Why Oranges Imported at Tk 87 Are Selling for Tk 520 a Kilogram

 

A large share of the oranges currently available in Bangladesh’s markets are being imported from South Africa and Egypt. From these two countries, oranges are being imported at a maximum price of around 70 cents per kilogram, equivalent to approximately Tk 87 in Bangladeshi currency.

Yet the same oranges are now selling for Tk 480 to Tk 520 per kilogram in Chattogram’s retail markets. In other words, a fruit that costs around Tk 87 to import is reaching consumers at more than five times its import price.

To determine where the additional costs are being added, Prothom Alo analysed data from different stages between importation and retail sales. The analysis shows that a significant portion of the price increase occurs at the import stage itself, as oranges face a combined tax and duty burden of 121.78%.

Transportation and other associated costs are added on top of this. However, limited supply in recent weeks, combined with increased demand amid a rise in dengue cases, has also driven prices sharply higher at both wholesale and retail levels.

Taxes and duties add around Tk 107 to an orange imported for Tk 87

According to Bangladesh Customs, fresh oranges and similar citrus fruits face a total tax burden of 121.78%. This includes import duty, regulatory duty, supplementary duty, value-added tax and advance income tax.

Data from Chattogram Customs House shows that the current average import price of oranges is around Tk 87 per kilogram. Taxes and duties add approximately Tk 107 per kilogram.

As a result, the cost rises to around Tk 193–194 per kilogram by the time the oranges are cleared from the port.

Oranges are transported in refrigerated containers. Importers say another Tk 10–15 per kilogram is added for transportation from the port to warehouses, containers and other associated expenses. This brings the direct cost to around Tk 204–209 per kilogram.

Importers, however, say this does not represent the full cost of dealing with a perishable product. Taking into account spoiled fruit, container charges, port-related expenses and other costs, they estimate their actual cost can reach Tk 230–240 per kilogram.

Orange imports have nearly halved

According to National Board of Revenue (NBR) data, orange imports have steadily declined since taxes and duties were increased.

In the 2021–22 financial year, Bangladesh imported 294,000 tonnes of oranges. After taxes and duties were increased, imports fell to 220,000 tonnes in 2022–23.

Imports declined further to 173,000 tonnes in 2023–24, followed by 168,000 tonnes in 2024–25 and 153,000 tonnes in 2025–26.

This means imports have almost halved over a period of four years.

The downward trend has continued into the current financial year. Only 21,000 tonnes were imported during the first three months or so of the year.

Passing through several hands before reaching Tk 520

After being cleared from the port, oranges are sent to wholesale markets in Chattogram and Dhaka. The fruit passes from importers to wholesalers and then to retailers, with prices changing at each stage according to market demand and supply.

Traders at Chattogram’s Fruit Market said oranges were selling wholesale for Tk 220–230 per kilogram around three weeks ago. Prices then began rising rapidly.

At one point, a 15kg carton was selling for Tk 6,000 to Tk 7,500, meaning wholesale prices had climbed to around Tk 400–500 per kilogram.

Last Wednesday, oranges were found selling for Tk 480–520 per kilogram at various retail markets in Chattogram.

Mohammad Babul, a fruit trader at Railway Men’s Super Market, told Prothom Alo that many importers had incurred losses between June and August. As a result, imports declined in the following period.

With supply falling below demand in September, prices rose rapidly. Babul said prices have now started to come down as new shipments arrive, and they could fall further if supplies increase next week.

Mohammad Qutub Uddin, proprietor of orange importer HR Corporation, said the costs of taxes and duties, port charges and container transportation had all increased.

However, he claimed that retailers in many cases are charging as much as Tk 100 more per kilogram than wholesale or importer-level prices.