Open LCs to boost fruit imports: commerce minister

Commerce Minister Khandakar Abdul Muktadir today urged importers to open letters of credit (LCs) quickly to increase supplies of imported fruits and dates and keep prices under control.

At a meeting with traders and representatives of relevant government agencies at the Secretariat in Dhaka, Muktadir asked traders how the retail price of sweet oranges -- locally known as malta -- reached Tk 520 per kg even after accounting for the import price, duties and taxes, and other costs.

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Traders attributed the price rise primarily to a severe supply shortage, as only 12 to 29 containers of malta arrived in some weeks against an estimated daily requirement of around 15 containers, according to a press release.

Importers added that high duties, transport costs, shipping and port complications, and losses on earlier consignments had led many to cut malta imports.

After hearing the traders, Muktadir directed the Directorate of National Consumer Rights Protection to take action if evidence of malta being sold at abnormal prices is found, saying unjustified price hikes would not be allowed.

He assured traders that the government would review the duty on malta and urged importers to source more from alternative markets and open LCs quickly to increase supplies within the next few weeks.

Turning to the issue of dates, Muktadir said the government would announce its decision on duties and taxes on dates this week.

Date importers said longer shipping times, caused by international transport and port complications, made a quick decision on duties necessary to ensure timely imports of adequate supplies of dates.

A National Board of Revenue (NBR) representative said the actual purchase prices of dates of different qualities and grades vary, but the differences are not always properly reflected in customs valuations.

The Bangladesh Trade and Tariff Commission will meet importers in the coming days to work towards a reasonable indicative price for dates after verifying international source prices for different grades, before sending a proposal to the NBR.