Traders worried about opening LCs for Ramadan market

The traders have been seeking steps to resolve the ongoing dollar crisis to normalise the market of import-based consumer products when Ramadan is just three months away.

They alleged that the traders have already been facing complexities to open the letters of credit (LCs) to import the high-demand products for the Ramadan. The Federation of Bangladesh Chambers of Commerce & Industries (FBCCI), the top body of the traders in the country, however, has assured the traders of taking steps to resolve the dollar crisis issue.

At a meeting at the FBCCI’s Motijheel office on Monday, the traders warned that they would face a crisis in importing the products on time if they can’t open LCs on time, which would ultimately affect the supply in the Ramadan.

Explaining the situation, the traders at the meeting said they have been paying a higher exchange rate for each dollar than the announced rate to open LCs for importing products. Many are not able to open LCs even after paying a sane per cent margin. The small traders have been facing the toughest challenge as the banks are providing some added benefits to big traders.

FBCCI organised the meeting to exchange views with traders of different sectors and representatives of relevant government agencies to keep the supply of products and their prices normal during the coming Ramadan.

FBCCI president Mahbubul Alam chaired the meeting, where the traders demanded a quota of dollars for the importers of daily necessities like oil and sugar.

Addressing the meeting, representative of edible oil mill owners’ organisation and City Group adviser Amitava Chakraborty said preserving a quota of dollars has become essential to keep the supply of import-based consumer products normal in the market. He also demanded an unremitting supply of gas.

Though the announced rate of exchange for a dollar is Tk 110, traders at the meeting said that they sometimes pay Tk 123-124 for each dollar for importing goods. Sometimes this inflated price also cannot ensure the availability of the dollar, they alleged.

Bangladesh Fresh Fruits Importers Association President Sirajul Islam said, “The demand for dates remains high in Ramadan. It takes nearly two months to import dates from countries like Algeria or Tunisia. But we can’t open required LCs now. At the same time we have been paying a higher price for dollars. Added duty has been imposed on importing dates too.”

The small traders have been facing the toughest challenge due to this ongoing dollar crisis, stated Bangladesh Pulses Traders Association Vice-President Bikas Chandra Saha at the meeting. “Prices of different types of pulses have increased even though the month of Ramadan has not arrived. Small traders in this sector cannot open LCs. The market has gone under the control of the big importers. Market monitoring must initiate now, otherwise the prices are likely to escalate further.”

However, Moulvibazar Traders Association President Bashir Uddin thinks there won’t be any big crisis during Ramadan if millers continue supplying daily necessities regularly.

In a bid to assure the traders, FBCCI president Mahbubul Alam told the meeting, “This is true that there is a crisis of dollars in the country and many are facing problems in opening LCs for this as well. We are in constant communication with the government over this.”

He requested the traders not to hike prices of products during the Ramadan.

FBCCI Senior President Amin Helali warned the traders at the meeting saying, “If any trader is found to be involved with hoarding, and if we can’t stop him from this, we shall hand him over to the law enforcement, if necessary.

Bangladesh Restaurant Owners Association Secretary General Imran Hasan said the policies cannot be fixed with the bureaucrats. He claimed there won’t be any crisis in the market if the businesspersons compose the policies.

Bangladesh Trade and Tariff Commission Deputy Director Mahmudul Hasan told the meeting that there won’t be any big crisis in the market if the businesspersons come forward with a positive mentality.

Among others present at the meeting were, FBCCI Vice President Khairul Huda, Bangladesh Wholesale Spices Traders Association Enayet Ullah, Bangladesh Auto Rice Mill Association President Khorshed Alam Khan and representatives of other trade bodies.