Economic activities, particularly shopping, are going on in full swing in the middle of Ramadan. Money supply is increasing in the economy. Eid- ul Fitr is the biggest religious festival for the Muslims. Bonus of government officials, employees of shops, garment and textile workers and transport workers will flow into the economy. Huge amount of money will change hands frequently and strengthen the economy.
Businessmen made preparations ahead of Ramadan. Imported food items are now readily available in the markets. Bulk of additional money is spent on new clothing. Markets are ready to meet the needs of children and all categories of buyers. Buying of clothes started in the first week of Ramadan. People go to their village homes towards the end of Ramadan to enjoy Eid holiday. At this time, transportation of goods and home goers increase manifold. This also adds to money supply.
According to Shopowners Association, this year the business community invested double the amount compared to last year. Savings from banks, money kept in houses, loans and funds from mortgaging business establishments-all were invested in Eid-related businesses. In Bashundara shopping complex, investment ranged from Tk 2.0 million to Tk 500 million per shop. There are 25 markets in this area and there are 500 shops.
Islampur is the wholesale market of piece cloths. There are more than 5,000 shops in this area. About 60 per cent of cut cloth is supplied from this area. Jamuna Future Park is a big market for local and imported goods. All brands of garments, shoes, cosmetics, electronic goods or food items are available here. There are huge investments in all the show-rooms.
Polwell Super Market is another big wholesale market for imported goods which are also available in Gazi Super market and City Heart Shopping Centre. Investment exceeded Tk Tk 20 billion in these markets. All kinds of items are sold in New Market, Chadni Chawk and Gowsia markets. Three thousand shops are located in these markets. Their investments vary from Tk 1 million to Tk 500 million. More capital is needed in jewellery, electronics and crokeries. Investments will exceed Tk 20 billion. This was stated by businessmen belonging to associations of these markets.
Footpath market in the capital has also gathered momentum. Such markets are catering to lower and middle income customers. Sales on Friday and Saturday are the highest. Sales are increasing day by day. All kinds of essentials are available in these markets. There are about 1,50,000 shops in 163 kilometres of footpaths. Hawkers are also joining the markets. Shopkeepers are saying that there is a great pressure for giving tolls. They have to keep their shops running after giving tolls to thana, police, local mastans and student leaders belonging to a particular political party.
According to Dhaka City Corporations, its area is 360 square kilometres. Legal footpath is163 kilometres. City Corporations have control over 55 kilometres. The rest 108 kilometres are illegally occupied. About Tk 2500/3000 million is realised as tolls from footpaths. Normally about 250 thousand hawkers do businesses. Another 200 thousand are added during Ramadan. Usually hawkers give tolls to the extent of Tk 100/150 per head.
Eid market is flooded with foreign brands. Most of these items are from India. As a result, demand for local goods has become dampened. Readymade garments from India have captured the market because of design and variety but these are high-priced. Indian goods have arrived through illegal channel with the help of law enforcing agencies. The government too is losing revenue. Buyers are more inclined to low quality Indian goods. The ultra poor are outside the shopping competition. They cannot spend money for Eid.
New bank notes are being sold at high prices. The market for new notes is near the Bangladesh Bank. There is also a big market to sell new notes in Gulistan area. For Tk 1000,Tk 150 is charged. This transaction is operating through strong syndicates. Bangladesh Bank officials and police are allegedly associated with this transaction. Some CBA leaders and those in the bank counter are also believed to be involved in the deal. Bangladesh Bank, however, is not taking any responsibility.
Bangladesh Bank is releasing Tk 300 billion on the occasion of Eid-ul Fitr. Every year new notes are released during Eid. The distribution will continue up to 4th of July. Selling bank notes at a high price is a good business.
The writer is an economist and columnist.
