Amid the ongoing dollar crunch, traders have sought a special quota for the import of essential commodities to ensure regular supply ahead of Ramadan.

The proposal, prompted by the fears of the essential commodity market turning volatile in the forthcoming Ramadan was made during a meeting of the task force committee on commodity price review at the commerce ministry Wednesday (4 January).

Noting an increasing difficulty in opening letters of credit (LCs) for essential goods, which has declined due to various conditions imposed on the import of products to preserve the country's dollar reserves, traders put forward their demand in the presence of Commerce Mister Tipu Munshi and Private Industry and Investment Adviser to Prime Minister Salman F Rahman.

Tipu Munshi assured concerned traders that the proposal will be reviewed and discussed with the central bank.  

The relaxation of the cash margin rate against the opening of import LCs is important to keep prices of daily essentials at a tolerable level and the supply adequate during the forthcoming Ramadan.

The central bank fixed the opening margin rate for LC settlement at 75% to 100% in a bid to limit imports to save the depleting foreign currency reserves in the country.

Earlier, the central bank approved a 90-day deferral to pay import bills for eight essential commodities - edible oil, chickpea, pulse, pea, onion, spices, sugar and dates- and allowed opening letters of credit with a minimum margin for these products based on the bank-client relationship.

The privilege will be eligible for the date of initiation of imports till 31 March next year.