Import activities for essential commodities in Bangladesh have surged ahead of Ramadan, with traders increasing their issuance of letters of credit.
A report by the Bangladesh Trade and Tariff Commission (BTTC) to the Ministry of Commerce highlights that there has been a notable rise in imports over the past six months, ensuring that there will be no supply disruptions.
The BTTC’s analysis, which scrutinises the demand for essential goods, import volumes, letters of credit, and local production, reveals that the global market remains stable.
However, the rising value of the US dollar remains a concern, potentially impacting the price of goods.
Market analysts warn that despite stable import and supply conditions, local market manipulation can sometimes drive up prices.
They emphasise the need for vigilant monitoring at every stage of the supply chain.
Historically, production issues or factory shutdowns have led to supply shortages and subsequent price hikes.
The government’s recent tariff reductions on items such as edible oils and sugar aim to ensure affordability for the general public, a recommendation reinforced by market experts.
Traders echo the BTTC’s sentiment, asserting that supply chains will remain robust.
The absence of instability in the global market is reassuring, though the fluctuating dollar rate remains a potential trigger for price increases.
With Ramadan commencing in the first week of March, preparations are well underway.
Letters of credit for imports are expected to be issued until the end of January, with wholesale trading of Ramadan essentials starting in February.
A recent report by the Tariff Commission, submitted to the Ministry of Commerce on 9 January, indicates a substantial increase in the issuance of letters of credit for goods such as unrefined sugar, rice, lentils, chickpeas, and dates between 1 July 2024 and 5 January 2025.
Letters of credit for 86,000 metric tonnes of dates have been issued, marking a 79% increase from the previous year’s 48,000 tonnes.
Similarly, letters for 189,000 tonnes of chickpeas, up 60% from last year, and for 202,000 tonnes of lentils, an increase of 21%, have been opened.
Although there has been a decline in the issuance of letters for onions, it is unlikely to affect the market significantly, given the current availability of locally produced onions, which has already driven down prices.
The peak season for seed-grown onions will coincide with Ramadan.
National Board of Revenue data shows significant imports of chickpeas, with 40,000 tonnes imported between 1-11 January.
Other notable imports include 56,000 tonnes of peas, 13,000 tonnes of lentils, 177,000 tonnes of edible oils, and 43,000 tonnes of unrefined sugar.
Following the interim government's assumption of office last September, there was a rise in commodity prices.
In response, mid-October saw reductions in tariffs on several essential items, including rice, eggs, soybean oil, palm oil, sugar, onions, potatoes, and dates, boosting import initiatives.
Tariff Commission suggests that the tariff reductions should stabilise prices of essentials like rice, edible oils, and dates during Ramadan.
Ongoing dollar crisis, although alleviated to some extent, still affects the importation costs.
