Rice, edible oil imports rise amid economic stabilisation efforts

Rice, edible oil imports rise amid economic stabilisation efforts Rice and edible oil imports to the country have shot up while wheat and sugar import decreased in the first eight months of the 2024-25 fiscal year (FY25).

The data, published in the Bangladesh Bank’s Monthly Update on Major Economic Indicators, points to policy-driven market adjustments in the country’s food sector.

According to the Bangladesh Bank, food grains and consumer goods imports rose by 16.71% and 22.97%, respectively, in the July-February period of FY25.

In that period, wheat and sugar imports have declined, likely due to existing domestic stocks, high global prices, or substitution with other staples. However, edible oil imports saw a notable rise, responding to steady consumer demand and relatively stable international prices.

A similar trend was observed in the July-January window, when food grain and consumer goods imports climbed by 17.48% and 9.5%, respectively.

Macroeconomic reforms by the interim government – particularly efforts to stabilise the exchange rate and slow the depletion of foreign currency reserves – have played a crucial role in facilitating trade, said economists.

Compared to last year, importers are now finding it easier to access foreign currency and open LCs.

Encouragingly, inflation, which had been on the rise, began to ease in February 2025, offering further relief to households and importers alike.

With key indicators showing resilience, policymakers appear cautiously optimistic. The food grain imports increased by 16.71% in the first eight months of the current fiscal year compared to the corresponding period last year, according to the latest central bank data.

Of the total food grains, wheat import fell by 6.99% while rice import increased by 2,051.28%, according to the Bangladesh Bank report.

Consumer goods imports saw an increase by 22.97% year-on-year, according to the data.

Of the total consumer goods, edible oil imports increased by 16.27%, while sugar saw a 2.61% decline during the period.

Agro-economist and researcher Dr Jahangir Alam said, “The increase in imports is largely a result of the government’s liberal import policy. By easing LC conditions and reducing import duties, the government has made it easier for importers to bring in essential commodities.”

This policy was necessary to ensure food security and stabilise the domestic market in the face of global volatility, he said.

The economist also acknowledges the need for sustained reforms to ensure stable supply chains, affordable prices, and robust economic growth.

The interim government is also prioritising food security and reduced the rice import tariff to 2% in marketing year 2024-25, leading to an estimated eight lakh tonnes of rice imports.

This sharp upwards move, especially in imports of intermediate goods, highlights a rejuvenation of economic activities across key industries during the comparative timeframe, they mentioned.

Tags: rice, imports, edible oils, Bangladesh