FBCCI demands BB's market intervention to rein in prices

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FE Report
The country's apex trade body demanded Tuesday intervention by the central bank in the market in a bid to rein in prices of essentials during the holy month of Ramadan.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has also put forward a set of recommendations saying their implementation will help lower the prices of the essentials.
"We think the central bank's intervention in some matters like exchange rate of dollar, L/C (letter of credit) margin and commission, and removing complications relating to the KYC (know your client) form is required," FBCCI president Mir Nasir Hossain.
The FBCCI president made the observation, after a meeting with the leaders of the different trade bodies, at a press conference in the city at the federation Bhaban.
The importers should be allowed to buy dollar at a competitive price from any bank, he said, adding the exchange rate should be quoted on the day of opening of LCs against imports.
He said the business community held the view that the government should also urgently import food grains and observe international market price on a regular basis.
Nasir said unnecessary quarries made by the banks at the time of withdrawal and deposit of money create panic among the businessmen.
The FBCCI president ruled out the existence of syndicates in the market saying theoretically, in open market economy there is no room for forming a cartel.
When asked, he admitted that though the import in terms of money compared to last year increased from Tk 15 billion to Tk 17 billion the quantity was lower than that of the previous year.
He said prices of the essentials increased as the same rose in international market by 40-115 per cent.
However, he welcomed the government's decision on fixation of 12 per cent interest on import credit relating to ten commodities and recommended on behalf of the for further lowering the rate to 10 per cent.
The apex trade body believes the prices of the edible oil will come down if the value added tax (VAT) is withdrawn.
The FBCCI president called upon the businessmen to follow the guideline relating to prices of the edible oil fixed during a meeting with the BDR.
About an allegation of charging higher prices by suppliers beyond the rate fixed out the meeting with BDR, MA Rouf Chowdhury, director of FBCCI and president of Refiners and Vanaspati Manufacturers Association, said: "The retailers and not suppliers are responsible for charging higher prices at retail level."
However, the FBCCI stressed the need for pragmatic steps of the government with regards to the definition of hoarding of commodities in order to help the businessmen avoid harassment.
Apart from this, FBCCI recommended recasting of entire marketing system to help the growers and small entrepreneurs to easily market their commodities.
The FBCCI also recommended to keep open land ports in all days of the week.
It said the government should stop assessing income tax taking 10 per cent as gross profit, which it termed as unrealistic.