BB asks banks to help fertiliser importers in opening LCs

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FE Report
The Bangladesh Bank (BB) asked the commercial banks Wednesday to provide all-out cooperation to the fertiliser importers to ensure smooth supply of the agricultural inputs during the coming Boro season.
"We have asked the banks to help traders open letters of credit (LCs) for importing phosphates and muriate of potash on the basis of bank-client relationship," a BB senior official told the FE Wednesday.
Three types of chemical fertilisers are usually imported from different countries, including the USA, China, Tunisia and Australia to meet the growing local demand, market sources said.
The imported fertilisers are: triple super phosphate (TSP), di-ammonium phosphate (DAP) and muriate of potash (MoP).
The central bank took the move after the recent floods destroyed crops in the fields across the country.
"The central bank has issued letters to all commercial banks in this connection in line with the government advice," the BB official added.
He also said the measure will help keep supply of chemical fertilisers stable during the Boro season.
The Bangladesh Fertiliser Association (BFA), the apex body of the country's fertiliser traders and dealers, has also urged the banks to extend their cooperation in opening LCs for importing such agricultural inputs.
"The banks concerned should facilitate opening of LCs for importing such chemical fertilisers to ensure smooth supply of the agricultural inputs in the next Rabi-Boro season," Chairman of the BFA Kafil Uddin told the FE.