The Bangladesh Fresh Fruit Importers Association has issued a warning regarding the recent hike in supplementary duty on fruit imports. If not revoked by Monday, imports will cease from Tuesday, according to Vice President Mohammad Faruk Siddique at a Dhaka press conference.
Siddique highlighted the financial strain caused by the increased duty, leading to losses on shipments. He noted, "While it was possible to sell a truckload of fruits in a day in the past, it is now impossible to sell the same amount even in three to four days." This situation complicates unloading at ports, compounded by shipping and demurrage costs.
The government raised the supplementary duty from 20% to 30% on January 9. Siddique stated that local production meets only 35-40% of domestic demand, necessitating imports for the remaining 60-65%. The increased duty, combined with high bank interest rates, dollar value, and inflation, poses challenges for traders, many of whom rely on bank loans.
Association President Serazul Islam added that current import volumes are halved, with only 20% of the imported fruits being sold. This development underscores the complexities faced by importers in Bangladesh's fruit market.
Source: The Financial Express