummeting Sales

Wholesale traders in Chattogram have reported that fruit supplies have dwindled due to unloading delays. As a result, consumer demand has dropped significantly due to higher VAT and additional duties.

Rafiq Sarder, a wholesale trader at Badamtola market, told UNB that traders who previously sold fruit worth Tk5 lakh per day in the wholesale market are now struggling to reach even Tk1 lakh in sales.

“This indicates a drastic drop in wholesale sales,” he remarked.  -UNB