Traders have proposed raising the price of edible oil by Tk 15 a litre before Ramadan, citing higher prices on the international market and rising transport costs. Date importers, meanwhile, have asked for a cut in import duty.
The proposals were made on Monday at a meeting with Commerce Minister Khandaker Abdul Muktadir to review import preparations, supply problems and prices of essential goods ahead of Ramadan.
The ministry took no decision on the edible oil proposal. It said the duty cut on dates would be discussed with the National Board of Revenue (NBR).
By importers’ reckoning, dates now carry about 55 percent in duties and taxes. They say high assessed values and rising freight costs are pushing up the cost of importing them.
Importers said instability in the Middle East has made shipping goods more complicated. Having to bring goods by other routes has raised transport and supply costs, and continued difficulty in opening letters of credit (LCs) could disrupt supplies further.
The commerce minister called for a transparent and reasonable duty structure that takes account of differences in the variety, quality and price of dates.
He said dates of different grades are imported into Bangladesh from about a dozen countries, including Egypt, Saudi Arabia, Iraq and Algeria, and setting a single assessed value for all of them could cause problems.
Importers asked for duty to be set on the actual quality and price of dates rather than on a fixed assessed value. In their view, setting an assessed value higher than the real price of ordinary dates increases the duty and the overall cost of imports.
They also called for a more flexible tax regime for fruit imports, arguing that high duties put fruit out of reach of ordinary buyers.
The meeting discussed that although setting import duty is the NBR’s job, coordination among the government agencies involved is needed.
The meeting also discussed putting the existing duty concession on date imports into effect quickly. Officials said internal preparations for this were already complete.
The authorities concerned assured importers that steps would be taken to solve the problems they raised.
Imports up ahead of Ramadan
Imports of several key essentials have already risen ahead of Ramadan. The government has urged traders to import what is needed on time to keep the market well supplied.
According to figures presented at the meeting by the Bangladesh Trade and Tariff Commission, imports of edible oil, sugar, chickpeas, lentils and dates from July 1 to October 25 this fiscal year were higher than in the same period last year.
Edible oil imports in the period totalled 823,000 tonnes, 118,000 tonnes more than the 705,000 tonnes of the same period last year.
LCs were opened for 805,000 tonnes of edible oil, 131,000 tonnes more than a year earlier.
Sugar imports were 687,000 tonnes, up 153,000 tonnes on the same period last year. LCs for 810,000 tonnes of sugar were opened in the period.
Imports of chickpeas, a staple of the iftar meal, also rose sharply: 82,000 tonnes up to October 25 this fiscal year, against 12,000 tonnes a year earlier, a rise of 70,000 tonnes. LCs were opened for 138,000 tonnes of chickpeas.
Lentil imports were 122,000 tonnes, 64,000 tonnes more than a year earlier, with LCs opened for 114,000 tonnes.
Date imports in the period were 11,000 tonnes, against 4,000 tonnes in the same period last year.
The meeting urged traders to import on time and keep the market supplied, and said the government would give every help to keep supplies of essentials normal.
A senior commerce ministry official said demand for edible oil, sugar, lentils, chickpeas, dates, chicken and eggs doubles in Ramadan compared with a normal month.
He said that, as part of early preparations, the ministry had talked to traders in these sectors and asked about their import plans and any problems they faced.
Small lentil mills squeezed by big traders
Traders told the ministry they were ready to keep chickpea and lentil supplies normal and prices stable during Ramadan. But the meeting also heard of the problems small lentil mills face in running their businesses.
Haji Nesar Uddin, president of the Bangladesh Pulse Traders Association, said the commerce ministry wants chickpea and lentil supplies and prices to stay normal in Ramadan, and traders had told the ministry they were ready to carry on business as usual.
“But the problem lies elsewhere,” he said. “The country depends entirely on imports for chickpeas, and about 80 percent of the demand for lentils has to be imported. Because of the big traders, ordinary lentil mills can no longer do business. The commerce ministry has to understand this.”
He said date traders at the meeting had demanded lower duty at the import stage.
Md Nurul Islam Mollah, secretary of the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association, declined to comment on the meeting.
Egg and chicken supplies expected to stay normal
Poultry sector representatives told the meeting that egg and chicken production is currently normal.
The farm-gate price of eggs has fallen from Tk 11.50 each a short while ago to under Tk 10, close to the cost of production. With no significant disease outbreak on farms, they see no risk of a major shortfall in production or supply.
They said demand for eggs may fall somewhat in Ramadan as breakfast habits change, but demand for chicken may rise after Eid, which could affect prices.
They added that under the current import policy, eggs and meat cannot be imported without special government permission.
Watching world prices and duties
A review by the Bangladesh Trade and Tariff Commission said prices of edible oil and chickpeas are edging up on the international market, while lentil prices have fallen.
The meeting agreed that international prices, import costs and local supplies need to be watched closely.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report