Imported fruits slip out of consumers’ reach

Imported fruits are becoming increasingly unaffordable for consumers in Bangladesh, with higher prices forcing many to cut back even as their overall spending continues to rise. 

A combination of higher customs duties, a weaker taka against the US dollar and import restrictions during the dollar crisis has pushed up prices and reduced import volumes.

National Board of Revenue (NBR) data show that Bangladesh imported around 589,000 tonnes of foreign fruits in FY2024-25, nearly 10,000 tonnes less than in the previous fiscal year. Yet, based on average retail prices, consumers spent at least Tk20,000 crore on these fruits.

The country imports 38 varieties of fruits, but apples, malta oranges, sweet oranges, grapes and pomegranates account for around 95 per cent of the total. Other varieties include pears, avocados, kiwis, rambutans and quinces.

Fruit imports have fallen sharply from 822,000 tonnes in FY2022-23. Over the following three fiscal years, the volume declined by 233,000 tonnes, or around 28 per cent.

Traders attributed the decline mainly to higher import costs and retail prices, which have weakened demand. Agricultural experts, however, said rising domestic production has also reduced dependence on imported fruits.

Mehedi Masud, director of the Nutrition Development Project under the Department of Agricultural Extension (DAE), said annual fruit production in Bangladesh had increased from around 10 million tonnes a decade ago to 15 million tonnes.

Both cultivated areas and yields have expanded, he said, adding that locally grown fruits such as guavas and jujubes are now available throughout the year, reducing demand for imports to some extent.

Higher taxes push up prices
Import expenditure has increased despite the fall in volume. The overall customs duty and tax burden on imported fruits, which stood at 89.32 per cent two years ago, rose to 113.80 per cent after the NBR imposed a 20 per cent regulatory duty in May 2022.

As a result, importers now pay Tk113.80 in duties and taxes for every Tk100 worth of imported fruits. The depreciation of the taka has further increased import costs and tax liabilities, with the additional expenses ultimately passed on to consumers.

Duties and taxes on each kilogram of imported apples, for example, rose from around Tk39 in FY2022-23 to Tk52 in FY2023-24 and reached Tk88 at the beginning of FY2025-26.

Apples accounted for a major share of consumer spending. Bangladesh imported 169,000 tonnes of apples in FY2024-25, with retail prices averaging Tk300-320 per kg. Consumer spending on imported apples was estimated at least Tk5,746 crore.

The country also imported 173,000 tonnes of malta oranges, which sold at around Tk275-300 per kg. At an average price of Tk300, consumers spent around Tk5,190 crore on the fruit.

Another 110,000 tonnes of grapes were imported during the fiscal year. While the average price was estimated at Tk300 per kg, consumers often paid Tk350-450 at retail outlets.

Fewer source countries
The sources of fruit imports have also become more concentrated. Bangladesh now imports fruits from 22 countries, down from 35 four to five years ago, as importers increasingly favour geographically closer suppliers to reduce shipping costs.

China was the largest source, supplying around 200,000 tonnes, or 34 per cent of total imports, mainly apples, oranges, grapes and pears. India supplied around 192,000 tonnes, nearly 33 per cent, with malta oranges, grapes and pomegranates among the major varieties.

Africa was the third-largest source, supplying 97,662 tonnes, mainly malta oranges, sweet oranges and apples. Other suppliers include Egypt, Thailand and the United States.

The NBR said Bangladesh spent around US$350 million on imported fruits in FY2024-25. At an exchange rate of Tk224 per dollar, the amount stood at approximately Tk7,840 crore, excluding shipping, insurance and other related expenses. The government collected Tk6,139 crore in revenue from fruit imports during the year.

Sirajul, president of the Bangladesh Fresh Fruits Importers Association, said the country had 622 fruit-importing companies and at least 10,000 wholesale trading establishments.

Around two million permanent and temporary outlets, from roadside stalls to retail shops, sell imported fruits, providing employment to a large number of people, he said.

He said higher duties and taxes, coupled with the rising dollar exchange rate, had significantly increased import costs.

“Although higher prices may temporarily increase the value of transactions, the prospects for expanding economic activities around the sector in the future remain limited,” he said.