And we also asked the Minister about a private importer named Julio Castillo. Reports are that he imports containers of vegetables from Mexico using BMDC permits, but that those veggies are then sold locally for a huge markup.
While Mai said he didn't know much about this, the administrator at BMDC told us that the prices are sometimes higher because of the fluctuating exchange rate, since they also must pay duties. He added that the prices may also seem higher because contraband vegetables are sold at a much lower cost.
Valetin Carillo, Administrator, BMDC
"We buy our produce directly from Mexicans, you know, from Mexico. Onion, potato, lettuce, broccoli, cauliflower, I believe those are the main commodities that we import when there's not locally produced."
"And we need to hire somebody to bring it in. So, and that's where Julio Castillo comes in, he brings it in for us. And then after we review prices and everything, then we place our markup and then we sell it to the wholesalers, which is a various wholesaler across the country that do that, you know."
"We don't sell retail wholesale. We keep control of that. And for example, Orange Walk is lesser than Belize and less than San Pedro, less than Cayo and way to PG because of the distance, you know, fuel is up."
"So these things influence. But one thing that I need to note mention is that some of our products are higher than the contraband product because we pay transportation, we pay the BAHA fees, the from the Mexican side, the broker from the Mexican side."
"We pay all the duties, GST, environmental tax and the import duty, you know. So for example, a box of lettuce is almost twenty three, twenty four dollars duty, you know. And the cost, let's say for example, 450 pesos."
"Right now the exchange rate is at 7.50. Before, like for example, last year it was at 8.50. So that's a big difference in duty because we pay a duty in the value of the product. So, 7.50 and 8.50, that's almost 15% difference when it comes to exchange rate."
"So contraband, for example, they can sell like $10, $15 less than us per box, you know, and that's what we constantly are fighting or not fighting. I see it as a competition, you know, but it's hard to compete with contraband that all the borders they can come in anytime from the border and that is what, you know, and it's affecting us."
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