Inside Economy

Prices of all products including vegetables see sharp hike

Publish: 02:07 PM, 12 Aug, 2022


The sudden increase in fuel price has increased the prices of daily essentials within a week. Traders say that the increase in oil prices has increased the cost of Transportation. As a result, prices of everything from vegetables have increased.

The prices of broiler chickens have gone up to Tk 40 in various markets of the capital on Friday. Although chicken was being sold from Tk 160 to Tk 165 a kg even a week ago. Along with broiler chicken, the price of Pakistani cock up to Tk 300 to Tk 320 per kg, which was Tk 280 to Tk 300 last week.

Regarding the price of chicken, a trader said that the price of broiler chicken was already high. Oil prices rose last week and now those prices have risen further. Wholesale broiler chicken prices are increasing every day. He said that if it continues like this, within a few days, the price of broiler chicken may become Tk 250 per kg.

Along with broiler chickens, the prices of farm chicken eggs have increased unusually. A dozen eggs of farm chickens is now sold at Tk 145 in the market. Meanwhile, each piece of egg is being sold at Tk 13 in grocery stores. A dozen farm eggs costed Tk 120 to 125 a week ago. Besides, the price of all kinds of vegetables has increased. However, the price of green chilies has decreased slightly.

Regarding the increase in the price of eggs, another trader of Karwan Bazar said that the price of chicken has increased abnormally in the last few days. The effect of increase in the price of chicken is falling on the price of eggs.

Looking around the vegetable market, beans are being sold at the highest price in the market. 250 grams of beans are being sold at Tk 50. However, if someone buys one kg, 190 rupees is kept. Last week, 250 grams of beans were sold at Tk 40.

Along with beans, the price of ripe tomatoes has increased. Ripe tomatoes which were sold at Tk 80 to Tk 100 per kg last week are now being sold at Tk 100 to Tk 130. And carrots are being sold at Tk 120 to Tk 130 per kg like last week. Barabati is also being sold at Tk 70 to 80 per kg like last week. However, the price of cucumber has almost doubled. It was sold at Tk 40 to Tk 50 last week and now being sold at Tk 70 to Tk 80.

Besides, brinjal is being sold at Tk 50 to Tk 70 per kg, kakarol at Tk 50 to Tk 70 per kg, raw papaya at Tk 20 to Tk 25 per kg, potol at Tk 40 to Tk 50 per kg. Kachur lati, jinga, chichinga are being sold for 40 to 50 taka per kg. A kg of bitter gourd is being sold at 60 to 80 taka. The price of these vegetables has increased by Tk 10 to Tk 20 per kg within a week.

Regarding the price of vegetables, a trader in Karwan Bazaar said that the price of almost all vegetables has increased compared to last week. The main reason for this is the increase in oil prices. Due to increase in oil prices, the cost of transportation has gone up a lot. Which has affected the price of vegetables. If the price of oil had not increased, the price of all vegetables would have been lower by Tk 10-20 per kg.

Although the prices of eggs, chicken and vegetables have increased, the prices of onions and potatoes have remained unchanged over the week. Onion is being sold at Tk 45 to Tk 50 per kg like last week. A kg of potato is being sold at Tk 30. However, the price of green chillies is being sold at Tk 200 to Tk 220 a kg, which has gone up to Tk 300 last week.

It has been seen in the fish market that a kg of roe fish is being sold at Tk 320 to Tk 450. Tilapia, pangas fish are selling for 160 to 190 taka per kg. Horn fish is selling for 350 to 460 Tk per kg. 200 to 250 taka per kg of fish. A kg of Pabda fish is being sold for Tk 350 to Tk 500. The price of these fish has increased from Tk 10 to Tk 40 per kg within a week.

Hilsa is also on the list of price increase. One kilogram of hilsa is being sold at Tk 1,600 to Tk 1,800, which was Tk 1,200 to Tk 1,300 last week. A kg of hilsa weighing 700-800 grams is being sold at Tk 900 to Tk 1,000, which was Tk 700 to Tk 800 last week. And a kg of hilsa weighing 400-500 grams is being sold at Tk 700 to Tk 800, which was Tk 450 to Tk 500 last week.

Price Hike   Vegetables   Fuel Price  


Inside Economy

Remittance sinks to 7-month low

Publish: 09:10 PM, 02 Oct, 2022


The remittance inflow sinks to lowest in seven months. The inflow of remittance dropped around 25% in September to $1.54 billion compared to August earnings. 

Bangladesh received $2.04 billion in remittances in August, according to central bank data published Sunday (2 October).

The total remittance inflow in the current financial year is $5.67 billion, which was $5.41 billion during the same period last year.

According to experts, the cost of living for expatriates increased due to global inflation. Additionally, they are preferring hundi over legal remittance channels as they are getting Tk5-6 per dollar more than the bank exchange rate.

They had expressed concern that the Hundi channel may become more active. 

Remittances dropped to a seven-month low in September as the central bank fixed the dollar exchange rate for inward remittance. Bangladesh received a lower remittance of $1.49 billion last February.

Bankers said the downfall happened after, on the advice of the central bank on 12 September, the banks fixed the dollar exchange rate for remittances at Tk108.

However, bankers had initially feared that remittances may decrease due to fixing the exchange rate. The exchange houses said that the remittances came in less in the first week after the rate was fixed as remitters could not be given higher rates. 

A visit to the website of several exchange houses including Moneygram and Western Union shows that they are paying Tk106-107 per dollar for remittance inflow. However, the houses also charge $1-2 as transfer fee. 

As a result, those who send remittances in small amounts do not get an average rate of more than Tk104-105 a dollar. 

At present remittance through Hundi yields Tk113-114 per dollar. Due to fixed exchange rate at banks, the difference between dollar price of Hundi and the banking channel is at least Tk6-7. 

Remittance   Bangladesh  


Inside Economy

Exports decline in September: EPB

Publish: 06:39 PM, 02 Oct, 2022


Overall exports declined by 7.52% in September this year compared to the same period in 2021 after 13 months of recovery from COVID pandemic, according to the latest official figures.

But exports of readymade garments reached 10.27 billion dollars in the first quarter of FY2022-23, which is 13.41% higher than previous year’s corresponding time, according to data released by the Export Promotion Bureau (EPB) for July-September.

Knitwear exports, however, declined by 9%, while woven declined by 5.66%, it said.

BGMEA Director Md. Mohiuddin Rubel said on Sunday that BGMEA had already shared early indication of growth slowdown from September onwards, which is apparently reflected in export data for September. 

The global retail market is disrupted by many challenges starting from post covid container freight and supply chain crisis, price hike of raw materials, and then anticipated recession in the global economy, which is halting retail sales and demand for clothing, he said. 

Rubel said buyers were following cautious steps to make their inventory and supply chain optimum, so some of them are even holding back production and orders. 

“Altogether it has been quite a fluid and vulnerable situation, where we have all the strengths and possibilities to grow given our sustainability and competitiveness strides, yet the global economic outlook makes it difficult to foresee something bright for the final quarter of the year 2022,” he added.


Bangladesh   Export  


Inside Economy

Surprising remittance flow in September too

Publish: 02:25 PM, 19 Sep, 2022


Remittance inflow giving hope to the strained economy. In continuation of the last two months, this month's remittance flow is also surprising. In the first 15 days of this month, expatriate income or remittances have reached 1008.67 million dollars. If the current trend continues, the amount of expatriate income will exceed 200 million dollars at the end of the month.
This figure was found in a report of the Statistics Department of the Central Bank.

In the first 15 days of September, remittances through five state-owned commercial banks reached 140.5 million US dollars. Remittances through private banks reached 848.3 million US dollars. 3.4 million US dollars came through foreign banks and 16.4 million US dollars came through a specialized bank.

In recent times the largest number of remittances came through Islamic bank. Expatriates sent 220 million dollars through this bank. After that, 99.7 million dollars came through City Bank, 73 million dollars through Al-Arafah Islami Bank, 62.3 million dollars through Agrani Bank and 52.1 million dollars through Dutch-Bangla Bank and 55.8 million dollars came through Pubali Bank.
Meanwhile, the benefits of various concessions and discounts to increase the flow of remittances are already being seen. Expatriates have sent remittances of more than 2 billion dollars in legal channels for two consecutive months of the current financial year. Remittances of 203 crore 78 lakh (2.03 billion) dollars have arrived in the last month (August). In the month of July remittance of 209 crore 63 lakhs came to the country. A large amount of expatriate income came to the country due to Eid-ul-Azha in July.


Inside Economy

Export Development Fund loans can be repaid in instalments from now on

Publish: 03:06 PM, 15 Sep, 2022


Bangladesh Bank has introduced an instalment facility to repay loans from the Export Development Fund (EDF).

From now on, the entire loan liability can be paid in three instalments, which had to be paid at once earlier.

The Foreign Exchange Policy Department (FEPD) of Bangladesh Bank issued a guideline in this regard today (September 15, 2022) and sent it to all authorized dealers engaged in foreign exchange transactions.

According to the Bangladesh Bank directive, exporters can partially repay the EDF loan liability. A maximum of two partial repayments can be made during the loan tenure.

The circular stated that the remaining liability is to be repaid in one go during the loan tenure. That means exporters can pay the entire debt in three instalments.

Sector insiders say that exporters had to face issues with the repayment at once, as export income is not available at the same time.

In such a situation, the exporters will be able to partially pay the EDF liability in instalments only after receiving the export proceeds under the new directive.

The central bank provides foreign currency support to exporters for the import of manufacturing raw materials, under EDF. The tenure of an EDF loan is 180 days. Subject to the approval of Bangladesh Bank, this period can be extended by another 90 days.



Inside Economy

Default bank loans surge to record 1.25 trillion

Publish: 05:08 PM, 09 Sep, 2022


The amount of defaulted bank loans in the country increased by about 9.0 per cent to a record Tk 1.25 trillion amid the adverse impact of the Covid-19 pandemic until June this year.

According to the Bangladesh Bank’s June quarter report, banks' loan disbursement stood at Tk 13.98 trillion till June 2022, of which 8.96 per cent or Tk 1.25 trillion turned into bad loans, reports UNB.

Despite the loan moratorium and reducing the number of annual instalments, the volume of defaulted loans has reached a record high in the country so far, said the report.

Three months ago, in the March quarter of 2022, the defaulted loans totalled Tk 1.13 trillion, according to the report.

Accordingly, in the second quarter of the year (April-June), the amount of loans that remained unpaid in time in the banking sector increased by Tk 0.11 trillion.

In the first quarter (January-March) there was an increase of defaulted repayment by Tk 0.10 trillion to Tk 1.13 trillion.

Noted economist, Dr. A B Mirza Azizul Islam said, “If you want to reduce defaulted loans, you have to increase debt collection. At the same time, bulk moratorium and reduced number instalment facility should be stopped for the borrowers.”

He explained why. “Because, having been able to get concessions for several years, the defaulters now think that if I don't repay the loan, I will get more concessions in the future. So, the facility of the defaulters should be stopped.”

Former Bangladesh Bank governor Dr. Salehuddin Ahmed echoed Island.

He said that the loan collection should be focused on the legal procedure as the banks lend money to small depositors. Without legal action, the depositors' benefit would not be secured.

In reply to a query about the capital shortfall of different banks, he said that the more defaulted loans increase, the more security provision should be kept at the central bank.

Banks have run into capital shortages while keeping this extra money out, he said.

The central bank’s latest report found that the capital deficit of seven state-owned banks, including two of the specialized banks, was Tk 0.26 trillion at the end of June.

Out of this, Bangladesh Krishi Bank has the highest deficit of Tk 0.13 trillion. The second highest deficit of Tk 25.07 billion at the Agrani Bank, Tk 22.78 billion in Sonali Bank, Tk 22.61 billion in Rupali Bank, Tk 21.24 billion in Basic Bank, Tk 16.03 billion in Janata Bank, and Tk 21.49 billion in Rajshahi Agricultural Development Bank.

The capital shortfall of five private sector banks is Tk 34.37 billion. Among them, the deficit of the ICB Islamic Bank is Tk 16.59 billion, Tk 12.12 billion at Bangladesh Commerce Bank, Tk 3.0 billion at National Bank, Tk 2.63 billion at Padma Bank, and Tk 230 million at Bengal Commercial Bank. 

At the end of June 2022, the total capital deficit of 12 banks stood at Tk 0.29 trillion in the banking system, said the report.

Economy   Bangladesh   Bank Loan   Central Bank   BB