Agri Biz
Fresh fruit imports fall 50pc in four months on tightened rules
Imports of fresh fruits dropped 50pc in the four months till August with the government tightening rules regarding the procurement of such non-essential items to ease pressure on depleting forex reserves.
The National Board of Revenue raised the regulatory duty on imports of various fresh fruits to 20pc from the earlier 3pc, while the Bangladesh Bank slapped a 100pc cash margin requirement for opening letters of credit for imports of such products.
As of April this year, fruit imports through Chattogram port were around 70,000 tonnes on average. In the wake of such restrictions, imports came down to 35,000 tonnes in the span of a month. The falling trend continued in the next two months and slumped to 21,571 tonnes in July, according to Chattogram customs.
In August, fruit imports marked a 55pc month-on-month rise to 33,454 tonnes, but the quantity still remained way lower than that in April.
Businesses say the overall import duty on fresh fruits has now increased to 113pc from a little over 89pc because of the 20pc regulatory duty imposed by the government in May this year.
Besides, they now have to make a full deposit before opening LCs for fresh fruit imports. Earlier, the margin ranged between 10pc and 20pc, they note.
That is why small and medium entrepreneurs have now stopped fruit imports as they are unable to maintain such a high cash margin.
Bangladesh imports various fresh fruits, such as apples, oranges, mandarin, grapes and pears mainly from China, Australia, South Africa, Brazil, Argentina, New Zealand, Afghanistan and France.
Importer Zinnat Ali, an owner of JM Trading, told, “I would import fruits worth Tk2 crore per month by making a 20pc deposit against LC opening. But the 100pc cash margin has made it impossible for small importers like me to continue with the imports.”
A drastic fall in fruit imports has affected retail sales. Billal Hossain, a retail fruit trader in Chattogram city’s Baluchara market, said prices of imported fruits have increased between Tk100 and Tk150 per kg in the last few months. At the consumer level, fruit sales have fallen by more than half.
In the span of five months, apple prices have shot up to Tk250 per kg from Tk180, malta to Tk220 per kg from Tk160 per kg, orange to Tk250 per kg from Tk200, grapes to Tk500 per kg from Tk300, he noted.
Jonaidul Haque, a fruit importer, said, “We used to import fruits worth Tk30 crore on average every month. We are now facing financial losses as our imports have dropped drastically in recent months.”
Touhidul Alam, general secretary of Falmondi fruit market traders’ association in Chattogram, said in normal times, Tk27 crore worth of fruits were sold in Chattogram per day, but sales have now halved.
Adviser to the Ministries of Finance and Commerce, Dr. Salehuddin Ahmed, emphasized today that the prices of commodities are closely linked to production and supply, and assured that the government is fully aware of the necessary steps to control these prices.
“We are very conscious of issues related to trade and commerce. My colleague, Dr. Wahiduddin Mahmud, who oversees the Ministry of Planning, is also focused on these matters. We are accustomed to handling such challenges,” Dr. Salehuddin remarked in response to reporters’ questions at the Ministry of Finance in Bangladesh Secretariat.
Earlier in the day, Dr. Salehuddin met with Edimon Ginting, the Country Director of the Asian Development Bank (ADB), at his office in the Economic Relations Division (ERD).
He noted that the government is also attentive to the impacts of imported inflation, stressing that only essential goods should be imported. “We must ensure that the additional burden on the general population is minimized and work to further reduce existing pressures,” he added.
Dr. Salehuddin also mentioned that the central bank governor is well-informed about the causes of rising inflation, which is why strict market monitoring is in place.
Addressing another question, he mentioned that the Bangladesh Bank Governor is actively managing the issue of increasing foreign currency reserves, and this topic will be raised in the upcoming annual meetings of the World Bank and the IMF.
When asked about the outcomes of his meeting with the ADB, Dr. Salehuddin expressed that development partners, particularly the World Bank and ADB, remain positive about continuing their operations in Bangladesh. He noted that the ADB and other partners have assured him of their ongoing cooperation in the development sector.
He further highlighted that the development partners are eager to advance pipeline projects in alignment with the government’s priorities.
Regarding the possibility of delaying Bangladesh’s graduation from Least Developed Country (LDC) status beyond 2026, Dr. Salehuddin acknowledged the complexity of the issue, noting that it involves various conditions and the involvement of multiple agencies, including the Ministry of Finance, Ministry of Commerce, and the National Board of Revenue (NBR). He assured that the government is closely monitoring the developments.
When asked about the demands from government employees for ration provisions, Dr. Salehuddin stated that both public and private sector employees are equally important, emphasizing the government’s priority to ensure that everyone can lead a decent life. “We are committed to ensuring that everyone benefits equally,” he said.
On his new responsibilities with the Ministry of Commerce, Dr. Salehuddin underscored the importance of local and international trade as key pillars of the economy. He assured that the government would strive to create a business-friendly and corruption-free environment in all business operations.
Recognizing the significant role of trade, commerce, and the supply chain in curbing inflation, Dr. Salehuddin promised prompt government action to address these issues.
He also mentioned plans to meet with the Ministry of Commerce and its subordinate bodies to tackle pressing matters. “You can be assured that I will do my utmost and take necessary steps swiftly,” he concluded.
The prices of daily essentials will come down gradually, Finance and Planning Adviser Dr Salehuddin Ahmed said today (14 August).
“Common people will get relief to some extent. But it can’t be said that the prices will decrease overnight,” he told reporters at the conference room of the Finance Ministry.
Responding to a question about syndicate in the market, he said, “There is nothing that has not come to our notice, I have some ideas, the governor also knows about it.
“The secretaries here are also very experienced and I told them that you will tell me everything without fear.”
Asked if any step will be taken regarding corruption, he said, “There was no discussion on the issue today.”
Responding to another question he said, “Action against corruption is an ongoing process, some processes need to be followed to punish someone. Some measures and action have already been taken.”
Responding to a question about the specific instructions given today, the finance adviser said the Industries and Agriculture ministries will do whatever needs to be done in the field of production, such as fertiliser supply and market management.
Cyclone Remal has inflicted severe damage on crops across 45,590 hectares of land in the Khulna agricultural zone, causing losses worth Tk 180.24 crore, as reported by the Directorate of Agricultural Extension (DAE) in Khulna.
According to Mohon Kumar Ghosh, Additional Director of the DAE Khulna Zone, 44,148.95 hectares of farmland suffered partial damage, while 1,450.90 hectares were completely destroyed in the four affected districts: Khulna, Bagerhat, Satkhira, and Narail.
In Khulna district, Cyclone Remal affected 3,565.65 hectares of cropland belonging to 13,796 farmers, resulting in losses estimated at Tk 42.98 crore. Bagerhat district witnessed damage to 12,611.50 hectares of cropland from 39,465 farmers, with losses amounting to Tk 97.36 crore. In Satkhira, 659.7 hectares of cropland owned by 12,156 farmers were affected, incurring losses of Tk 24.42 crore. Narail saw damage to 28,763 hectares of cropland from 8,620 farmers, with estimated losses of Tk 15.47 crore.
Speaking to BSS, Mohon Kumar Ghosh highlighted the extensive damage caused by Cyclone Remal to the southern coastal areas, particularly croplands. The affected crops include jute, Aush seedbed, aush cultivated land, groundnut, chili, bona Aman, ginger, turmeric, summer melon, litchi, mango, papaya, betel nut, sugarcane, banana, winter maize, sesame, and various Kharif season vegetables such as tomato, mung bean, and banana.
Following directives from Prime Minister Sheikh Hasina, efforts are being made to support the affected farmers. “We are working tirelessly to help the helpless farmers recover their losses,” Ghosh said, adding that the government is providing incentives and regular counseling and supervision at the field level to aid recovery.
In the coming months, the affected farmers will continue to receive various forms of government support to mitigate the impact of Cyclone Remal.
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