To keep fruit prices within people's reach during the holy month of Ramadan, the government reduced the supplementary duty and advance tax on fresh fruit imports. But since the cut, prices of imported fruit have risen rather than fallen, with apples and black grapes up the most.

Visits to various parts of the capital and conversations with traders on Wednesday, 26 March, showed that apple prices have risen by up to Tk 100 a kg. Black grapes are up by more than Tk 100 a kg, and malta and oranges by about Tk 20-30 a kg.

Prices of apples, grapes, oranges, malta and pomegranates have reached a level that low-income people can hardly afford, since no imported fruit can now be bought for under Tk 300 a kg.

On 9 January the interim government raised duty and VAT at various stages on more than a hundred goods and services, including these imported fruits. As a result, prices of various fruits rose even before Ramadan. In response to traders' demands, on 18 March the government cut the supplementary duty on fresh fruit imports from 30 per cent to 25 per cent, fully exempted the 5 per cent advance tax, and reduced the advance income tax on fruit imports from 10 per cent to 5 per cent.

Depending on the market, traders are now selling green apples for Tk 400-450 a kg, up from Tk 300-320 a few days ago. Gala apples are selling for Tk 400-430 a kg, compared with Tk 350-360 a few days ago. Large apples are slightly cheaper at Tk 320-350 a kg.

Grapes are also up sharply. Black grapes that sold for Tk 350-400 a kg a few days ago now sell for Tk 500-550. Green grapes sell for Tk 300-320 a kg, up from Tk 250-280.

Traders are selling malta for Tk 300-320 a kg, up from Tk 270-300. Oranges that sold for Tk 280-300 a kg are now Tk 300-350. Pomegranates sell for Tk 650-700 a kg, a price that has not risen afresh.

Nannu Mia, a trader in Segunbagicha, said all kinds of fruit are now dearer. That day he had to pay Tk 700 more for a carton of apples at the arat; a carton holds about 18 kg. Apple prices have been rising for several days, up Tk 100 a kg in 10-15 days.

He said it is not only apples: all fruit prices have gone up. Judging by the situation at the arats, prices may rise further, as there are rumours that fruit stocks at the arats are low.

Ali Hossain, another Segunbagicha trader, said fruit prices have been high since the start of Ramadan and keep rising day by day, with every kind of fruit up in the past week. People have cut back their buying because of the prices. "I am bringing in fruit little by little, but it is not selling much. Many people hear the price and walk away."

Idris Ali, a fruit trader in Rampura, said he sold green apples for Tk 350 a kg only a few days ago, but prices at the arat have risen so much that he cannot sell below Tk 420. Other apples, oranges, grapes and malta have also gone up. Oranges he sold for Tk 300 a kg a few days ago now sell for Tk 350.

Asked about sales, he said apples, grapes, malta and oranges are selling much less now; a small consignment takes several days to sell. Because of poor sales he is now also selling watermelons and bananas, whereas before he sold nothing but apples, grapes, malta, oranges and pomegranates.

Amena Begum was leaving Rampura market disappointed after hearing fruit prices. "I came to buy oranges, but they are asking a lot, Tk 350 a kg. Other fruit is expensive too. It is not possible to buy fruit at such prices, so I am leaving without buying."

Source: Jagonews24. First published in Bengali on The Agro News.