FBCCI asks traders not to make extra profit during Ramadan

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) yesterday urged the businessmen to refrain from making extra profit during the month of Ramadan out of their social responsibility.
FBCCI called upon the traders to import more essentials. It also urged the government to import food items on emergency basis to ensure stability in the market and the supply chain.
The apex business body made the calls at a press briefing at the FBCCI Bhaban following an emergency meeting of its board of directors.
"Unnecessary questions during opening Letter of Credit (LC) and depositing or withdrawing money from the banks create fear among the clients causing negative impacts on the business and the supply chain," said FBCCI President Mir Nasir Hossain.
Such obstacles must be removed immediately to free the traders from all sorts of fears and threats, he said. He requested the government to take realistic measures on reserves and ensure that no businessman is harassed.
FBCCI said country's land ports should remain open seven days a week to speed up unloading and maintain the supply chain.
It observed that the overall market management should be reviewed to allow the marginal farmers and small traders market their products easily.
"We are requesting business firms and industries to ensure supply of food items for their own institutions. They might open outlets for their labour force to allow them buy products at a fair price during Ramadan," Mir Nasir Hossain told the journalists.
Lauding the government's instructions about reducing bank interest rate to 12 percent on import loans, he said if the interest rate were reduced to 10 percent, it would bring better results.
"Such reduced rates will have positive implications for small importers," the FBCCI president said. He requested the banks to keep LC margin and commission at minimal level.
Appreciating the withdrawal of 5 percent import duty on edible oil, he said there is a scope of reducing the price further by withdrawing value added tax (VAT) from it.
He said FBCCI is requesting the traders concerned to keep the retail price of oil fixed following negotiations between Bangladesh Rifles (BDR) and the oil refiners' associations recently.
Responding to a complaint that per litre edible oil is being sold at Tk 85 or more against the fixed price of Tk 80 in retail market, MA Rouf Chowdhury of Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers' Association said his organisation could monitor the price only in the wholesale market.
"Over two lakh retail shops sell edible oil and it is impossible for the association to monitor them. You have to lodge complaints with the BDR to take actions against the retailers who sell per litre edible oil for more than Tk 80," he said.
Mir Nasir Hossain said the government should allow the importers to buy dollars at a competitive rate from any bank. It should also ensure that the exchange rate during opening LC is considered the base rate.
The government must stop assessment of income tax considering the 10 percent gross profit (GP), as profit from wholesale of essential commodities is very limited, he said asking the businessmen not to sell adulterated products.
The FBCCI observed that the government should regularly record the international market prices of commodities and their prices after import.
Asked if syndicates are active in businesses, Mir Nasir Hossain said theoretically, syndicates do not exist in free market economy.
"However, many large businesses have grown in the country over time following government policies. Their influence might have been there in the market. This is a common phenomenon," he said.
When asked how the FBCCI can keep the prices of essentials stable during Ramadan, he said consumption of food items during this particular period doubles. "This should also be considered in fixing the price of essentials," he added.