The Finance Ministry plans to remove the duty tax on imports for three months ahead of Rosh Hashana amid rising honey prices – a customary food for the Jewish holiday – without asking them to commit to lower prices for consumers.
Last year, duty-free import quotas were opened for honey in packages up to 1.5 kg, with those benefiting being large retail chains in the country that committed to the lowest consumer prices. This process essentially involved price control.
This year, however, the Finance and Agriculture ministries have yet to announce such a process for a duty-free quota. Therefore, the Finance Ministry now seeks to allow duty-free imports without any commitment to lower consumer prices.
Typically, honey prices don't rise during Rosh Hashanah but instead drop despite the high demand, with certain packages being sold promotionally for as low as 10 shekels. However, honey prices in Israel are generally considered high and sometimes shortages of packages sold at low prices are seen during the holiday month. Other packages become more expensive, benefiting retailers and manufacturers.
Last year, import quotas of 500 tons of duty-free honey were distributed with a commitment to low consumer prices. The quota distribution aimed to increase market supply and price control was intended to lower honey prices during the holiday period.
The move led to a 60% reduction in the price of duty-free imported honey and improved the supply rate in the markets. It succeeded thanks to the retailers' commitment to low prices and the fact some of the imports arrived from Turkey, which helped reduce costs.
This year, Turkey is closed to imports to Israel. In 2023, prices fell to less than 20 shekels per kilogram of honey (2.2 lb.), with 900 grams (1.9 lb.) sold for 15.90 shekels and around 9.90 shekels for 500 grams (1.1 lb.), largely thanks to Turkish imports.
Doron Livne, chairman of the Israel Beekeepers' Association from Kfar Bilu, previously said that importing cheap honey is a populist move that will ultimately increase the cost of living in the country.
"Retail chains are importing recklessly, without distinction, from any country and everything they can – fruits, vegetables, meat, olive oil – and we haven't seen a reduction in consumer prices! Now they're also importing honey at a cost of 15 shekels per kilogram, a price that’s unreasonable for producing pure and healthy honey according to all consumer indices for honey prices worldwide," he said.