The demand for essential goods has increased ahead of the upcoming Ramadan, prompting a rise in imports. Over the last six months, the volume of imports has been sufficient to meet demand during Ramadan, with products arriving ahead of time due to a surge in letters of credit (LCs) following the withdrawal of duties. However, consumers are not benefiting from the reduced prices as expected. Many products are still priced high in both wholesale and retail markets.

Previously, only large corporate houses imported essential goods, but now, medium-sized businesses that were previously struggling in the competitive market have become active in imports. These businesses are now collaborating to place LCs, breaking the monopoly of large corporations. The removal of import duties has led to a significant increase in LCs at commercial banks.

To support Ramadan demand, Bangladesh Bank has relaxed the LC margin for 11 essential products, including rice, wheat, onions, lentils, cooking oil, sugar, eggs, chickpeas, peas, spices, and dates, until March 31, 2025. The relaxation is based on the transparency of the bank-customer relationship.

Between October 1 and December 23, 2024, Chittagong importers issued 452 LCs for essential goods, including wheat (75,106 metric tons), dates (35,546 tons), chickpeas (35,546 tons), soybean (31,143 tons), palm oil (158,933 tons), lentils (1,050 tons), and sugar (8,943 tons). A significant quantity of these goods has already arrived in the country.

According to officials at the Chittagong Plant Quarantine Center, the clearance process for imports has been expedited, with more goods arriving compared to November. Due to the increase in imports, the supply of goods in the market has risen, leading to a reduction in prices. However, retail prices remain high, and some goods are still being sold at pre-duty removal prices. In order to pass the benefits of duty withdrawal to consumers, stricter market monitoring will be necessary moving forward.