Concerns mount as high dollar value impact food imports 

In anticipation of Ramadan, the Bangladesh Bank (BB) has granted permission for the import eight food products, including chickpeas, onions, and oil. 

Commercial banks in the country have already initiated operations, while the Ministry of Commerce has sought duty exemptions on three of these products from the National Board of Revenue (NBR). 

Despite these efforts, concerns are rising among traders due to the elevated dollar value and various conditions imposed on food products in India.

Trade sources reveal that in compliance with the central bank's directives, commercial banks have commenced operations, including the import of various foods such as chickpeas, to meet the demand during Ramadan.

However, challenges arise due to the high value of the dollar and stringent conditions on food items in India. 

Complications have led to a six-month suspension of sugar imports, and the normal import of onions to India has been disrupted due to additional duties. Additionally, there has been an increase in additional import duties on spices.

Aminul Haque, Vice President of the Benapole Import and Export Association, disclosed that the demand for the month of Ramadan includes approximately 300,000 metric tons of edible oil, 200,000 tons of sugar, and 100,000 tons of chickpeas.

Importers, such as Mahabubur Rahman, expressed concern over the exchange rate, noting that despite the government's dollar rate of Tk 115, banks are requiring payments ranging from Tk 126 to Tk 128. This poses a significant challenge for businesses that need to purchase at a high price and sell at a lower price.

Rahman also highlighted that the Indian government has raised the export price of onions from $150 to $850 per ton.

Zakir Hossain, the manager of the Benapole branch of the South Bengal Agriculture and Commerce Bank, mentioned that importers are being assisted in opening Letters of Credit (LC) for products during Ramadan in accordance with government instructions.