Trade deficit widens in Apr
Monday, 21 June 2010
FE Report
The country's overall trade deficit widened in April due mainly to price hike of essential items in the global market along with higher food grains imports, officials said.
The trade deficit increased by US$11 million to $4.501 billion in July-April period of fiscal 2009-10 (FY10) from $4.490 billion during the same period of the previous fiscal, according to the central bank statistics.
"Higher food grain imports as well as rising trend in prices of essential items in the global market have pushed the trade deficit widened," a senior official of the Bangladesh Bank (BB) told the FE Saturday.
Food grains import stood at 3.160 million tonnes during the July-May period of this fiscal compared to 2.952 million tonnes during the corresponding period of the previous fiscal.
The BB official also said the rising trend in prices of essential commodities including food grains and oil may continue in the near future due to recovery of major economies from the global meltdown and restoration of confidence of the country's business community.
"The government's budgetary expenditures will increase in the next fiscal for implementation of hundreds of development projects across the country, which would also push the trade deficit further," the official added.
During the period, export earnings stood at $12.965 billion against the payment of import bills of $17.466 billion, the BB's data showed.
Bankers, however, said the prices of essentials including scrap vessels and edible oil have increased recently in the international market to meet the growing demand of the commodities globally.
"The prices of scrap vessels have crossed $500 per tonne in the global market recently against $420 million a few months back," senior official of a private commercial bank told the FE.
He also said the prices of edible oil have substantially increased in the recent months.
The country's food grains output target has been fixed at 35.051 million tonnes during FY10 while the actual production of food grains was 32.166 million tonnes in the previous fiscal.
However, stock of food grains with the government stood at 724,000 tonnes at the end of May, 2010 compared to 977,000 tonnes towards the end of May, 2009, according to official figures.
The country's overall trade deficit widened in April due mainly to price hike of essential items in the global market along with higher food grains imports, officials said.
The trade deficit increased by US$11 million to $4.501 billion in July-April period of fiscal 2009-10 (FY10) from $4.490 billion during the same period of the previous fiscal, according to the central bank statistics.
"Higher food grain imports as well as rising trend in prices of essential items in the global market have pushed the trade deficit widened," a senior official of the Bangladesh Bank (BB) told the FE Saturday.
Food grains import stood at 3.160 million tonnes during the July-May period of this fiscal compared to 2.952 million tonnes during the corresponding period of the previous fiscal.
The BB official also said the rising trend in prices of essential commodities including food grains and oil may continue in the near future due to recovery of major economies from the global meltdown and restoration of confidence of the country's business community.
"The government's budgetary expenditures will increase in the next fiscal for implementation of hundreds of development projects across the country, which would also push the trade deficit further," the official added.
During the period, export earnings stood at $12.965 billion against the payment of import bills of $17.466 billion, the BB's data showed.
Bankers, however, said the prices of essentials including scrap vessels and edible oil have increased recently in the international market to meet the growing demand of the commodities globally.
"The prices of scrap vessels have crossed $500 per tonne in the global market recently against $420 million a few months back," senior official of a private commercial bank told the FE.
He also said the prices of edible oil have substantially increased in the recent months.
The country's food grains output target has been fixed at 35.051 million tonnes during FY10 while the actual production of food grains was 32.166 million tonnes in the previous fiscal.
However, stock of food grains with the government stood at 724,000 tonnes at the end of May, 2010 compared to 977,000 tonnes towards the end of May, 2009, according to official figures.