The payment of import bills increased significantly in July, the first month of the current financial year, due to a rise in payment of bills for food products.
According to the latest BB data, the settlement of letters of credit, or import bill payment, registered a growth of 12.09 per cent in July compared with that of an 8.74 per cent growth in the corresponding month of 2012.
The total import bill payment stood at $3.21 billion in July this year. It was $2.86 billion in July 2012 and $2.63 billion in July 2011.
A BB official told New Age on Monday that the import had increased significantly in July as the import of food grains (rice and wheat) and other food products shot up in the period.
The import of rice, wheat, sugar, edible oil, pulses etc rose in July compared with that of the corresponding month of 2012.
The import of rice increased to $12.15 million in July 2013 from $1.26 million in July 2012, that of wheat to $118.10 million from $72.32 million, that of sugar to $65.66 million from $46.69 million, that of edible oil (refined) to $43.37 million from $20.52 million, that of edible oil (crude) to $112.60 million from $52.98 million, and that of pulses $39.20 million from $34.49 million.
The BB official said that the lower import payment for food grains had played a significant role in declining the overall import payment in the last financial year.
The settlement of letters of credit or actual import bill payment stood at $32.35 billion in the FY13. The LC settlement in the FY12 was of $34.81 billion, or 8.96 per cent higher than the figure of the FY11.
LC settlement for food grains (rice and wheat) in the FY13 posted a negative growth of 28.25 per cent from a negative growth of 53.56 per cent in the FY12 as the country enjoyed a bumper production in the last few cultivation seasons.
LC settlements for food grains in the FY13 were of worth $664.28 million against $925.87 million in the FY12.
The BB data showed that the import of capital machinery, back-to-back LCs for garment sector (fabrics, accessories and other products) and petroleum had also increased in July compared with that of the same month a year ago.
The import of capital machinery increased to $190.78 million in July from $143.20 million in July 2012, that of back-to-back LCs to $559.82 million from $481.97 million, and petroleum and petroleum products to $368.86 million from $306.30 million.
Another BB official said that the increased import payment for capital machinery and industrial raw materials for garment sector in July was a temporary phenomenon as the country’s businesspeople had adopted a ‘wait and see’ approach amid recent spates of political violence.
The BB data showed that the LC opening or import orders had also posted a 29.14 per cent growth in July compared with that of a 1.44 per cent growth during the same month a year ago.
In July 2013, LCs worth $3.63 billion were opened by the banks compared with LCs worth $2.81 billion opened in July 2012. LCs worth $2.77 billion was opened in July 2011.
-With New Age input
