Imports surge by 40pc in first two weeks of Nov

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Shakhawat Hossain
The country's import surged by nearly 40 per cent in the first two weeks of the current month showing a sign of improvement in business activities, central bank officials said Thursday.
Local businessmen opened letters of credit (LCs) worth US$805 million during November 1-13 period compared to $576 million in the same period last month, according to the Bangladesh Bank (BB).
"The trend shows that a sense of panic that had gripped the private importers is about to go," said BB chief economist Mustafa K Mujeri.
The country's import slumped at $1.341 billion in October, lowest in recent months, as the private importer remained inactive due to fall in the prices of commodities globally.
"Import business is now heading to normalcy, which is expected to continue in the coming months," he said.
A temporary setback, according to the BB officials, has been caused due to falling prices of commodities in the international markets, which raised fears of losses among the businessmen.
With the prices of almost all international commodity items falling by nearly 50 per cent during the last several months local private importers were exposed to financial losses, said another BB official.
The government is also feared supply shortage of essential items such as wheat, edible oil and pulses in the local market due to sluggish import business.
Throughout the last month, LCs worth only $0.99 million were opened for the import of wheat, $53 million for edible oil and $1.8 million for pulses.
But in the first two weeks of the current months, importers opened LCs worth $20 million against the import of wheat, $51 million for edible oil and $3 million for pulses.
The central bank has already relaxed some conditions for settlement of LCs against wheat, edible oil and pulses to encourage the private importers to continue with their business.
The country is largely depended on import to meet the local demand for edible oil while the import of wheat and pulses accounting for 60 to 80 per cent of the local consumption.
The opening of LCs for other items such as onion and scrap vessel has also risen during the period.
LCs worth $11 million were opened against the import of Onion and $70 million for scrap vessel in the first two weeks of the current month. The importers opened LCs worth $ 9.9 million for Onion and $42 million for scrap vessel throughout the last month.