Bangladesh: Imports rise by 14.93pc in 11 months

Dhaka, July 6, 2014 (New Age): The country’s imports increased by 14.93 per cent in the first 11 months of the current financial year 2013-14 compared with that of a negative growth of 9.09 per cent in the corresponding period of the FY13 due mainly to rise in imports of food products. According to the latest Bangladesh Bank data, settlement of letters of credit, or generally known as actual imports, stood at $33.88 billion in July-May of the FY14 against that of $29.48 billion in the same period of the FY13. BB officials said mainly higher import of food grains ahead of Ramadan pushed up the overall imports in the first 11 months of the FY14. Ramadan, fasting month for the Muslims, began on Tuesday. LC opening, or generally known as import orders, in the first 11 months of the FY14 also posted a growth of 13.30 per cent compared with that of a negative growth of 1.53 per cent in the same period of the FY13. LCs worth $37.52 billion were opened in July-May of the FY14 against LCs worth $33.11 billion opened in the same period of the FY13. The BB data showed that import of rice and wheat registered 125.84 per cent growth in July-May of the FY14 compared with that of a negative growth of 30.49 per cent in the same period of the FY13. Settlement of LCs in the first 11 months of the current financial year for rice and wheat was worth $1.31 billion against $580.40 million during the same period of the FY13. A BB official told New Age on Thursday that fall in food product prices including rice and wheat prices on the global market was one of the key reasons for the jump in the country’s import of the two products in the period. The rise in the rice prices on the local market also encouraged the importers, he said. He said that appreciation of the local currency against the US dollar also prompted the importers to import the essential items more to meet the growing demand. The BB official said the import of industrial raw materials and capital machinery also increased in the first 11 months of the FY14 as the businesspeople were now importing the products due to an eased situation on the political front. The political unrest slightly relaxed in the last few months that encouraged the businesspeople to import the two products although political uncertainty is still persisting in the country, the central banker said. The imports of industrial raw materials and capital machinery increased by 12.53 per cent and 16.96 per cent to $13.50 billion and $2.28 billion respectively in July-May of the FY14 from $12.00 billion and $1.95 billion in the same period of the FY13, the BB data showed. The BB data showed that import of petroleum products also registered a 3.64-per cent growth in July-May of the FY14 compared with that of a negative growth of 9.06 per cent in the same period of the FY13. Settlement of LCs in the first 11 months of the current financial year for petroleum products was worth $4.07 billion against $3.93 billion during the same period of the FY13.