Imports through Benapole port down 5.5 lakh tonnes in first half of FY23

Goods import through the Benapole land port in Jashore declined by about 5,57,972 tonnes in the first six months of the current fiscal compared to the corresponding period of the last fiscal, which traders said was mainly due to import curbs by the government.

In the July-December period of FY 2021-22, around 17.11 lakh tonnes of goods came in through the port, which dropped to 11.53 lakh tonnes in the same period of FY 2022-23, according to Benapole Customs House.

The revenue collection declined by around Tk308 crore, as Tk2,631 crore was collected in FY 2022-23 against a target of Tk2,939 crore.

Nasir Uddin, joint secretary of Benapole Customs C&F Agents Association, told The Business Standard (TBS) that Bangladeshi and Indian traders are more interested in trading through Benapole port because of its easy communication facility.

"But the government has imposed a 100% margin on LCs due to the dollar crisis and banks are reluctant to open LCs other than for food products, which dragged down imports significantly," he said, adding that revenue dropped as a result.

According to Benapole Customs sources, around 26,44,000 tonnes of goods were imported in fiscal 2020-21, whereas the figure was 21,14,000 tonnes in fiscal 2021-22, with a decline of 4,30,000 tonnes year-on-year.

In the last fiscal, the Benapole Customs House had a revenue shortfall of Tk558 crore as Tk4,599 crore was collected against the Tk5,158 crore target.

However, despite more imports, the revenue shortfall was even bigger in FY 2020-21 due to products imported under the duty-free facility for various government projects. Benapole faced a shortfall of Tk2,099.43 crore in revenue collection with Tk4,145.14 crore collected against the target of Tk6,244 crore in FY 21.

Faruk Hossain, an importer in Jashore, told TBS, "I import motor parts from India and sell them all over the country. Currently, no bank in Jashore is opening LC for auto parts imports. Many import-based businesses in the district are down, including mine. Who knows what lies ahead?"

"As there is no import, there is no product for sale. Traders in Jashore are now in a quandary. I do not know how we will get out of it," said another importer Zahid Hossain.

Matiar Rahman, director of India-Bangladesh Landport Import-Export Committee, told TBS that the high LC margin is the main issue behind the import decline.

Fakir Aktarul Alam, head of United Commercial Bank (Khulna-Barishal zone), said, "Not only in my bank but LC opening has declined in all banks due to the high margin. Once the dollar crisis is over, imports will become easier." 

Abdul Haque, manager of Eastern Bank's Jashore branch, had similar comments when asked about banks' reluctant attitude towards opening LCs.

However, several importers, who did not want to be named, blamed the Benapole port authority for the downturn in imports. 

They said many traders left Benapole port and resourced to other ports after facing harassment and irregularities at Benapole Customs and port management.

Besides, there is no customs officer available at Benapole on Friday and Saturday. They leave the office area for Dhaka on Thursday and return by air on Sunday, which causes inconvenience to regular traders, the importers alleged.

When asked, Safayet Hossain, joint commissioner of Benapole Customs House, said imports declined due to a dollar shortage and the LC issue, not because of any harassment. No one is being harassed at Benapole port.

Badruzzaman Bablu, former general secretary of Jashore Chamber of Commerce and Industry, said thousands of traders involved in imports are in financial distress due to the LC opening issue. If the situation persists for a long time, importers will be left financially crippled.