Could Thai durian export duty mean higher prices, higher quality in China?
A Thai government proposal to charge export duties on durians, a major cash crop, could raise prices for the fruit in China – its primary market – along with the quality, analysts said. Thailand’s draft bill to establish a fund for research and “sustainable” development of the durian sector would include the collection of fees, the government’s public relations department said last month.…
A proposal by the Thai government to charge export duties on durians, a key cash crop, could lead to higher prices and better quality durians in China, its main market, according to analysts. The draft bill aims to establish a fund for research and sustainable development within the durian sector, including fees for collection. Estimates suggest the export duty could be as much as 2 baht (5 US cents) per kilogram, which could be passed on to Chinese consumers.
China is the largest consumer of durians, purchasing over 90% of the global supply, according to HSBC analysts. Lim Chin Khee, an adviser to the Durian Academy, believes that the additional cost may be absorbed by some exporters but will eventually be passed on to buyers and consumers in China. If Thailand uses the levy revenue to improve durian quality, consumers should notice the difference.
The proposal aims to address the need for better quality control, traceability, research, pest surveillance, and brand protection in the Thai durian industry. If the duty is implemented without achieving these goals, it may simply become another cost imposed on an already successful export sector. Thailand exported $5 billion worth of durians to China in the first eight months of the year, surpassing the total volume from the previous year.
Chinese consumers have a preference for Thai durians due to the country's strong logistics and quality control. In contrast, Vietnamese durian exporters faced challenges after Chinese inspections found harmful substances in their shipments. While some Thai durian exporters oppose the proposed duty as a financial burden, Thailand has not set a date for its implementation.
The debate centers around who should bear the cost, with some suggesting that Thai exporters would pay the levy while passing the expense to farmers through lower farm prices.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
