MoU likely with Ukraine to import essentials

The government is likely to initiate a move to enhance imports of some key commodities that will be locally marketed through the Trading Corporation of Bangladesh (TCB).

The authorities have expressed the hope that such import would help keep the price of essentials stable in domestic market, official said.

The government is expected to import some essential items from Ukraine under a government to government (G2G) arrangement and a memorandum of understanding (MoU) in this regard will be signed shortly with Ukraine's state entity SPECAGRO. The MoU will be for five years, said officials.

Earlier, an identical initiative was taken to sign an MoU with Indian government which is now almost final stage. Under the deal, the TCB will import onion, pulse, sugar, ginger, garlic, spices and other essentials from neighbouring country.

"The government is going to take some effective measures for containing high prices and ensuring smooth supply of essentials in the domestic market. Some of these measures are already on and many more will be undertaken in the next few months," a high official of the ministry of commerce (MoC) told the FE.

The moves are mainly to give relief to consumers in terms of prices of essentials, he said.

The MoC sources said the government was taking measures to reduce the possibility of sudden price hike in the country.

The TCB has prepared a draft of the MoU for Ukraine which will be finalized after getting the nod from the government. Besides, a high powered two member team is likely to go to Ukraine to make an on-the-spot study in this connection, a TCB letter said.

Recently, the SPECAGRO has shown interest to export essentials items in Bangladesh. The Ukrainian trade body sent a request letter to the TCB in this connection.

Under the deal, milk powder, sugar and sunflower oil will be imported from the country (Ukraine). The payment will be in US dollars.

"Both countries agree to provide such current market information and business contacts to each other upon request," according to article 3 of the MoU.

Under the upcoming deal, "The parties will contribute to conduct and develop economic cooperation in the sphere of agricultural products to the mutual benefit of their respective countries."

The parties (Ukraine-Bangladesh) will exchange trade enquires from their respective home markets under the proposed deal.