Between October 2024 and January 2025, imports of sugar, soybean oil, lentils, chickpeas post double-digit growths
Essential commodity imports have seen a sharp rise in the last four months, driven by increased demand ahead of Ramadan, which is scheduled to begin on March 1, according to the latest data from Bangladesh Bank.
Typically, the consumption of sugar, lentils, and cooking oil rises before the fasting month, as households and businesses stock up on food supplies.
For all latest news, follow The Daily Star’s Google News channel. Reflecting this trend, the settlement of letters of credit (LCs) for key commodities, including sugar, soybean oil, lentils, and chickpeas, increased significantly between October 2024 and January 2025 compared to the same period a year earlier.
The data show that LC settlements for these essential goods registered double-digit growth, a surge attributed to rising demand ahead of Ramadan, inflationary pressure, and changes in global supply chains.
According to the BB report, sugar imports rose by 20 percent, reaching 454,034 tonnes between October 2024 and January 2025, compared to 378,265 tonnes in the same period last year.
Soybean oil imports saw a 35 percent increase, with 598,252 tonnes imported this year compared to 447,820 tonnes a year ago.
The most significant increase, however, was in lentil imports, which surged by 86 percent to 157,837 tonnes, up from 109,378 tonnes in the previous year.
Similarly, chickpea and gram imports rose by 85 percent and 64 percent, respectively, indicating strong demand for pulses.
“Businesses are securing their imports early to avoid future price surges and to ensure the availability of essential commodities for Holy Ramadan,” said Biswajit Saha, director of corporate and regulatory affairs at City Group.
He noted that the upcoming fasting month is a key factor behind the rise in LC settlements, reflecting increased imports of essential goods.
As Ramadan approaches, all eyes will be on food prices, Saha added.
While the rise in LC settlements suggests that importers are preparing for a high-demand season, how this impacts market stability remains to be seen.