The New Nation - Internet Edition

Pulack Ghatack

Puting a broad hint of supply side increase before the holy Ramzan, Bangladesh Bank (BB) has provided a positive picture of import with significant rise in opening of fresh leters of credit (LCs).

Opening of fresh LCs against imports have increased by 20.46 percent during the first 68-days of the current fiscal 2007-08, against the corresponding period of the previous fiscal year.

But, according to the sources in the private sector, overall import has declined in amount, though it has increased in terms of value. They, however, were hopeful to say that the scenario will take a turn shortlyn as the recent assurances of the Chief Adviser and Army Chief about not to harass businessmen has created positive Impact

Data and figures provided by the central bank show an optimistic picture of cereal imports also, as opening of LCs against imports of the items have increased remarkably.

The opening of import LCs of some essential items including rice, wheat, sugar, milk food, edible oils, pulses and onion also rose to meet the growing demands of the essentials in the local markets.

But the importers are saying that it was not the real picture of import, as the import volume of goods did not increase in parallel with the price. Import price have gone up due to soaring prices in the international market, they said.

A Rouf Chowdhury, president of the Bangladesh Edible Oil Refiners Association, said, "In fact, due to the sharp rise of the prices of most food items in the global market, importers are procuring far lesser quantities of edibles though they are paying higher prices than before."

He said that imports of certain food items have declined, over the year, by up to 23 per cent, which poses the serious threat of supply crisis, but the BB's data tends to make countrymen feel that the import situation is improving.

The business leader said that the situation is likely to improve after the assurance of the government high-ups to keep businessmen out of trouble on September 6 last

He said the present stocks of edible oil and wheat were enough to meet the demand for Ramzan, but there may be causes of concern for post-Ramzan period.

The import LCs worth $3.86 billion were opened during that period as against $3.07 billion for the corresponding period of last year.

According to the central bank statistics prepared for July 1 to September 6 last, the opening of LCs for rice was $167.75 million, for wheat $160.71 million, for sugar $31.49 million, for milk food $31.32 million, for onion $24.05 million, and for crude oil $187.84 million.

Private sector sources informed that import of edible oils, in the crude form, has declined by more than 1,20,000 tonnes by mid-August this year compared to the corresponding period of the previous year.