Import of dates, a non-negotiable iftar item, surged nearly threefold compared to that recorded ahead of Ramadan last year due to duty reductions provided by the government.

This has resulted in ample supply and a price drop of anywhere from Tk 40 to Tk 300 per kilogramme (kg), particularly in the port city of Chattogram.

Date prices have remained relatively stable this year compared to previous years, thanks to the government's duty waiver and a decline in international market prices, according to market insiders.

Additionally, a rise in the number of importers has prevented a handful of traders from monopolising the market, they said.

There were only 58 importers last year, but this year more than 158 importers joined the market, as per National Board of Revenue (NBR) data.

Around 80 percent of Bangladesh's annual date imports are made in the three months leading up to Ramadan.

Over the past three months of the current fiscal year, importers brought in 46,123 tonnes of dates, worth Tk 833 crore. Around 17,826 tonnes were imported in the same period a year ago.

A majority of the fruit is imported from Saudi Arabia and the United Arab Emirates while a small portion is imported from 10 other countries, including Egypt, Jordan, Iraq, Iran and Afghanistan.

"In recent years, around 40 to 50 importers controlled the date market," said Abdul Wadud, proprietor of Chattogram-based importer Walid Enterprise.

"However, this year, the duty waiver has encouraged more traders to enter the business, leading to higher imports," he said.

He noted that in previous years, the tariff-assessed value of dates was higher than the actual import price, while duty rates were also steep, for which many traders used to opt for importing small quantities.

"Banks did not provide any margin facility for opening letters of credit (LCs) in previous years due to a US dollar crisis," he said.

"But this year, importers were able to open LCs with a 30 percent to 40 percent margin. The LC margin also boosted imports and kept rates within a reasonable range," Wadud added.

Most varieties of dates are being sold at prices lower than those last year at wholesale and retail markets in Chattogram due to the increase in supply.

Mabroom dates, a premium variety of Saudi Arabia with a long slender body of dark maroon or brown colour, are available at Tk 1,000 to Tk 1,200 per kg, said Abul Bashar, a wholesale trader at the Khatunganj market.

Last year, they were going for Tk 1,300 to Tk 1,400, he said.

Similarly, Ajwa dates, which are oval-shaped and medium-sized with black skin, are selling for Tk 650 to Tk 850 per kg while Medjool dates from Egypt are fetching Tk 900 to Tk 970 per kg.

Other varieties are available at Tk 250 to Tk 750 per kg, depending on the quality.

However, according to market prices data compiled by the Trading Corporation of Bangladesh, prices in Dhaka are higher this year.

Regular quality dates were selling at Tk 280 to Tk 550 per kg yesterday, which is nearly 11 percent higher than that a month ago and 18.5 percent higher than that a year ago.

"Compared to last year, date prices are more affordable this time," said Mansur Nabi, a college teacher who lives at Chattogram's Bayezid area.

"However, the prices of other essential Ramadan commodities, such as edible oil, flour, and sugar, remain relatively high," he said.

Revenue receipts from date imports rise despite duty cut

Despite tax exemptions, the government has collected Tk 321 crore in revenue from date imports this year, compared to Tk 212 crore during the same period last year.

That means the increase in imports generated an additional revenue of Tk 109 crore.

At the beginning of this year, the customs duty was reduced from 25 percent to 15 percent while the customs valuation was also lowered anywhere from 8 percent to 25 percent, depending on the quality of the dates.

As a result, import costs dropped by 20 percent to 25 percent, according to industry insiders.

For taxation purposes, the NBR has set five valuation tiers for imported dates.

Those of the lowest grade are taxed at $0.75 per kg, while premium-quality ones at $3.75 per kg -- a slight reduction from last year's range of $1 to $4 per kg.

However, last year, the NBR calculated customs duties based on an exchange rate of Tk 110 per US dollar, whereas this year it is Tk 120 per US dollar -- meaning the greenback has turned 9 percent costlier.

Business owners argue that this has partially offset the tax reductions, preventing a proportional decrease in overall duty costs.

On February 2, Walid Enterprise paid Tk 170 in customs duty on each kg for a 25-tonne shipment of Ajwa dates.

Last year, a shipment of the same variety required Tk 208 per kg in duty -- indicating a cost reduction of Tk 38 per kg due to the tax adjustments.