The import procedure for fertilizer has been streamlined to ensure a steady supply to farmers at the grassroots level. The Bangladesh Bank has relaxed the LC (letter of credit) margin for fertilizer imports, allowing LCs to be opened with a minimum margin, depending on the bank-customer relationship. Additionally, the central bank has instructed commercial banks to prioritize the opening of LCs for fertilizer imports.
Bangladesh Bank issued a circular on Wednesday, directing commercial banks' chief executives to implement the new policy
The directive, which took effect immediately, will remain in place until December 31 of the following year.
The circular outlines that the LC margin for fertilizer imports should now be set at a minimum level, determined by the bank-customer relationship. In addition, banks have been instructed to prioritize the opening of LCs for fertilizer imports.
Recognizing the critical role of fertilizer in agricultural production, the measures aim to simplify the import process and ensure a steady supply, while helping to keep prices at an affordable level.
Sources revealed that previously, importers were required to pay a margin of at least 30 percent for fertilizer imports. However, with the policy relaxation, LCs can now be opened with a reduced margin of just 2 to 5 percent.
Translated by Mazdud
