Significant shipment of Ramadan necessities arrives
There has been a significant increase in the import of essential goods in preparation for the upcoming month of Ramadan. The imported volume of goods in January alone is projected to meet the entire demand for Ramadan, and there is a possibility that the demand for certain products may even be exceeded.
Importers anticipate a surge in consignments entering the country in February, which will help boost market supplies leading up to and during the holy month of fasting. Initially, there were concerns about disrupted market supplies following a political transition and a decline in imports by some major industrial players. However, the situation has since normalized, with established importers back in operation and new entrants in the industry.
The potential for lower prices due to increased imports hinges on import costs, which experts recommend monitoring regularly to prevent any unforeseen challenges. Mustafa Haider, the managing director of TK Group, emphasized the steady increase in imports during January, with more shipments expected to arrive in February, suggesting no risk of a supply shortage given the stable global market conditions.
In a bid to facilitate imports and stabilize prices, the interim government has waived customs duties on essential items such as edible oil, sugar, onions, potatoes, and dates. Additionally, the easing of the foreign exchange crisis has enabled the opening of letters of credit (LCs) to further support import activities.
The Bangladesh Trade and Tariff Commission (BTTC) reported that the usual demand for edible oil during Ramadan is approximately 300,000 tonnes. Data from the National Board of Revenue (NBR) and Chattogram Customs revealed that in January, close to 400,000 tonnes of soybean and palm oil were imported, along with 300,000 tonnes of soybean seeds capable of producing an extra 50,000 tonnes of oil. This surplus indicates that supply is expected to outstrip demand during Ramadan.
Similarly, the typical sugar demand during Ramadan stands at around 300,000 tonnes. January saw the import of 153,000 tonnes of unrefined sugar, the highest amount in 15 months, with an additional 100,000 tonnes awaiting unloading at the port. More sugar imports are anticipated in February, particularly with a noticeable decrease in global sugar prices.
Other staple items for Ramadan, such as chickpeas, lentils, split peas, and dates, have also witnessed increased imports. Moreover, the reduction in import duties has contributed to a decrease in costs for importers, thereby potentially influencing consumer prices positively.
Despite challenges in onion imports due to ample local supply, overall imports of essential goods in January totaled $1 billion, marking a significant increase of almost 74% compared to the same period in the previous year. The Chittagong port has played a pivotal role in supporting imports, receiving a large portion of essential goods to meet Ramadan demand adequately. With numerous ships already unloaded and departed, the market is expected to remain stable leading up to Ramadan.
