#Title

Imports thru land ports fell 13% in FY23

Experts point to lower trade with India due to US dollar crisis
JAGARAN CHAKMA
Imports through land ports in Bangladesh, particularly those from neighbouring India, declined by more than 13 percent year-on-year in fiscal 2022-23 due to a prevailing US dollar crisis in the country.
As per data of the Bangladesh Land Port Authority (BLPA), about 1.74 crore tonnes of goods were imported through 15 land ports across the country in the previous fiscal year (FY).
This was the steepest fall in imports through land ports in the last three fiscal years, BLPA data shows.
Of the total imports, just 1.99 lakh tonnes of goods came from Myanmar through the Teknaf land port in Cox’s Bazar while India accounted for the rest.
On the other hand, exports from Bangladesh increased 6 percent year-on-year to around 13 lakh tonnes.
Burimari land port In Lalmonirhat registered the highest import volume of about 30.4 lakh tonnes that year while Benapole land port in Jashore saw the second highest with around 20.6 lakh tonnes.
Bangladesh’s imports from India through land ports mainly consist of capital machinery, intermediate goods, consumer goods, yarn, cotton and chemical products.
Foodstuff, such as onion, garlic, potato and turmeric, are also imported from the neighbouring nation.
According to data of the India Brand Equity Foundation, India is Bangladesh’s biggest trading partner in the subcontinent and second biggest sourcing destination, accounting for 12 percent of its total imports.
However, the import volume edged down to $14.22 billion in FY23 while it was $16.15 billion previously.
Meanwhile, Bangladesh exported goods worth $2.12 billion to India that year.
As a result, the number of goods-laden trucks arriving from India through local land ports slowed in the last fiscal year, reaching 706,345 units compared to 731,470 previously.
Mosammat Faizunnaher, deputy director of traffic at the BLPA, said the ongoing US dollar shortage and subsequent restrictions on non-essential imports are the main reasons for reduced imports from India.
She also pointed out that another reason for reduced imports through land ports might be a decline in shipments of stone chips from India in FY23.
Abdul Matlub Ahmad, president of the India-Bangladesh Chamber of Commerce and Industry, said imports from India mainly fell for difficulties in opening letters of credit (LC) amid the US dollar crisis.
For example, businesspeople are now required to pay 100 percent margins for importing any goods.
So, small entrepreneurs are struggling to open LCs in a timely manner due to the country’s lack of foreign currency, including the Indian rupee, he added.
Besides, India has banned the export of some products while Bangladesh is also discouraging imports of non-essential items.
“For these reasons, imports from India were reduced in the last fiscal year,” said Ahmad, also a former president of the Federation of Bangladesh Chambers of Commerce and Industry.
ASM Raihan Kabir Rigan, proprietor of Zuhaina Enterprise in Lalmonirhat, said he has been involved in importing stone chips through Burimari land port for more than a decade.
Rigan informed that while he imported about 4,000 tonnes of stone chips each month in the past, the volume has reduced to some 1,000 tonnes at present for difficulties in opening LCs.
He alleged that banks require a 110 percent margin for opening an LC and then pay back the additional 10 percent after settling the contract.
Rigan added that banks are taking Tk 137.50 (with 100 percent margin) for each US dollar, resulting in higher import costs.
Ferdaus Ara Begum, chief executive officer of Business Initiative Leading Development, said imports are being restricted to stop the decline in foreign exchange reserves and encourage import of basic supplies.
She also informed that some development projects are being filtered, resulting in a significant drop in the import of construction items.