The crisis of the dollars has increased anxiety among the businessmen as they can’t open Letters of Credit (LCs) to import Ramadan products as the holy month is knocking on the door.
As the prices of daily essentials have already skyrocketed in the country before the upcoming Ramadan, it will be very difficult to keep the prices under control during the holy month for high demand, said the importers.
In this situation, the market of holy Ramadan has been facing the challenge of the ongoing dollar crisis.
People concerned said there is a supply crisis in the international market due to the Russia-Ukraine war. For this, the prices of products have increased besides ship fare. Internal production has also been interrupted lack of gas. In this situation, the dollar crisis has increased immense pressure on the consumer market.
Businesses proposed the commerce ministry keep a quota of dollars to import daily essentials. The commerce ministry had sent a letter to the central bank saying to give dollars from the reserve to import products during Ramadan. However, this initiative couldn’t improve the overall situation. In the last meeting of the Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) last week, businessmen alleged that they are facing settlement of LCs. They can't import a lack of dollars in banks.
Recently in a meeting of the Directorate of National Consumer Rights Protection, Bangladesh Tariff Commission Assistant Chief Md Mahmodul Hasan said the prices of consumer goods might be increased up to 30 per cent compared to the last Ramadan due to unrest in the international market and devaluation of taka against the dollar.
The dollar crisis has decreased the import of daily commodities. According to the Bangladesh Bank data, the rate of opening LCs has decreased by 14 per cent in July-December of the current fiscal year. Besides, the settlement rate of LCs has decreased up to 9 per cent during the period.
According to a report, prepared for the meeting of the 'Task Force on Review of Commodity Prices and Market Situation' of the Ministry of Commerce, sugar import has decreased by 2 lakh 7 thousand 945 metric tonnes in July-December of the current fiscal year than the same period of the previous fiscal. Similarly, import of crude palm oil decreased by 1 lakh 32 thousand 938 metric tonnes and chickpeas decreased by 14 thousand 164 metric tonnes.
The businessmen, however, said sugar and chickpea import from India has increased slightly recently.
Mohammad Mahiuddin, secretary of Chaktai-Khatunganj Aratdar Samity, a trade organisation in the port city Chattagram, said except for two to four banks, maximum banks don’t take LCs. Those banks take LCs, these are keeping a cent per cent margin. Banks said businessmen would have to pay the latest price of the dollars after the settlement of LCs. These conditions will create a big challenge in the dollar price and it will impact the prices of daily necessities in the month of Ramadan, he added.
The business leader also said if the price of the dollar decreases, the price of products also decreases and the price of the dollar increases, the price of the products also increases during Ramadan.
@ The article was published on print and online versions of The Bangladesh Pratidin on February 17, 2023 and has been rewritten in English by Golam Rosul.
