Although the volume and price of imported items decreased in November compared to the same month in FY22, as of the first five months of the fiscal year, both of these indicators remain at the top.
Meanwhile, insiders believe that since the import requirements for the number of products have been reduced as of this month, the total import graph in the coming few months is likely to trend significantly upward in anticipation of Ramadan, which is scheduled to start in March.
The new Bangladesh Bank spokesperson, however, is certain that this additional import cost can be managed without difficulty.
Mezbaul Haque, executive director and spokesperson of Bangladesh Bank told Dhaka Tribune: “In anticipation of Ramadan and Eid, imports will certainly increase; and during this time remittance flow will rise as well. So I believe we can handle this additional pressure smoothly.”
Regarding how much it will cost to import the eight products that have been privileged in opening the Letter of credit (LC) process in the midst of the prevailing dollar crisis, he said that even though Bangladesh Bank does not have such an estimate, this facility of importing goods will remain in force till Eid ul-Fitr.
"Now I can say, this instruction will remain in force till Eid. However, if it is necessary, the time can be extended," he added.
However, according to the National Board of Revenue's (NBR) most recent data analysis, 11.7 million tons of commodities were imported in November, down from 12.7 million tons in the corresponding month of FY22.
The cost for the month under discussion was $7.1 billion, compared to $7.64 billion last year.
Although there was some slack in November, the analysis showed that both of these indicators are still in the lead compared to the first five months of the previous fiscal year.
The cost of imports during the first five months of FY23 was $35.49 billion, compared to $32.94 billion over the same time of the previous fiscal year.
As such, the import cost is still about 8% higher Year-on-Year (YOY).
A total of 56.5 million tons of goods have been imported in the first five months of the current fiscal year, which was 53.1 million tons during the same period of the previous fiscal year.
Therefore, imported commodities increased by 6.4% throughout this time.
BB relaxes LC requirements for Ramadan
In order to maintain their prices at a reasonable level throughout Ramadan and ensure seamless supply, the central bank urged banks to accept a minimal cash advance from importers when opening LCs for essential commodities on December 11.
The import facility will be extended to importers of eight commodities—edible oil, gram, lentil, onion, sugar, peas, spices, and dates—with a minimal LC margin.
The instruction came a week after the Commerce Ministry recommended that the central bank set up a crisis management unit to make it easier to establish Letters of Credit for the import of essential goods before Ramadan, when there is a spike in demand for them.
In that meeting, the country's general business and investment position was discussed by the Commerce Secretary Tapan Kanti Ghosh.
To keep the market well-stocked throughout Ramadan, according to his keynote presentation, Bangladesh will have to spend $2.5 billion on imports of grains, lentils (masur dal), dates, crude soybean oil, palm oil, sugar, and wheat.
Of the total, $812 million will be used to buy 22.19,000 tons of wheat, $974 million to import 71,000 tons of edible oil, and $385 million to import 81,000 tons of sugar.
The import costs of grams, dates, and lentils for the upcoming Ramadan have been estimated at $134.49 million, $52.67 million, and $140.64 million respectively, according to a report of the Commerce Ministry.
The reserves fell from $39.60 billion in July to $33.92 billion on December 7.