- Trade decreased as Bangladesh increased imports of oranges
- Farmers of Maharashtra used to export six thousand tons of oranges to Bangladesh every day
- As the prices of oranges in Bangladesh fell, local traders stopped buying Indian oranges
Maharashtra’s orange farmers used to send 6,000 tonnes of the fruit daily to Bangladesh till last year, but the trade has declined after Dhaka raised the import duty on oranges from Rs 20 per kg in 2019 to Rs 88 per kg in November 2023. Besides, the price of oranges in Bangladesh is so high. Nor is it a profitable deal for local traders to buy oranges from India anymore. So the farmers of Maharashtra are about to suffer huge losses.
Farmers suffered
Farmers in Vidarbha believe that Bangladesh has increased the import duty in retaliation after Bangladesh banned the export of onion, a local food staple, to protect the local market. Late last month, the government eased the export ban on onion, which was imposed in December last year, allowing its export to Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka. It is not clear whether the government will reduce the import tax on oranges, especially as onion exports to Bangladesh begin. If that happens, farmers in Maharashtra, the country’s largest producer of oranges, will get some relief for the next crop in December.
Orange consumption in Bangladesh
The report cites farmers as saying that Bangladeshis crave Nagpur oranges after every meal because their juicy fiber has the right pH value to soothe the stomach after a meat-heavy meal, which is common in that country. In a tit-for-tat trade fight, oranges aren’t the only ones that get hurt.
The government also accepted
Commerce Minister Piyush Goyal admitted in the Lok Sabha in December that India’s orange exports have been affected by Bangladesh’s increase in import duty rates. Goyal said India had requested Bangladesh to reconsider the policy in the interest of orange farmers in India, but was told that it was applicable to imports from all countries without any discrimination.
