The imports of food grains and consumer goods in Bangladesh have dropped significantly, raising concerns among stakeholders about potential price hikes for these items during the upcoming holy month of Ramadan.

Items, such as chickpeas, dates, edible oil, lentils, onions, and sugar, which are heavily consumed during Ramadan, are typically imported three to four months in advance. This year, however, has seen a deviation from that practice.

According to the latest data from the Bangladesh Bank, the import of intermediate goods achieved a 6.19% growth in July-October of the fiscal year 2024-25 on a year-on-year basis.

However, the import of capital goods, food grains, and consumer goods declined by 14.30%, 7.58%, and 1%, respectively, during the same period compared to those in the corresponding period last fiscal year.

Food grain imports witnessed a significant decline of 7.58%, amounting to a monetary value of $37.60 million, during July-October of FY25 compared to the same period in the year before.

Of the total food grains, rice imports fell by 7.32%, while wheat imports declined by 7.59%, according to central bank data.

The import of consumer goods decreased by 1% year-on-year, totaling $14.90 million in monetary value, during the July-October period of FY25.

Among these goods, edible oil imports declined by 5.73%, and sugar imports dropped sharply by 35.8% during this period.

Agro-economist and researcher Dr Jahangir Alam Khan told Daily Sun that most essential food items, such as lentils, onion, garlic, ginger, sugar, wheat, edible oil, green chilies, and powdered milk, are import-dependent.

“When the supply of consumer foods and other essentials declines in the market, local traders increase prices. The government should boost the supply of essentials to ensure an uninterrupted flow,” he said.

He also noted that inadequate market management, lack of available data on demand and supply, and the rising value of the dollar are major obstacles to reducing local food prices.

Meanwhile, capital goods imports experienced a steep decline of 14.3% year-on-year, totaling $537 million in monetary value, during July-October of the current fiscal year.

Similarly, imports of capital machinery fell by 25.13%, while other capital goods saw an 8.04% decline during this period.

Among the categories of imported items, intermediate goods held the largest share of custom-based imports during July-October FY25, accounting for 63.14%, followed by capital goods (14.42%), consumer goods (6.60%), and food grains (2.05%).

Despite the government’s early measures to ensure an adequate supply of essential goods and control prices during Ramadan, concerns persist.

Ramadan in Bangladesh is expected to begin in the first week of March 2025, leaving two months to prepare.

To address the situation, the Bangladesh Bank allowed delayed payment of bills for importing 11 essential food items ahead of Ramadan on 11 November last.

These items include rice, wheat, onions, pulses, edible oil, sugar, eggs, chickpeas, peas, spices, and dates.

The central bank stated that this decision aims to facilitate import transactions, and the facility will remain in effect until 31 March 2025.

Additionally, on 6 November, the central bank relaxed the previous 100% margin requirement for importing goods, allowing the margin to be determined based on the customer-bank relationship.

According to industry insiders, this relaxation will require importers to provide less cash upfront, thereby reducing import costs.

Stakeholders urge the government to ensure better market management and adequate supply to stabilise prices and avoid disruptions during the Ramadan.