Chattogram-based Asia Enterprise received a consignment of 59,580 kilogrammes (kg) of fresh ginger through the Cox's Bazar's Teknaf land port on May 12.  

The importer paid about $0.45 or Tk 48 for each kg to M/S Bossiullah, an exporter of Myanmar's Maungdaw, shows documents.

Not only Asia Enterprise, in the last four and a half months, meaning from January to May 15, 53 importers imported 6,863 tonnes of ginger at an average rate of Tk 70 per kg through the port.

The import value of each of the 174 consignments was shown to be between Tk 48 and Tk 96.

But for the last two weeks, every kg of ginger from Myanmar has been sold at Tk 220 to Tk 230 in the wholesale market and Tk 270 to Tk 290 in the retail market, which is almost four times higher than the import cost.

This indicates how some unscrupulous traders jacked up the prices of the essential cooking ingredient, cashing in on a supply crunch in the domestic market, said market observers.

Over the last week or so, especially after Cyclone Mocha hit the southern part of the country, ginger prices went up by over Tk 100 a kg, causing public outcry.

Importers and customs officials are claiming that imports have almost halved compared to normal times through all ports, including the Teknaf land port.

Talking to The Daily Star, several traders said a section of ginger traders, including importers, was taking advantage of the import crisis.

Importers said about 70 per cent to 80 per cent of imported ginger was from Myanmar.

Recently, imports almost stopped due to banks putting a stop to issuing pay orders citing the dollar crisis.

Importers also claimed that they have to pay Tk 38 lakh to Tk 39 lakh for a $30,000 bank draft from banks.

If the current exchange rate is taken into consideration, with each US dollar to be equivalent to Tk 106, the bank draft should have been worth Tk 31.80 lakh. This also had a role to play in the local price hike.

Bank officials say they did not allow opening bank draft for importers who solely import goods.

Imports have decreased due to new, special conditions imposed on the issuance of bank drafts on the orders of higher authorities, they said.

Mentionable, Sonali Bank and Myanmar Economic Bank are nominated to issue bank drafts on border trade by their respective governments under an agreement signed on May 18, 1994.

Recently, AB Bank has been added to that agreement.

Unlike any other land and sea port, the Teknaf land port allows traders to import goods showing only bank drafts instead of opening letters of credit (LC).

Imports from others countries including China, Thailand and India also decrease due to delays in opening LC.

The wholesale traders said they had increased prices because imports were lower than demand and for word going round that the market situation would normalise before the upcoming Eid-ul-Azha.

According to the Trading Corporation of Bangladesh (TCB), imported and local ginger are now selling at Tk 250 and Tk 400 per kilogramme whereas it was Tk 140 to Tk 250 respectively a month ago.

The price of imported ginger increased by 50 per cent per kg over the past month while registering a staggering 180 per cent year-on-year growth as of yesterday, the TCB data said.

"Import process through Teknaf is

Photo: Star/file

different as compared to other ports," Anamul Haque, owner of Asia Enterprise, told The Daily Star.

"Here goods are imported through bank draft instead of LC. Everyone has to spend extra money for opening bank drafts and getting serials," he said.

He also claimed that the extra money has to be paid for transportation and release of products from the port, which then affects the price of the product.

However, he did not specifically state where and how much of "the extra money" was spent.

"I have not been able to get a bank draft for the last two weeks. Only those with whom banks have a relationship can get a bank draft," said an importer on condition of anonymity.

"Each draft of $30,000 has to be bought from them for Tk 39 lakh. Again, there is a serial for availing bank drafts. These serials are also bought and sold with money," he said.

"We have nothing to do if someone outside the bank trades bank drafts," Golam Mostafa, Sonali Bank's Teknaf branch manager, told The Daily Star.

"We are not issuing new bank drafts only for imports. Only those who have exported dollars on their accounts can open a bank draft equivalent to that dollar," he said.

"This condition is being followed on the orders of higher authorities over the last two weeks," he added.