Thanks to the Tariff Quota... Banana Prices Down 11%

The wholesale price of bananas has dropped by 11% over the past month. This is due to the government's temporary exemption of tariffs to reduce the burden of consumer prices.

According to the Ministry of Agriculture, Food and Rural Affairs on the 8th, Korea Del Monte Fresh Produce lowered the average selling price of Philippine bananas in the first week of December by about 11.0% compared to the first week of November, following the expanded application of tariff quotas in the food sector.

A Del Monte official said, "To support the government's tariff quota policy aimed at stabilizing food prices for ordinary citizens, we have reduced the selling price of bananas," adding, "To ensure that the benefits of the tariff quota continue to reach consumers, we plan to maintain the price reduction policy throughout this month, lowering the average selling price in December by about 11.6% compared to the previous month."

Philippine bananas account for about 73% of the bananas supplied by Del Monte. Taking advantage of the expanded tariff quota application, Del Monte plans to collaborate with major retailers such as Coupang, Lotte Mart, Homeplus, and E-Mart Everyday to hold discount sales events offering 10-20% off during this month.

A tariff quota refers to temporarily lowering or exempting tariffs on certain imported goods. In response to rising prices, the government applied tariff quotas to a total of 109 items (including 7 overlapping items), adding 15 emergency quota items to the 101 regularly planned quota items. In fact, the government introduced tariff quotas (reducing tariffs from 30% to 0%) on 1,000 tons of mangoes and 5,000 tons of pineapples, fearing a shortage of gift products for Chuseok due to damage caused by spring cold and hail to apples and pears. The purpose was to lower prices and encourage substitute consumption. Subsequently, the government also lowered the applied tariff rate from 30% to 0% on 30,000 tons of bananas, 1,300 tons of mangoes, and 2,000 tons of grapefruits.

Kim Jong-gu, Director of Distribution and Consumer Policy at the Ministry of Agriculture, Food and Rural Affairs, said, "We will ensure the smooth import of 33,000 tons of tariff quota volumes for imported fruits such as bananas and mangoes by the end of the year, and continue to request cooperation from importers to stabilize prices," adding, "We will strive to ensure that the benefits of tariff reductions reach consumers."

Banana (stock photo)

This content was produced with the assistance of AI translation services.