Indian green chilli import starts, prices expected to drop soon

Trucks with 104 tonnes of green chilli arrived in Bangladesh from India through Bhomra and Benapole land ports on Sunday, which is expected to increase the supply and reduce prices soon.

According to the Ministry of Agriculture, permission was given to import 36,830 tonnes. 

"Green chilli imports have started after Eid-ul-Azha holidays," said Maqsood Alam Khan, general secretary of the Bhomra C&F Agents Association.

He said that these green chillies will be supplied to the kitchen markets of Satkhira and Dhaka. However, he did not want to talk about the price of the imported chillies.

Similarly, five trucks imported 34 tonnes of green chilli through Benapole port till 5:00pm on Sunday.

According to the information of the Plant Quarantine Wing of the Ministry of Agriculture and the Department of Agriculture Extension, 36,830 tonnes of green chillies have been allowed to be imported through 104 import permits till Sunday. During this period, 93.036 tonnes were imported.

Muhammad Liakat Hossain Khan, deputy director (import) of the Plant Quarantine Wing, told The Business Standard (TBS), "The market will soon come under control once the import through the land ports is back at full swing after the holidays."

People concerned said import of this kitchen item would increase from Monday.

Meanwhile, the supply of local green chilli is also increasing. Farmers are bringing the item to market to capitalise on the high price. 

The price of green chilli in Mahasthangarh market in Bogra has come down from Tk500 to Tk250 within a day due mainly to increased supply.

The impact of increased supply is also evident in Dhaka markets. Here the item is selling at Tk340-360 at wholesale markets of Dhaka with the price reduced by Tk 40-80. However, the price is still much higher at retail level.

The price of green chillies suddenly started to increase across the country before Eid. Increasing from Tk140-150, prices soared to Tk600 per kg in Dhaka and to Tk700-800 outside Dhaka.

To curb the steep price hike, the agriculture ministry allowed chilli import on June 25. However, as the land ports were closed during the Eid holidays, import was also stalled, which led to volatility in the market.

Bhomra Customs Deputy Commissioner Niamul Hasan told TBS that $500 custom duty is paid for each tonne of imported green chillies.

Importers from Satkhira stated that each tonne is being imported from India at the rate of over Rs150. Assuming the exchange rate of Rs109 per dollar, customs duty stands at Rs54.5 per kg.

According to the annual report of the Department of Agriculture Extension for 2021-22 fiscal year, the production of green chillies stood at 2.98 lakh tonnes against a target of 3.23 lakh tonnes. Production is expected to decrease this year as well. 

Both high temperatures at the start of summer this year and prolonged monsoon that started earlier this year may have a significant impact on chilli production.