Bangladesh Fruit Import Duties Reached Nearly Tk 6,000 Crore in FY26
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Bangladesh collected nearly Tk 6,000 crore in import duties on fresh fruits in fiscal year 2025-26, doubling customs revenue over five years even as private shipments fell 29 per cent.
Importers brought in 5.7 lakh tonnes of produce such as apples, oranges, grapes, and mandarins during FY26, down from 8 lakh tonnes in FY21, according to an assessment by the Bangladesh Trade and Tariff Commission.
Tax rates explain the divergence. Total import taxes on fresh fruit climbed from 89.32 per cent in FY21 to 121.78 per cent in the current fiscal year 2026-27. Customs duties, regulatory levies, and supplementary taxes pushed retail prices beyond the reach of low-income shoppers. In Dhaka, apples that sold between Tk 250 and Tk 340 a kilogram two years ago now fetch between Tk 300 and Tk 400. Several years ago, shoppers paid less than Tk 300 per kilogram.
Currency Slump and Cash Margins Hit Grocers
Currency depreciation compounded the tax shock. The Bangladeshi taka weakened 43 per cent against the greenback, sliding from an average of Tk 84.80 per US dollar in FY21 to Tk 121.50 in FY26. Importers had to absorb that exchange rate hit alongside a 100 per cent cash margin requirement on letters of credit introduced during the 2023 foreign exchange crunch. Bangladesh Bank recently withdrew that cash margin rule as foreign exchange reserves stabilized, yet retail prices have not retreated.
Food retailers in urban markets added their own buffers. The commission found that retail grocers widened their percentage markups faster than wholesale distributors, passing all foreign exchange risk directly to consumer baskets. Higher prices have crimped dietary options during peak dengue treatment periods, when hospital demand for vitamin C-rich citrus spikes.
A Tax on Crops Farmers Do Not Grow
Horticultural protection does not justify the import levy. Bangladesh maintains zero commercial domestic production of apples, oranges, mandarins, grapes, pears, or pomegranates. Every piece of these fruits consumed in the country arrives through ports.
“Total import taxes on fresh fruit climbed from 89.32 per cent in FY21 to 121.78 per cent in the current fiscal year 2026-27.”
By treating baseline table fruits as luxury merchandise, tax policy creates severe consumer distortions without shielding a single local orchard. The tariff commission confirmed that Bangladesh now imposes the highest fresh fruit import duties in South Asia, while Nepal levies the lowest.
The Tariff Rollback Model
The commission formally recommended that the commerce ministry drop both supplementary duties and regulatory duties on non-native fruit imports. Lowering the overall tax incidence back to 89 per cent would reverse volume declines without sacrificing public coffers, according to agency projections. The commission estimated the National Board of Revenue could harvest more than Tk 6,500 crore if import volumes rebounded to 8.20 lakh tonnes under lower tariff rates.
Consumers Association of Bangladesh President AHM Shafiquzzaman backed the reduction, arguing that public health demands affordable produce.
“Across the world, prices of the fruits appear to be the highest in Bangladesh. But as fruit is part of public health, people should have options to decide whether they would consume locally produced fruits or imported ones. The authority should consider collecting other options to collect revenue,” he added.
What Lies Ahead for Importers
The earlier step that started this squeeze was the National Board of Revenue’s tariff hike in fiscal year 2021-22, designed to brake foreign exchange outflows. That emergency barrier outlived its immediate purpose, leaving fruit importers with stranded balance sheets and suppressed order books.
The commerce ministry now faces a formal decision on whether to accept the commission’s tariff cut proposal and submit a revised rate sheet to the National Board of Revenue ahead of the mid-year budget adjustments.
Questions & Answers
Q.Why have import duties on fresh fruit risen so sharply in Bangladesh?
Why have import duties on fresh fruit risen so sharply in Bangladesh?
The National Board of Revenue raised tariffs in fiscal year 2021-22 as an emergency measure to brake foreign exchange outflows. Total import taxes on fresh fruit subsequently escalated from 89.32 per cent in FY21 to 121.78 per cent in FY27, creating the highest fruit duties in South Asia.
Q.Do these high tariffs protect local fruit farmers from foreign competition?
Do these high tariffs protect local fruit farmers from foreign competition?
The duties offer no domestic protection because Bangladesh maintains zero commercial cultivation of apples, oranges, mandarins, grapes, pears, or pomegranates. Every piece consumed is imported, so the taxes simply penalise consumers by treating baseline fruits as luxury merchandise without shielding any local growers.
Q.How could lowering import tariffs boost total customs revenue?
How could lowering import tariffs boost total customs revenue?
Lowering total taxes back to 89 per cent is projected to lift customs collections past Tk 6,500 crore by reviving depressed consumer demand. The tariff commission estimates this tax cut would prompt import volumes to rebound from 5.7 lakh tonnes to 8.20 lakh tonnes.
Q.Why have retail prices remained elevated after the central bank eased credit conditions?
Why have retail prices remained elevated after the central bank eased credit conditions?
Although Bangladesh Bank withdrew the 100 per cent cash margin requirement on letters of credit, urban grocers widened their markups faster than wholesalers. Retailers built in substantial commercial buffers, passing the full blow of the taka's 43 per cent depreciation directly to household grocery bills.
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