Traders out to spike prices during Ramadan: NSI
Wednesday, 25 May 2011
Syful Islam
The National Security Intelligence (NSI) has said it fears a price spike in the month of Ramadan after its agents found traders "deliberately slowing down import" in an attempt to raise food prices. The agency cautioned the prime minister's office (PMO) last week and sought immediate intervention by the commerce ministry to avert a possible volatile situation during the Muslim holy month. "The importers have reduced commodity import drastically, which is one of their techniques to make the market volatile," the NSI said in a report, a copy of which was seen by the FE. According to the report, commercial banks were not lending traders in line with the 12 per cent interest rate fixed by the Bangladesh Bank to import essential items including sugar, edible oil, onion and gram. "Besides, the Trading Corporation of Bangladesh (TCB) has failed to open LCs in time to import commodities as it faces an acute crisis of fund," it said. The report said: "Unless the import impediments are removed immediately, the food supply may face a shortfall and the price of commodities may go out of control during the month of Ramadan." It said demand of cooking oil, sugar, onion and gram shoots up by 20 to 25 per cent during the holy month, as Muslims prefer to break their fast with snacks and sweets. The monthly demand of edible oil is 0.15 million to 0.2 million tonnes, sugar 0.2 million tonnes to 0.25 million tonnes, onion 0.13 million tonnes to 0.15 million tonnes, and gram 0.050 million to 0.055 million tonnes. Citing an example, the NSI said import of edible oil has slowed down since January this year. "And in the first 11 days of this month, the value of LCs for importing edible oil is almost zero," it said. The intelligence report said businesses, importers, mill owners, and wholesale businessmen have joined forces to re-introduce the recently-scrapped DO system by creating pressure on the government. The government banned the controversial marketing system last month, saying it creates price volatility and is used by a group of rogue traders to manipulate food markets.
The National Security Intelligence (NSI) has said it fears a price spike in the month of Ramadan after its agents found traders "deliberately slowing down import" in an attempt to raise food prices. The agency cautioned the prime minister's office (PMO) last week and sought immediate intervention by the commerce ministry to avert a possible volatile situation during the Muslim holy month. "The importers have reduced commodity import drastically, which is one of their techniques to make the market volatile," the NSI said in a report, a copy of which was seen by the FE. According to the report, commercial banks were not lending traders in line with the 12 per cent interest rate fixed by the Bangladesh Bank to import essential items including sugar, edible oil, onion and gram. "Besides, the Trading Corporation of Bangladesh (TCB) has failed to open LCs in time to import commodities as it faces an acute crisis of fund," it said. The report said: "Unless the import impediments are removed immediately, the food supply may face a shortfall and the price of commodities may go out of control during the month of Ramadan." It said demand of cooking oil, sugar, onion and gram shoots up by 20 to 25 per cent during the holy month, as Muslims prefer to break their fast with snacks and sweets. The monthly demand of edible oil is 0.15 million to 0.2 million tonnes, sugar 0.2 million tonnes to 0.25 million tonnes, onion 0.13 million tonnes to 0.15 million tonnes, and gram 0.050 million to 0.055 million tonnes. Citing an example, the NSI said import of edible oil has slowed down since January this year. "And in the first 11 days of this month, the value of LCs for importing edible oil is almost zero," it said. The intelligence report said businesses, importers, mill owners, and wholesale businessmen have joined forces to re-introduce the recently-scrapped DO system by creating pressure on the government. The government banned the controversial marketing system last month, saying it creates price volatility and is used by a group of rogue traders to manipulate food markets.