Imports of essential goods during Ramadan to rise

DHAKA, July 12 (BSS) - Imports of essential commodities,including rice, wheat, sugar, pulses and cooking oil, are set for a substantial rise expectedly in Ramadan, beginning from the first week of August.

Bangladesh Bank (BB) latest statistics show the overall trend of opening of LCs (letters of credit) against imports ahead of the holy month of Ramadan increased significantly that prompted the central bank pump additional green bucks into the money market to meet the soaring import bills.

A BB official said importers opened more LCs in June for a large quantity of essential commodities, particularly rice, wheat, sugar, pulses and cooking oil, targeting the Ramadan market when demands for these items go up manifold than any other time of the year.

BB statistics show that the total number of LCs for importing major commodities was significantly higher in the immediate past 2010-11 financial year, indicating that importers were more active to meet the local demands.

In the past fiscal year, LCs amounting to US $1.07 billion were opened for importing rice, US $1.34 billion for wheat, US $1.12 billion for sugar and US $1.52 billion for cooking oil.

Besides, the number of unsettled LCs till June 30 was US $274 million for importing rice, US $259 million for wheat, US $670 million for sugar and US $770 million for cooking oil.

Meantime, the central bank advised all the banks to be flexible while opening fresh LCs for import of essentials.

Some bankers also said the opening and settlement of LCs against foodgrains increased. But they apprehend that the prices of some essential items, including sugar and cooking oil, would maintain an upward trend in the local markets because prices of those are soaring on the global markets.

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