Import duties causing excess profits in fruit

In the first quarter of fiscal year 2024-25, government food distribution under various social protection schemes fell by 14% year-on-year, primarily due to a significant reduction in grain transfers under the Food for Work (FFW) and Food Friendly Programme (FFP).

The government has reduced the import duty on eggs from 30% to 13% and lowered the duty on edible oil by 5%. It has also eliminated value-added tax (VAT) on edible oil at the production and distribution levels to help stabilize prices of essential commodities. These actions respond to rising prices and follow requests from oil refiners for tax waivers to mitigate increasing global prices for soybean and palm oil. Meanwhile, egg prices have surged amid supply shortages, prompting the government to approve the import of 4.5 crore eggs to alleviate the crisis.

A total of 593 tonnes of green chillies were imported from India through Benapole Land Port over the past two days. Of this, 581.97 tonnes arrived yesterday, and 10.96 tonnes today. Valued at Tk 3.34 crore, the green chillies were imported at Tk 60 per kg, with an import duty of Tk 36,000 per tonne. The imports, made by 28 Bangladeshi importers, aim to ease the rising prices of green chillies in local markets.

A recent price surge in fruits has forced consumers in Bangladesh to reduce their purchases, primarily due to stricter import regulations aimed at protecting dwindling foreign currency reserves. Since 2021, the government has raised regulatory duties and mandated full upfront payments for fruit imports, leading to significant price increases. For example, apples now cost Tk 260 to Tk 375 per kg, while oranges range from Tk 280 to Tk 350 per kg.

Vegetable prices have surged, with most selling at Tk 100 per kilogram or higher, doubling in just one and a half months due to decreased production and crop damage from persistent rain and flooding. Many farmers have struggled to cultivate early winter vegetables, leading to significant price hikes.