The government is looking for alternative countries to import goods.
Inflationary scourge crushes the common man, it also embarrasses the government. Food inflation has consistently remained in double digits for eight months in succession. In November last year, it increased to 13.80 percent. That means, whatever amount of foodstuffs could be purchased with 100 taka in November last year, the same quantity will require 113 taka and 80 paisa in November this year. BTTC has already submitted a report in this regard to the Ministry of Commerce, identifying some other countries besides India.
Commerce Ministry sources said BTTC has sought alternative sources to maintain the price and supply of potatoes and onions stable. In line with the proposal of the BTCC, the Ministry of Commerce has advised importers to focus on importing these products from alternative countries.
The concerned traders also believe that with proper planning and management, the country can maintain a normal supply, as importing from other countries will compensate for the shortage in daily commodity supply. Cost can also be minimized through proper planning and by monitoring the market situation.
It is known that presently, the country is importing onions mainly from India and Myanmar. Besides this, small imports are being made from Pakistan, China, and Turkey. While potatoes are imported only from India. Here, in the BTCC report, the imports of potato mention the name of Germany, Egypt, China, and Spain. Similarly, onion imports have been imported from China, Pakistan, and Turkey.
The BTCC report estimates the annual demand for onions in Bangladesh is 2.6 to 2.8 million tons. In the 2023-24 fiscal year, the production of onions was 3.9 million tons. But excluding 30 percent storage losses and seeds, the supply was a little more than 2.7 million tons. However, traders believe that the calculation of its production and demand is not accurate. Due to this, even after good production in the country, at least 30 percent of the demand for onions has to be imported. The report says that 9.5 million tons of onions were imported from India, Pakistan, Turkey, Egypt, China and Myanmar in the 2023-24 fiscal year.
Coming to the potatoes, it is claimed that the country’s demand is 8.5 to 9 million tons potatoes each year. The local production comes at 10.6 million tons. Supply by excluding 25 percent of its storage losses and seeds equals to 7.9 million tons. 150,000 tons potatoes were imported from India at fiscal year 2023-24 period.
Trade Advisor Sheikh Bashir Uddin told our time that the government is aware of the suffering of the common people due to the prices of goods. Full efforts are being made to reduce prices. Due to the various steps taken so far, consumers have already started getting relief in some products. If the supply and quantity of the products can be further increased in the market, it will bring stability in the commodity prices very soon. “Some immediate and some long-term steps are being taken to bring down the inflation rate,” he said. As soon as the price became high, we started selling potatoes at affordable prices through TCB. And permission has been given for importing potatoes. These are some immediate steps. On the other hand, in cooperation with the National Board of Revenue, import duties on dates, sugar, soybean oil, eggs, and some other products have been reduced significantly. Accepting that this will cause a revenue loss of thousands of crores of taka to the state, these duties have been reduced only to bring stability to the price of goods.
He added that Bangladesh would have to adopt liberal measures in order to balance the demand and supply in international trade. The syndicate, talked about in the local market, now in the country, regarding importing goods, even if it is a syndicate, is a problem. Bangladesh relations with other countries are not commercial, but political. India, Pakistan, or China is no problem for Bangladesh; we want to connect everybody trade-wise.
Different types of daily essentials like onions, rice, pulses, green chilies, ginger, and spices have been imported from the neighboring country of India in thousands of tons every year to meet the demand within the country. Thus, the dependence on this country has gone up tremendously to meet the ever-growing demand of daily essentials in the local market. Moreover, dependence on one or two specific countries regarding specific products has also increased. So, if exports from those countries are restricted or banned, instability arises in the domestic market. Therefore, instead of relying on any one country for the import of any product, the government is giving importance to alternative sources.
The government currently has withdrawn customs duties to manage the onion and potato market. Even then, imports are not increasing. Due to increased costs and various adversities in the changed context, the import of goods from India is being hampered. On the other hand, due to the small amount of imports from alternative source countries, the supply in the domestic market is not increasing at the desired level. The government thus is compelled to hurry towards restoring relief in the market. It also does not want the normal supply to be disrupted during Ramadan this time round. Extra importance is, therefore, being given to importing consumer goods from other countries and India.
Concerned traders opined that because it is a neighboring country, it takes less time and the cost is lower. Hence, importers would have more inclination towards the imports of products from both India and Myanmar. The opposite way, while the possibilities of importing exist in the other source countries, it draws less attention. But if the government pays attention, it is possible to meet the domestic demand by importing from other countries instead of relying on one or two countries. For onions, China, Egypt, Pakistan, Turkey; for rice, Vietnam, Laos, Myanmar; for pulses, Australia, Turkey; for potatoes, Holland, Poland; for spices, Syria, Iran, Indonesia; for ginger, Thailand, China; for wheat, Russia, Australia, Canada – these source countries can be given importance.
There is a big wholesale centre of consumer goods in Moulvibazar under the capital’s Old Dhaka. All varieties of daily essentials, including edible oil, sugar, flour, and spices are collected by retailers from this market in the capital and adjacent areas.
Even though attention is being paid to increasing imports from alternative countries, imports from neighboring countries are considered to be quite advantageous, said prominent market analyst and former Commerce Secretary Golam Rahman. He told our time, business will continue at its own pace. Where it is possible to make a profit by importing products at low cost and easily, traders will naturally go there. It does not matter which country they come from. Politics and economics cannot be combined. Nothing good will come of it. This will be convenient to import from there in case there is no obstacle in the export of the neighboring countries. If it so happens that a problem is created in the imports or any obstacle has been created, then attention can be paid to increasing the imports from alternative countries.
The former president of CAB also said, “Along with imports, domestic production should be increased. Products that are produced in the country, such as onions, potatoes, and rice, should be produced in more significant amounts.” Along with this, the supply system should also be improved.
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