Egg import held back by 33pc duty

The government has allowed the import of 200 million eggs to cool off the surging prices, but no eggs have arrived in the country even in two months.
Importers say they are reluctant to bring in eggs due to the high 33 per cent import duty, which they fear would eventually spoil the price competitiveness of the item in the local market.
According to traders, with the import duty, the cost of imported eggs could be higher than that of local eggs. The Bangladesh Poultry Industries Association also says there is no logical ground to import eggs, as importers are likely to incur losses.
Other factors deterring egg imports include lengthy and hectic paperwork and rising egg prices in neighbouring India, according to traders.

The delay in egg import contributes to the local market remaining elevated, as retail egg prices remain at Tk 12.5-13 per piece -- above the government-fixed Tk 12 per piece.
On September 17, the commerce ministry began allowing private sector companies to import eggs. Four private companies -- Mim Enterprise, Tiger Trading, Prime Energy and Arnab Trading -- were granted permission to import 40 million eggs at that time.
Later in the month, six more companies were allowed to import eggs: BDS Corporation, SM Corporation, Ripa Enterprise, Popular Trade Syndicate, Joynur Traders and Cheese Gallery.
On October 8, five companies were allowed to import 50 million eggs: Lucky Enterprise, Union Venture, JFJ Paradise Connection, Pinki Traders and Layek Enterprise.
Lately, on October 23, ten companies were allowed to import eggs, including Siam International, Karim Dairy, Khan Sons Corporation, Mahima Enterprises, Karima Consignment, Neela Trading Co., Ahmed Business & Commerce Pvt Ltd, Atcom International, JBS Food Products & Industries Ltd and Arif Sea Food.
The first 15 companies allowed to import eggs in September and October can each import 10 million eggs, while the remaining 10 companies can import 5 million eggs each.
The condition for imports is that the eggs must be sourced from countries free of bird flu and avian influenza.
Saifur Rahman, the owner of Tiger Trading, said when they obtained permission, the price of eggs was 4.5 to 5.0 rupees (Tk 5.9-6.5), but has now risen to Tk 7.5-7.8 per piece in the Hyderabad, Haryana and Chhattisgarh regions of India.
He said that when considering the 33 per cent import duty, the costs of loading and unloading, packaging, transportation and 2.0-5.0 per cent demurrage, the total cost per egg would increase by an additional Tk 3.2-3.6.
He feared that the price would not be competitive unless the existing 33 per cent import duty is removed, as importers would have to pay an extra Tk 2.45-2.6 per egg in duty based on the current price.
Zakir Hosain, the owner of Cheese Gallery, said they received permission from the Chief Controller of Imports and Exports in October and completed all formalities, including letters of credit (LCs).
However, there were difficulties obtaining bird flu clearance from the sourcing countries. There is a requirement to source eggs from countries without bird flu, which is challenging as no country can claim it is totally free of the disease.
The government recently added the WHO-prescribed provision to the clause.
Shakil Ahmed, the chief operating manager of Mim Enterprises, said their eggs would arrive in Bangladesh within a week, as they have submitted all required documents to the exporters.
He recommended the government consider waiving the existing import duty on eggs to enable traders to sell eggs at competitive prices.
Suman Hawladar, president of the Bangladesh Poultry Association (BPA), said there is now no logical ground to import eggs. He said importers would surely incur losses or need subsidies if they brought in eggs.
According to the commerce ministry, Bangladesh has a daily demand for 40 million eggs. The government has permitted the import of enough eggs to meet the country's maximum demand for a week.
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