"It's the seasonal character of the fruit market. Sales of imported fruits will drop after the holidays," said senior economist Zhou Guansheng of Shanghai Fruit Ltd.

Due to a 19 percent import tariff, the prices of imported fruits are much higher than their domestic counterparts.

For instance, the wholesale price of home-grown bananas is around 2.8 yuan (US cents 34) per kilogram, compared with 3.5 to 4 yuan for the imported variety, while domestic oranges cost only half the price of those imported from the United States.

Holiday shoppers who are in the mood to splurge ignore the cost differences.

"Most of my relatives had never seen or tried some of the imported fruit I bought. They not only looked good, but were very tasty, "said housewife Wu Guoying. "I don't care about the prices as Spring Festival comes only once a year."

Zhao Zhiwu, a salesperson at a Shanghai store, said, "Our daily sales of imported fruits usually increase about 50 percent during the holiday period."

But for daily consumption, the price gap matters a lot.

"At least 80 percent of my customers buy domestic fruits," said Jin Junxiang, a fruit shop owner. "When it comes to buying fruit for home, prices are the main concern."

In anticipation of China's entry into the World Trade Organization, the Chinese government recently cut import tax imposed on agricultural products by 5.2 percent, but homegrown products still are much cheaper, Zhou said.

According to Shanghai Customs, the city imported 140,000 tons of fruit last year, accounting for 20 percent of local fruit consumption.

The improved quality of homegrown fruit is also fuelling higher sales.

"By introducing high-quality strains and growing them in a suitable climate, the quality gap between domestic and foreign fruit has been narrowed down," claimed Zhou.

Currently, high-grade foreign oranges are grown in Jiangxi and Sichuan provinces. Red Fuji apples, which originated in Japan, are now in abundance in Shandong and Shaanxi provinces, with an annual output of 20 million tons. The fruits also have been modified to suit the Chinese people's taste.

Other foreign fruit, such as kiwifruit and table grapes, are grown in Shaanxi and the northeastern Liaoning Province. "Some types of homegrown foreign fruit, such as apples, have replaced imported products in the domestic market," said fruit shop owner Jin.

In Shanghai, bananas, watermelons, apples, pears and oranges account for 80 percent of the 600,000-ton annual fruit sales.

(Eastday.com 02/01/2001)