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In the proposed budget, Finance Minister AHM Mustafa Kamal
has spoken about the development of almond processing industry and creation of
new export sector. He also said in the budget speech to reduce the tariff for
this. But after the announcement of the budget, the entrepreneurs of this sector
say that the proposed tariff rate will not develop this sector. On the
contrary, the factories have to be shut down for most of the year if they do
not get domestic raw materials.
According to the proposed tariff rate, import duty on raw
cashew nuts with husks will be around Tk 14 per kg. Now you need four and a
half kg of raw almonds to make one kg of cashew nuts suitable for peeling and
eating in the factory. The per capita consumption of cashew nuts is Tk 63. And
if you want to import cashew nuts suitable for direct consumption, you have to pay
duty-tax of around Tk 30 per kg. As such, to import one kg of edible almonds by
importing raw almonds, an additional duty of Tk 33.
The new tariff has been in effect since the day the budget
was announced (June 9, 2022). Tariffs have been restructured at a time when new
entrepreneurs are investing in the sector. Many have come forward in this
sector like Citigroup, BSRM Group, JMI Group's affiliate Mazzak Agro Business.
There are also old entrepreneurs.
Almonds have been processed locally in the hilly areas for a
long time. However, the factory in this sector was started by Shakil Ahmed,
Managing Director of GreenGrain Cashew Processing Industry. "Raw almonds
have not been imported due to inequality in the old tariff rates," he
said. We hoped that budget inequality would be prevented. The Minister of
Agriculture has also made many efforts to prevent inequality. We are
disappointed with the proposed new tariff rate. The factory can not be started.
New entrepreneurs will also lag behind. Because, to bring one kg of almonds by
bringing raw material will now cost Tk 770-850 per person. And imported almonds
are now being sold in the Dhaka market for Tk 700-770. '
The tariffs on raw almonds and ready-made almonds were
earlier the same. Only VAT-registered companies would get a 20 percent
exemption from customs duty. Due to this inequality, raw almonds are not being
imported much. The production of raw almonds in the country is much less than
the demand. Small entrepreneurs could not buy almonds this time due to low
yield. So many factories are not being started. So the entrepreneurs were
hoping that the proposed budget would prevent inequality. In the end, their
hopes were dashed.
Importers have been evading prices since the start of import
of ready-made almonds. The Vietnam Cashew Association, a Vietnamese almond
exporters' association, said in a statement this month that they exported
almonds to Bangladesh at an average price of USD 6.65. But after reaching Bangladesh,
the importers are giving the information of import at the rate of USD 1.85 per
kg. The customs authorities are charging at this rate.
|Source: Online/SZK
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