Thailand’s durian trade has been greatly assisted by the Free Trade Agreement (FTA), facilitating exports by limiting the import tax in the member nations with Thailand and ASEAN. Thai Durian is exempted from importation tax in sixteen countries, including China, Hong Kong, Australia, New Zealand, Japan, Vietnam, Singapore, Indonesia, Laos, Cambodia, Myanmar, Philippines, Brunei, India, Chile, and Peru. Two nations grant a decrease in importation tax, South Korea at 36% from 45% and Malaysia at 5%. The FTA has been a supporting factor in boosting durian exports from Thailand to China. Another factor aiding Thai durian exports is the growing consumption power in China, leading to increased demand for the fruit.
Effect of Covid-19 on trade
Until the outbreak in December 2020, Thailand was largely unaffected by the pandemic. However, the country suffered a severe second wave of infections in December 2020, which began in a seafood market southwest of Bangkok. Thailand is currently going through a third Covid surge that commenced in March 2021. The spread of the virus has left durian producers concerned, affecting exports to China, Thailand’s largest durian market. Earlier in 2021, Chilean cherry imports to China were affected by a surge of the virus in Chile that led to Chinese authorities discovering that there had been coronavirus contamination in imported cherries. This incident led cherry prices to drop drastically, and Thai durian growers are concerned that the same situation may occur regarding durian exports to China.
Musang King set for the Chinese market
The Musang King variety from Thailand has grown to be one of the most popular durians in China, and it has the most significant retail volume of imported durians. The Musang King is considered more appealing than other durian varieties such as the Golden Pillow or Sultan King due to its gorgeous yellow flesh. Almost the entirety of the imported Musang King in the Chinese market comes from Malaysia. The Musang King durian from other nations has been extremely rare over the past few years. According to the Modern Age Fruit Trade Association (MAFTA), the Thai Musang King durian is set to penetrate the Chinese market for the first time in 2021, following a large harvest expected to supply China for the next few years.
Sources:
- SCMP. “Thailand’s durian dealers fear for China exports after coronavirus surge.”
- Fresh Plaza. “Thailand: Durian traders fear for effects of Covid on exports to China.”
- Fresh Plaza. “Musang King durians from Thailand aim to conquer the Chinese market in the next few years.”
- Global Times. “China importing $2.2 billion durian from Thailand in 2020.”
- Thai Residents. “Thailand No.1 Durian exporter, 800M USD in 6 months.”
- Bangkok Post. “China demand spiking for Thai durian.”
- Tridge. “Overview of Durian Market in Thailand.”
- Ace Star International. “Thailand Has Become World’s No.1 in Durian Export.”
- CGTN. “Online orders from China drives Thai fruits exports.”