Bangladesh : Import of essential commodities rises up to 85pc in Oct-Jan
Despite an 85% rise in imports of essential Ramadan commodities like soybean oil, chickpeas, and dates, prices remain high in Bangladesh. Market shortages persist, with soybean oil selling above its maximum retail price. The Bangladesh Trade and Tariff Commission (BTTC) expects stability due to falling global prices and government interventions but emphasizes the need for strict market monitoring.
The imports of many key essentials necessary in the holy month of Ramadan increased by up to 85 per cent in the October-January period of FY25, shows the latest data from the Bangladesh Bank’s import- monitoring division.
Despite the tectonic rise in imports, thanks to various government facilities, the prices of many of the essentials are much higher than expectations, said market observers.
The prices of soybean oil, chickpeas, dates, and lentils have increased markedly ahead of Ramadan, according to kitchen market sources.
The central bank report said during the October-January period, sugar imports were 0.454 million tonnes, up 20 per cent from 0.379 million tonnes in the same period of FY24.
Soybean, pulse, ginger, garlic, date, and chickpea imports also jumped by 23-85 per cent during the period.
Even though imports rose, the soybean oil supply has yet to normalise in the market despite repeated efforts by the government and frequent assurances from refiners.
Half of the groceries in Dhaka are still out of bottled soybean oil, while many are selling duplicate oil at Tk 185-200 per litre against the maximum retail price (MRP) of Tk 170-175 per litre, said Ajmir Islam, a grocer in Mohammadpur.
He said non-bottled and bottled soybean oil prices were Tk 160-165 per litre and Tk 173-175 per litre, respectively, in this period last year.
According to him, distributors at Town Hall in Mohammadpur are supplying only one carton of oil against the weekly demand of six to seven.
Meanwhile, chickpeas are being sold at Tk 125-145 per kg, depending on quality, compared to Tk 90-125 per kg in this period last year, said grocers.
Date prices are already 15-20 per cent higher than a year ago, according to the Trading Corporation of Bangladesh (TCB).
However, in January, the Bangladesh Trade and Tariff Commission (BTTC) stated in its report that the prices of key essential items are likely to remain stable during Ramadan due to multiple government initiatives.
The report emphasised the need for intensified market monitoring and oversight of the stock and supply situation of commodities like lentils and gram in the domestic market because global prices of these Ramadan essentials recently went up.
Sent to the commerce ministry requesting follow-up measures, the report analysed the local market of essentials as part of the government’s preparations for Ramadan and outlined necessary steps to be taken to maintain stability.
Since December 2023, global prices of energy and non-energy commodities, food (oil and meals) and other food items, raw materials, and fertilisers have shown a downward trend.
However, food grains, such as rice and maize, barely exhibited a similar trend, raising concerns.
The BTTC report also mentioned that a potential resolution to the Russia-Ukraine war could improve the global supply chain, which may normalise the availability of many imported products.
Consequently, the downward trend in international market prices is expected to positively impact the prices of imported essential products in Bangladesh.
A decline in fertiliser and fuel oil prices is anticipated to lower production and supply costs for locally produced agricultural items, the report said.
However, BTTC emphasised the need to maintain stability in the USD exchange rate as well as ensure balanced fiscal and monetary policies to keep prices stable. It also urged the Bangladesh Bank to take necessary measures in this regard.
The report focused on the possibility of price decrease during Ramadan due to falling international prices of edible oil as well as the reduction in duties and taxes on imports.
The government has exempted or reduced duties and taxes on rice, edible oil, and other essentials’ imports. Traders and the government have already imported around 0.43 million tonnes of rice. Vice-President of the Consumers Association of Bangladesh (CAB) SM Nazer Hossain praised the government’s efforts.
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Source : The Financial Express
