Thailand Proposes Durian Export Duty, Analysts Forecast Higher Prices, Quality in China

Thailand’s government has proposed charging export duties on durians, a move that analysts said could raise prices in China while also improving the fruit’s quality.

The proposal concerns durian, a major cash crop in Thailand, and is part of a draft bill aimed at establishing a fund for research and “sustainable” development of the sector.

Proposed levy linked to research fund

Thailand’s government’s public relations department said last month that the draft bill would include the collection of fees.

Southeast Asian media outlets and agricultural publications have tipped the proposed export duty to be as high as 2 baht (5 US cents) per kilogram.

The sources describe the levy as part of a wider funding plan rather than as a standalone charge.

Analysts said the additional cost could be passed on to Chinese supermarkets, potentially making durians more expensive for buyers in the country.

China’s importance to the Thai durian trade means the impact of the proposal could extend beyond Thailand’s producers and exporters.

HSBC analysts said in a report published in 2023 that China consumed more than 90 per cent of the world’s durians.

Quality gains remain part of the argument

Analysts said the proposed duty could raise prices in China along with the quality of the fruit.

The draft bill’s stated focus on research and “sustainable” development provides the policy context for that quality claim.

The available details do not state when the proposed duty would take effect or whether the levy would ultimately be set at 2 baht per kilogram.

Source: South China Morning Post