The ministry of commerce (MoC) has urged the Bangladesh Bank (BB) to fix the rate of interest in importing onion at not more than 10 per cent for next one month on the occasion of Eid-ul Azha.
The ministry also requested the central bank to lower the letters of credit (LCs) margin, official sources said.
The MoC Sunday sent a letter signed by deputy secretary of the ministry K M Abdul Wadud to BB to take the steps.
"The MoC has requested the BB to take necessary steps for keeping banks' rate of interest at not more than 10 per cent and lower LCs margin for importing onion for next one month to arrest its rising prices and to keep supply adequate before Eid al-Azha," ministry sources said.
While opening Letters of Credit (LCs) for importing onion, necessary steps would be taken by the MoC whenever needed, official sources said.
"The demand of onion will double during Eid-ul-Azha. These steps are being taken so that there is no scarcity," a MoC official said.
The importers have to keep 100 per cent LCs margin while importing onion. The high rate of interest and the LCs margin discourage importers. Traders concerned have suggested keeping the interest rate at 10 per cent and the LCs margin at a tolerable level for the importers, the official said.
The government always tries to keep the market stable so that prices of all essential items remain within the purchasing power of the people, a deputy secretary said.
Keeping in mind the upcoming Eid ul-Azha the government is putting in extra efforts in this regard, he added.
A meeting was held at the ministry of commerce recently to assess the overall position of the market with importers, wholesalers and association leaders who import essential items like onion, garlic, ginger, turmeric, dry chili, spices. At the meeting the importers requested taking the two steps to facilitate essentials import, concerned sources said.
Source:The Financial Express