Thailand’s proposed durian levy could raise China prices
AgenciesA 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, a...
Thailand is considering imposing a levy on durian exports to China, which could raise prices for the fruit in the country's primary market. The proposed fund would use fees collected from durian exports for research and sustainable development. Analysts estimate the export duty could be as high as 2 baht (5 US cents) per kilogram.
China consumed over 90% of the world's durians, according to HSBC analysts. Lim Chin Khee, an adviser to the Durian Academy, believes that the extra cost may be passed on to Chinese supermarkets, affecting prices. Thitinan Pongsudhirak, a professor of international relations, stated that the levy aims to address quality control, traceability, research, and pest surveillance, but if it fails to achieve these goals, it could be another cost imposed on a successful export sector.
Thailand shipped US$5 billion worth of durians to China in the first eight months of the current year, surpassing the volume for all of last year. Vietnamese durian exporters faced backlash when Chinese inspections discovered harmful substances in their shipments. While Thailand's Durian Association and the Thai Fruit Traders and Exporters Association oppose the proposed duty, Thailand has not set a date to implement it.
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