Commodity prices to remain stable in Ramadan: Tariff commission
The Bangladesh Trade and Tariff Commission (BTTC) has projected that the country's commodity market will remain stable during the upcoming Ramadan, thanks to a combination of declining international prices and government initiatives to curb inflation.
The BTTC recently submitted its findings in a report to the Ministry of Commerce.
The report indicates a favourable market outlook, attributing the stability to a downward trend in global prices of essential goods, energy, and raw materials.
Additionally, the government’s steps to ensure a steady supply and control costs are expected to help maintain affordability during the holy month.
Key findings of the report
Commodity imports remain normal: The BTTC observed that Bangladesh’s import situation for essential goods is stable. Consumers are likely to find essential items at lower prices compared to last year.
Global trends favour lower prices: According to World Bank data cited in the report, international prices for energy, food, and non-energy commodities have been decreasing since December 2024, with only a few exceptions, such as rice, corn, and barley. The potential resolution of the Russia-Ukraine war may further stabilise global supply chains, benefiting Bangladesh’s import-dependent commodities.
Edible oil prices likely to drop: With international edible oil prices on a decline and reductions in customs duties and taxes on imports, local prices for edible oil are expected to decrease during Ramadan.
Rice market expected to stabilise: To address reduced local production, the government has waived all customs duties on rice imports. Licenses for the import of 475,000 tonnes of rice have been issued, which is expected to ease the market.
Lower prices for dates and lentils: Customs duty reductions and rationalized import values for lentils and dates have encouraged higher imports, enabling consumers to access these items at lower prices during Ramadan.
Recommendations and concerns
While the report provides an optimistic outlook, it highlights a few areas requiring close monitoring:
Currency management: The BTTC stressed the importance of maintaining a stable foreign exchange rate to cover import costs. It suggested that the Bangladesh Bank take measures to ensure stability.
Local market oversight: Prices of lentils and chickpeas, which have risen internationally, need close monitoring to ensure adequate stock and supply in the local market.
Fiscal discipline: The report noted the importance of aligning revenue and monetary policies to support market stability.
The analysis, however, did not take into account the recent increases in VAT, supplementary duty, and customs duty on over 100 products, which could affect market dynamics.
The government, along with the Bangladesh Bank and other stakeholders, is expected to take proactive measures to ensure a smooth Ramadan shopping experience for consumers.
