From fuels to fruits, imports slump on depressed demand

Infographic: TBS

Highlights:

• Imports of fuel, clinker, fruits dropped significantly in FY25
• Decline signals economic distress despite record customs revenue growth
• Dollar crisis, high LC margins stall essential fuel product imports
• Clinker imports down, reflecting slowdown in construction, infrastructure projects
• Fruit imports fell sharply due to tariffs, LC restrictions, inflation
• Iron, steel, capital machinery imports declined, hurting industrial investment prospects

Imports of some of Bangladesh's highest revenue-generating goods – from diesel and furnace oil to clinker and fruits – dropped significantly in the just-concluded fiscal year 2024-25, according to Chattogram Custom House data.

This is more than a statistical blip. It is a symptom of underlying economic distress.

Chattogram port, which handles nearly 90% of the country's imports, saw not only a decline in consumables but also in capital machinery, iron, steel, and other base metals – items essential for production, infrastructure development, and future investments.

Industry insiders point to depressed demand, soaring letters of credit (LC) margins, elevated duties, and a prolonged dollar crisis that continues to dent business confidence.

This decline comes even as Chattogram Custom House reported record revenue of Tk75,432 crore in FY25, up from Tk68,755 crore in the previous year. 

But behind the numbers lies a telling shift: growth is coming less from import volumes and more from higher duties imposed on fewer goods.

Moinul Islam, former president of the Bangladesh Economic Association and former professor of economics at the University of Chittagong, said the growth rate of the economy has not increased. As a result, imports of fuel oil, clinker and fruit have declined. 

"There are several other factors as well. However, if imports are falling because of a slump in investment, that is not a good sign," he told The Business Standard.

Dollar crisis, policy pressures stall fuel imports

Bangladesh imports several fuel products including high-speed diesel, furnace oil, petroleum oils, and oils from bituminous minerals or crude. 

These fuels are vital for electricity generation, fertiliser production, transport, and agriculture. Most imports are handled by the Bangladesh Petroleum Corporation (BPC).

In FY25, diesel imports dropped 21.65%, furnace oil by 10.22%, and petroleum oils by 16.75%, compared to the previous fiscal year. 

According to BPC sources, the decline stems from several factors: captive power plants shutting down, increased use of liquefied natural gas in transport, falling demand, and the taka's depreciation.

BPC officials, speaking on condition of anonymity, also cited reduced fuel consumption and dollar scarcity. At the beginning of FY25, banks were unable to meet BPC's dollar needs, delaying payments to suppliers and straining relations with foreign oil companies.

High-speed diesel was the single largest source of customs revenue in Chattogram. In FY25, diesel imports fell to 27.94 lakh tonnes from 35.67 lakh tonnes a year earlier – a drop of 7.72 lakh tonnes or 21.65%.

Moni Lal Das, general manager (trade and operations) at BPC, said private firms are now also importing diesel. 

"Some petrochemical companies are supplying fuel oil as a by-product of raw materials. For example, Bashundhara Group's bitumen plant provides about 20% diesel as a by-product from crude bitumen."

Furnace oil, another top customs revenue earner in FY25, saw imports fall to 18.80 lakh tonnes from 20.95 lakh tonnes – a decline of 10.22%.

Petroleum oil ranked fourth in terms of revenue. In FY25, imports stood at 14.19 lakh tonnes, down from 17.05 lakh tonnes – a drop of 2.86 lakh tonnes or 16.75%.

Clinker imports reflect construction slowdown

Clinker – the essential raw material for cement production – also declined by 2.48% year-on-year, from 1,658 lakh tonnes in FY24 to 1,617 lakh tonnes in FY25.

Though the percentage drop seems modest, it signals a broader slowdown in construction and public works. Clinker ranked third among import items in terms of revenue contribution.

Amirul Haque, president of the Bangladesh Cement Manufacturers Association and managing director of Premier Cement, said, "After the recent change in the political landscape, mega infrastructure projects have lost momentum, and many large contractors have gone into hiding. As a result, clinker imports have declined. 

"Around 5% of what was imported remains unused."

Fruit imports suffer as tariffs rise

Fruits such as apples and mandarins – both key revenue-generating imports – saw steep declines in FY25 as aggressive tariffs and LC restrictions took hold.

Apple imports fell 11.27%, while mandarins plunged 22.76%. Importers blame the government's decision to categorise fruits as luxury goods, triggering sharp hikes in supplementary duties and pushing LC margins to 100%.

"These are essential for nutrition, not luxuries," said Sirajul Islam, president of the Bangladesh Fresh Fruits Importers Association. 

"We now pay Tk105.80 in duty per kilo of apples, up from Tk90. Duties on mandarins and pears have increased by more than Tk15 per kilo, and for grapes by Tk24," he added.

He mentioned that many small and medium-sized traders have already exited the market, unable to operate under such restrictive conditions.

Apples ranked fifth among import items by volume at Chattogram, with FY25 imports dropping to 1.39 lakh tonnes from 1.57 lakh tonnes the year before. 

Mandarins, which ranked 15th in revenue contribution, fell to 53,220 tonnes from 68,907 tonnes – a year-on-year drop of 22.76%. In terms of assessed value, total apple imports declined by 35.84%.

These declines also reflect weakening consumer purchasing power, with Bangladesh's inflation rate hovering above 9% for more than two years.

Iron and steel

According to Bangladesh Bank data, imports of iron, steel, and other base materials – vital for industrial growth – stood at $4.75 billion between July 2024 and April 2025, marking a 4.4% decline year-on-year.

Over the same period, capital machinery imports fell even more sharply, dropping 22% to $2.4 billion.