The government has decided to ease border trade with Myanmar ahead of the Muslim holy month of Ramadan, allowing traders to import basic food items worth upto US$20,000 in a single consignment, officials said Saturday.
Traders were previously allowed to import food items worth upto $10,000 in a single consignment through the Teknaf land port, as global sanctions have almost frozen formal trade with the Myanmar junta.
But last week the caretaker government ignored the increasing pressure on Myanmar's military regime by deciding to double the import limit for seven basic food items--- rice, wheat, maize, soyabean oil, palm oil, onion and fish.
"We took the decision to increase supply of basic food items ahead of the Ramadan. The prices of these items are still cheap in Myanmar and their increased imports would make positive impact in our market," said a senior commerce ministry official.
"The ministry of commerce will issue an order doubling the import limit later this week. The order will be issued after amending the existing import policy," he said.
Bangladesh usually imports food grains and fish from Myanmar and exports medicines, fertilizers and electronics items-all carried out through spot trade at the Teknaf land port.
Commerce Secretary Feroz Ahmed confirmed the decision, saying the country's southeastern neighbours have emerged as "a very important source of import."
"There are some problems in carrying out formal trade with Myanmar, particularly opening of letter of credits for import of rice. The government has therefore decided to relax rules to increase more import through border trade," he said.
Currently traders have to import products from Myanmar through third country, mainly Singapore, as sanctions imposed by the United States and European Union have almost shut the door on the once prosperous but increasingly isolated south-east Asian nation.
Importers have to pay through telegraphic transfer (TT) advance system via Singapore due to difficulties in banking transactions.
The latest decision is seen as a desperate move by the caretaker government as it has been struggling to find alternative source of food grain import following export curbs imposed by major producers such as India, Thailand, Vietnam and China.
