The traders have sought a special quota of foreign currency for the import of essential commodities to ensure regular supply ahead of Ramadan, citing difficulty in opening letters of credit (LCs) amid a shortage of dollars.
They raised the demand during the 5th meeting of the ‘Task Force on Review of Commodity Prices and Market Situation’ at the Ministry of Commerce at the secretariat in Dhaka on Wednesday, according to BSS and UNB.
Commerce Minister Tipu Munshi, Prime Minister's Advisor on Private Industry and Investment Salman F Rahman attended the meeting while Senior Secretary of the Ministry of Commerce Tapan Kanti Ghosh presided over the programme. Government officials and representatives of business bodies participated in the meeting.
In response to the demand for a special quota of foreign currency, the commerce minister said the government will suggest the banks for reserving a quota of foreign currency to facilitate the imports of essential commodities.
Addressing a press conference after the meeting, Tipu Munshi said he assured the concerned traders and importers that the proposal will be reviewed and discussed with the central bank.
He also hoped that the problem with opening LCs for daily commodities will be resolved soon.
Senior Commerce Secretary Tapan Kanti Ghosh told reporters that the commerce ministry would send notes to the banks if necessary so that the businessmen can import goods without opening letters of credit.
Commerce minister said, "Arrangements will be made to stock six food essentials -- edible oil, chickpeas, lentils, onion, sugar and dates -- so that there is no supply crunch in Ramadan.@
Mentioning that the price of sugar is slightly higher than other products, Tipu said that they have decided to send an official request to the NBR to reduce the duty on sugar.
In order to keep the commodity prices in check during Ramadan, he said it would be determined based on the average price of a number of goods bought by traders. Moreover, markets will be monitored to ensure that fixed rates are applied.
"A monitoring cell will check the retail market to determine prices in coordination with the import and supply of goods," Tipu added.
The commerce minister also urged consumers not to stockpile an entire month's worth of groceries during Ramadan to keep the prices under control.
“The government of India has been informed not to stop the export of some essential items without prior notice. In addition, the Indian government has ensured the supply of essentials as per Bangladesh's requirement,” the minister said.
The relaxation of the cash margin rate against the opening of import LCs is important to keep prices of daily essentials at a tolerable level and the supply adequate during the ensuing Ramadan.
The central bank fixed the opening margin rate for LC settlement at 75 per cent to 100 per cent in a bid to limit imports to save the depleting foreign currency reserves in the country.
Earlier, the central bank approved a 90-day deferral to pay import bills for eight essential commodities -- edible oil, chickpeas, lentils, peas, onion, spices, sugar and dates -- and allowed opening letters of credit with a minimum margin for these products based on the bank-client relationship.
The privilege will be eligible for the date of initiation of imports till March 31 this year.