AN exporter of agricultural produce has called on the Government to help exporters with tax rebates because higher shipping costs associated with the geopolitical crisis was affecting their business.
Taveuni Kava and Dalo Dealers Pte Limited director Krishna Reddy told this newspaper that sea and air freight charges had all increased by more than 50 per cent.
He said in a month, he exported around 120 tonnes of fresh taro and pounded kava to Australia, New Zealand and the United States of America through air freight.
“We used to export at around $0.72 cents to $0.80 cents a kilo to New Zealand, and at around $3 to Australia or USA for air freight charges,” Mr Reddy said.
“Now charges for New Zealand has gone up to around $1.10kg and around $4kg for Australia and USA.
“So those are charges that have been added to our normal freight charges.”
Mr Reddy has been exporting frozen dalo, cassava, yams, breadfruit, yaqona, jackfruit, cowpeas, and chillies through sea freight for more than 20 years.
“Sea freight, we used to pay around $4000, now it is going up to around $6000.”
Mr Reddy said sometimes there were irregular services as well that affected the quality of the produce.
He said his business employed more than 30 staff, none of whom have been laid off despite the challenges.
Mr Reddy said the Government must help exporters by giving them a tax rebate to cushion their businesses from high costs they had incurred.
“On the other hand, I can also see that in COVID times, the Government had tax rebates in place. So, I think we had a 50 per cent tax rebate but after COVID, we had a 90 per cent tax rebate and now it’s gone back to full taxation, 100 per cent taxation.
“So if the rebates come on board, that it will help us as well.”
Company worker Jimaima Ledua cleaning up fresh taro for export. Picture: SUPPLIED
Company worker Susana Senivutu packing frozen cassava ready for export. Picture: SUPPLIED
