The Bangladesh Bank has allowed importers to make deferred payments for up to 90 days for imports of 10 essential commodities ahead of the holy month of Ramadan to ensure adequate supplies and keep prices stable in the market.
The Foreign Exchange Policy Department-1 of Bangladesh Bank issued a circular in this regard Wednesday.
Under the new directive, the facility will cover imports of rice, wheat (flour), onion, lentils, edible oil, sugar, chickpeas, peas, spices and dates.
Importers can bring in these commodities under suppliers’ credit or buyers’ credit arrangements and pay for the imports within a maximum of 90 days after receiving the goods.
Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan said the initiative aims to keep the prices of commodities that experience higher demand during Ramadan within the purchasing capacity of ordinary consumers.
He said the central bank had given banks the opportunity to facilitate imports under buyers’ or suppliers’ credit for up to 90 days so that importers could take advance steps to bring in adequate supplies.
“Importers will be able to pay for the imported goods after 90 days,” he said.
Khan said Bangladesh Bank did not want consumers to face additional pressure from rising commodity prices during Ramadan. The circular aims to ensure that people can purchase essential goods at relatively affordable prices, he added.
He also said any mismatch between supply and demand could push up commodity prices. Allowing imports ahead of Ramadan would help importers bring in sufficient quantities of goods, prevent shortages and ease upward pressure on prices.
According to the Bangladesh Bank circular, the facility has been introduced for commercial imports to maintain the normal supply of essential food commodities during Ramadan and keep prices at tolerable levels.
Importers will not have to pay the full import value immediately and can settle the payment within 90 days.
The circular said an earlier directive, FEPD-1 Circular No. 30, issued on August 13, had allowed deferred-payment imports of certain commodities under Part-D, paragraph 1(1).
The latest decision expands the facility to cover additional important food commodities ahead of Ramadan.
Other instructions under the previous circular will remain unchanged. Bangladesh Bank has also instructed authorized dealer banks to inform their respective clients about the new directive.