Orange exporters from the region are in a quandary as Bangladesh, the biggest importer of Vidarbha oranges, has once again hiked duty from present 88 taka per kg (₹64) to 101 taka per kg (₹72).
Vidarbha is the leader in orange production. Over 1.26 lakh hectare area in the region is under orange production. Of this, 78,000 hectares lies in Amravati district alone.
Warud and Morshi tehsils in the district account for 43,000 hectares of orange crop. No wonder Warud is known as the ‘California of India’.
Ramesh Jichkar, CEO of Shramjivi Nagpuri Santra Producers Company Ltd, Warud, said Vidarbha produces at least 8 lakh MT of orange twice a year through two crops (mrig & ambia bahar).
“However, consistent hike in import duty by Bangladesh is pinching farmers and traders alike. In the last five years, Bangladesh has consistently increased import duty on orange fruit from ₹20 per kg in 2019 to ₹72 now,” said Jichkar.
The Indo-Bangla Orange Association (IBOA) president Sonu Khan has demanded immediate intervention from the Central government. “We have been meeting top leaders from Vidarbha, but positive results are not forthcoming. Of the entire produce in Vidarbha, 25% is exported to Bangladesh. However, a hike in import duty will shrink the exports to less than 15% this year,” said Khan.
During the orange season, at least 60 truckloads of produce are daily transported to Bangladesh from Warud, Morshi, Achalpur, Pandhurna, Saunsar and other places in the region. This figure has come down by 50%.
The statistics speaks for themselves. In 2020-21, over 1.41 lakh MT of mandarins were exported to Bangladesh. In 2021-22, the exports came down to 1.03 lakh MT followed by 60,000 MT in 2022-23 and 25,000 MT in 2023-24.
After representation by IBOA, the state government in November 2023 issued a formal GR committing to share 50% of the import duty of exporters as subsidy. However, the state is yet to pay ₹30-35 crore towards this duty.
The IBOA submitted a memorandum to Wardha MP Amar Kale, asking him to raise the issue in Lok Sabha and take up the matter with the ministry concerned in the interest of orange growers.
Jichkar said the government should retaliate by increasing the duty on hosiery and other products exported by Bangladesh if it doesn’t reduce import duty on oranges.