Sales in Chattogram’s Khatunganj, Asadganj and Chaktai, country’s largest consumer goods wholesale markets, dropped significantly due to political unrest and recent imposed cash withdrawal limit by the central bank.
Following the fall of the Awami League government, central bank has imposed restrictions on cash withdrawals from banks across the country with the interim government’s instructions.
Based on the latest circular from Bangladesh Bank, commercial banks in the country are now mandated to restrict daily cash withdrawals to Tk three lakh per account.
Meanwhile, financial transactions are carried out in large amounts of cash and banknotes in Khatunganj, Asadganj and Chaktai. As a result, transactions in the wholesale market became limited. This reduction in trade has led to a decrease in the prices of several consumer goods.
Businesspeople from Khatunganj, Asadganj, and Chaktai said that their credit transactions in the wholesale market were previously disrupted due to clashes and curfews in July and early August. Additionally, with the current restrictions on cash withdrawals from banks, they are now limited to conducting credit transactions on a smaller scale in the wholesale market.
Since, small vendors and local dealers are unable to withdraw sufficient cash from banks; they are facing difficulties paying their suppliers and daily workers with the limited funds available to them.
Solaiman Badshah, former general secretary of the Chaktai-Khatunganj Wholesaler Business Welfare Association, told The Business Post that sales are no longer being conducted without cash or, in some cases, even with cheques due to a lack of trust. Furthermore, the restriction on cash withdrawals has led to a reduction in credit transactions, contributing to a downturn in the market.
“Businesses need a significant amount of cash daily. Not all businesses accept checks, and many require cash payments only. As per Bangladesh Bank guideline, transactions over Tk three lakh are only possible through bank transfers or checks, creating a disruption in payment. And it is affecting sales and the prices of consumer goods. This issue needs to be resolved quickly,” he said.
With a decrease in transactions, prices of several wholesale goods, including soybean oil, sugar, pulses, onions, and cardamom, have declined in Khatunganj, Asadganj, and Chaktai over the past few days.
At the beginning of this week, The price of palm oil has dropped to between Tk 4,850 and Tk 4,900 per mound (37.32 kg). Soybean oil was priced at Tk 5,800 per mound on Sunday.
The price of wheat has decreased and is now between Tk 1,300 and Tk 1,600 per mound. The price of sugar, which was Tk 6,300 per sack (50 kg) in previous weeks, has now fallen to below Tk 6,000.
The price of lentils has decreased by Tk three to four per kg, now trading at Tk 122-123 per kg. The price of mung beans has fallen by Tk five to seven per kg, now priced at Tk 132-160 per kg. The price of peas has decreased by Tk two per kg, now selling for Tk 70 per kg.
With onions being imported from several countries as alternatives to those from India, the supply has increased, leading to a drop in onion prices. Onions (both domestic and Indian), which were previously sold at Tk 90-95 per kg, are now being sold at Tk 88-90 per kg.
Onions imported from countries other than India are currently priced at Tk 60-70 per kg. The price of cardamom has fallen to Tk 2,500 per kg, down from Tk 4,000 per kg a month ago.
