Express News Service
AHMEDABAD: Bangladesh’s decision to raise import duties on Gujarat’s renowned Kutchi ‘Dates’ has dealt a severe blow to date palm farmers in the region. The import tax on Khaarek (Dates) from Rs 10 per kilogram has surged seven times to Rs 80 per kg. This significant increase has led to a halt in exports to Bangladesh, leaving Kutch farmers facing a surplus of unsold stock.
Kutchi Khaarek is among the distinctive food products that Gujarat’s Kutch region exports to various countries worldwide. However, this year has been particularly challenging for Kutch farmers.
On one hand, they had to endure the adverse impacts of the BiparJoy storm, and on the other hand, continuous rains have severely hampered Khaarek production. Now, with the steep rise in import duties by Bangladesh, the situation has become even more daunting for the farmers.
The heightened import duty on Kharek from Rs 10.83 to Rs 80 has led to increased prices, making it unaffordable for people in Bangladesh, thereby causing a cessation of exports. Jamal Shaikh, a Kutchi Khaarek exporter, highlighted the sudden escalation in taxes by the Bangladesh government. In 2021, the tax was 10.83 paise, which rose to Rs 33 in 2022 and eventually reached 64.50 rupees in the new budget of 2023, only to be raised to Rs 80 shortly after.
This drastic change has had a significant impact on the economics of the trade. For instance, the tax payment on a full truck of Khaarek increased from Rs 3.5 lakh in 2022 to Rs 6.5 lakh in 2023, and further to 8.5 lakh rupees after the subsequent week. Consequently, Bangladeshi importers are reluctant to conduct business under such circumstances.
AHMEDABAD: Bangladesh’s decision to raise import duties on Gujarat’s renowned Kutchi ‘Dates’ has dealt a severe blow to date palm farmers in the region. The import tax on Khaarek (Dates) from Rs 10 per kilogram has surged seven times to Rs 80 per kg. This significant increase has led to a halt in exports to Bangladesh, leaving Kutch farmers facing a surplus of unsold stock.
Kutchi Khaarek is among the distinctive food products that Gujarat’s Kutch region exports to various countries worldwide. However, this year has been particularly challenging for Kutch farmers.
On one hand, they had to endure the adverse impacts of the BiparJoy storm, and on the other hand, continuous rains have severely hampered Khaarek production. Now, with the steep rise in import duties by Bangladesh, the situation has become even more daunting for the farmers.googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });
The heightened import duty on Kharek from Rs 10.83 to Rs 80 has led to increased prices, making it unaffordable for people in Bangladesh, thereby causing a cessation of exports. Jamal Shaikh, a Kutchi Khaarek exporter, highlighted the sudden escalation in taxes by the Bangladesh government. In 2021, the tax was 10.83 paise, which rose to Rs 33 in 2022 and eventually reached 64.50 rupees in the new budget of 2023, only to be raised to Rs 80 shortly after.
This drastic change has had a significant impact on the economics of the trade. For instance, the tax payment on a full truck of Khaarek increased from Rs 3.5 lakh in 2022 to Rs 6.5 lakh in 2023, and further to 8.5 lakh rupees after the subsequent week. Consequently, Bangladeshi importers are reluctant to conduct business under such circumstances.