Edible oil traders have proposed a Tk15 per litre price increase ahead of Ramadan, citing rising international raw material and transportation costs, while date importers have sought duty relief to keep supplies affordable.
The proposals came at a meeting with Commerce Minister Khandaker Abdul Muktadir on 26 October to review import preparations, supply constraints and prices of essential commodities ahead of Ramadan.
The ministry did not decide on the oil price hike but said it would discuss date duty relief with the National Board of Revenue (NBR). Dates currently face around 55% in duties and taxes, importers said, adding that Middle East instability has complicated transportation and raised freight costs.
The meeting was attended by traders and representatives of the Bangladesh Trade and Tariff Commission, NBR, Trading Corporation of Bangladesh (TCB), Directorate of National Consumer Rights Protection (DNCRP), Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), police, Directorate General of Forces Intelligence (DGFI) and National Security Intelligence (NSI).
A senior Commerce Ministry official said demand for edible oil, sugar, lentils, chickpeas, dates, chicken and eggs typically doubles or more during Ramadan. The meeting aimed to assess import preparations and address obstacles to maintaining supplies and stable prices.
Imports rise ahead of Ramadan
Between 1 July and 25 October, edible oil imports rose to 823,000 tonnes from 705,000 tonnes a year earlier, while letters of credit (LCs) were opened for 805,000 tonnes, up 131,000 tonnes year-on-year.
Soybean seed imports reached 501,000 tonnes, up 113,000 tonnes. Sugar imports increased by 153,000 tonnes to 687,000 tonnes, with LCs opened for 810,000 tonnes.
Chickpea imports rose to 82,000 tonnes from 12,000 tonnes, with LCs for 138,000 tonnes. Lentil imports reached 122,000 tonnes, up 64,000 tonnes, while LCs covered 114,000 tonnes. Date imports increased to 11,000 tonnes from 4,000 tonnes.
The ministry urged traders to import on time and ensure market supplies, pledging support while warning against hoarding and market manipulation.
Traders flag pressure on small lentil mills
Haji Nesar Uddin, president of the Bangladesh Pulses Traders Association, said traders had assured the ministry they were prepared to maintain normal business and keep chickpea and lentil prices stable.
“But the problem lies elsewhere. Chickpeas are entirely import-dependent, while around 80% of lentil demand must be met through imports. Ordinary lentil mills can no longer operate because of large traders. The Commerce Ministry needs to understand this,” he told The Business Standard.
Md Nurul Islam Molla, secretary of the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association, declined to comment on the meeting.
Poultry sector expects stable supplies
Poultry representatives said egg and chicken production remains normal, with no major shortages expected as farm disease outbreaks remained limited.
Farm-level egg prices had fallen from Tk11.50 a piece a few days earlier to below Tk10, close to production costs. They expect egg demand to dip slightly during Ramadan as breakfast habits change, while chicken demand could rise after Eid, affecting prices.
Under the existing import policy, eggs and meat cannot be imported without special government permission.
Commerce Ministry to push for simpler date duty structure
The commerce minister called for a transparent, rational duty structure reflecting differences in date varieties, quality and prices. Bangladesh imports dates of varying quality from around a dozen countries, including Egypt, Saudi Arabia, Iraq and Algeria; applying uniform valuations could create complications, he said.
Although the NBR determines duties, coordination among agencies is needed. The meeting discussed implementing existing date duty concessions without delay, and officials said internal preparations were complete.
Importers proposed basing duties on actual quality and prices rather than fixed reference values, saying valuations that exceed the actual prices of ordinary-grade dates raise duties and overall import costs. Middle East instability, alternative routes, higher logistics costs and difficulties opening LCs could further disrupt supplies.
They also sought more flexible fruit-import taxes, arguing high duties make produce less affordable. Authorities pledged to address their concerns.
Global prices and Ramadan demand
The Bangladesh Trade and Tariff Commission found international prices of edible oil and chickpeas had edged up, while lentil prices had fallen.
It recommended monitoring global prices, import costs and domestic supplies. Chickpeas and lentils currently face no import duties or taxes, while rational adjustments to sugar and fruit duties could help contain prices. Fresh fruit prices in the local market had also declined slightly.
Demand for sugar peaks during Ramadan as households prepare drinks, sweets and iftar dishes, reaching nearly 300,000 tonnes. Soybean and palm oil consumption rises for fried snacks, while lentils are used for piyaju, beguni, lentil fritters and sehri meals. Smaller-grain, higher-quality lentils are particularly sought after.
Chickpeas and dates also account for a substantial share of annual consumption during Ramadan. All these commodities, except chicken and eggs, depend on imports to meet domestic demand, although eggs may also need to be imported at times. Ensuring adequate supplies during the seasonal surge is crucial to keeping prices stable.
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