'Wrong' govt data, unending LC crisis hurting commodity market: Businesses

Shedding doubt on the government's statistics on the production of daily essentials, business leaders complained that they are still unable to open letters of credit (LCs) according to the demand for import of commodities.

At a discussion meeting among business leaders of different sectors regarding stabilising the supply chain of daily necessities to keep prices tamed ahead of Ramadan, Ishtiaq Ahmed, senior vice president of the Bangladesh Cold Storage Association, pointed out the discrepancy between the data given and ground reality.

The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) organised the meeting at its office in the capital today.

Ishtiaq said government data shows the annual demand for potatoes in Bangladesh is 90 lakh tonnes. But, potato production this year stands at 1.12 crore tonnes, which should result in a surplus of 22 lakh tonnes. But that is not the case.

Claiming that this was happening due to wrong data, he said according to the amount kept in cold storage, the total production should not be above 80 lakh tonnes.

Ishtiaq also said the official figures for potato demand in the country were also wrong.

Helal Uddin, president of the Bangladesh Shop Owners Association, said ministries responsible for different essentials always inform the government that they are self-sufficient. But this was often misinformation.

"That is why we want a ministry on consumer goods. We want to be able to speak in one place instead of going in different directions," he said.

Helal also called on the government to come up with accurate statistics on commodity production, control dollar market volatility, find solutions to tax and VAT issues, and establish an effective market monitoring system.

Amitabh Chakraborty, president of the Edible Oil Mill Owners' Association and consultant of City Group, said "A certain amount of dollars should be kept aside for consumer goods imports." He also demanded uninterrupted gas supply to industries struggling to maintain output.

Bikash Chandra Saha, vice-president of the Bangladesh Pulse and Lentil Crushing Mills Owners' Association, said, "Because of the difficulty in LC opening, many small importers in this sector are bowing out, leaving only big traders in the game. This trend is driving up the prices of chickpeas and split peas in the market."

Golam Mawla, president of the Bangladesh Wholesale Edible Oil Traders Association, said "The demand for edible oil doubles during Ramadan. However, we do not have any statistics on the actual demand, which makes it even harder to maintain stability when a crisis of edible oil emerges."

He complained of steps being taken to completely remove loose oil from the market on the pretext of food safety, and reminded that many people are involved in this business.

"There is another problem with liquefied petroleum gas (LPG) imports. Restaurants require a lot of LPG to operate. We need urgent policy support," said Imran Hasan, secretary general of Bangladesh Restaurant Owners' Association.

He said policy should be determined by traders, not by bureaucrats.

Imran proposed importing cattle, saying it would make it possible to reduce beef prices even further to Tk400 a kg. "However, big businessmen in our country have set up cattle farms. So, imports will not be possible," he said.

Sirajul Islam, president of the Fresh Fruit Importers' Association, said the demand for dates is high in Ramadan but there is still uncertainty surrounding the import of dates this time.

"It takes two months to import dates from Tunisia or Algeria in frozen containers. But the duty on dates has been increased several-fold, making things more difficult for importers," he said.

During Ramadan, the demand for certain vegetables such as brinjal, green chilli, and cucumber skyrockets, often increasing by as much as 20 times. Unfortunately, some unscrupulous traders take advantage of this surge in demand by engaging in monopolistic practices, said Imran Master, president of the Bangladesh Kanchamal Arot Malik Samity.

Accountability, however, remains a challenge as numerous traders across markets operate outside the association's purview, he added.

Nurul Kabir, president of the Bangladesh Salt Mill Owners' Association, said, "Salt production commenced a month ago. While weather fluctuations have caused minor disruptions, we currently hold a one-month stockpile. Favourable weather conditions would undoubtedly lead to increased production."

Kabir, however, suggested a proactive approach. "To ensure ample supply during potential emergencies, a one-month supplementary import of salt could be considered."

Unethical practices unacceptable: FBCCI

"Unethical practices in the market are unacceptable and create unnecessary turmoil," said FBCCI President Mahbubul Alam at the meeting.

"We, at the FBCCI, firmly stand against such individuals and their actions. We refuse to tolerate any whispers of trader dishonesty or market manipulation. Our focus is on fostering a vibrant and trustworthy business environment where traders can operate freely and ethically. Should any issues arise, we will seek constructive solutions without tarnishing the reputation of the entire community," he said.

"We have carefully listened to the concerns of our traders, specifically, the complexities surrounding LC opening. We are already in talks with stakeholders to address this issue," Mahbubul Alam said, adding that effective coordination among all market-related ministries is important.

"Let us safeguard against any attempts to artificially inflate prices, be it for green coconuts, onions, or beef. We have to be vigilant that such practices do not recur," the FBCCI president added.

Ethical business practises crucial: Authorities

Mahmudul Hasan, deputy director of the Bangladesh Trade and Tariff Commission, lauded the businessmen for speaking positively about issues in today's meeting.

He also noted how their positive feedback would make the commission's work easier. "There will be no major crisis in the market if businessmen work with a positive mindset."

Abdul Jabbar Mandal, assistant director at the Directorate of National Consumer Rights Protection, emphasised the importance of ethical business practices among traders. 

He stressed that prioritising consumer protection, and ensuring they are not deceived in any way, would render extensive raids unnecessary.