Dhaka, Bangladesh (BBN) – Bangladesh’s overall imports grew by 33.02 percent with food grains recording the highest rise of 173.88 per cent in July, the first month of the current fiscal, officials said.

“The overall imports increased in July 2011 mainly due to higher import of food grains, petroleum products and capital machinery,” a senior official of the Bangladesh Bank said, adding that the overall import pressure may ease gradually in the near future if the existing trend of opening of letters of credit (LCs) continues.

Letters of credit (LCs) against imports worth US$2.79 billion were settled in July this fiscal compared to $2.09 billion of the corresponding period of the last fiscal, according to the central bank statistics.

Opening of LCs against imports, generally known as import orders, increased by 5.46 per cent to $3.17 billion in July last from $3.00 million in the same period of FY11, the BB data showed.

The import of food grains stood at $179.79 million during the period under review against $65.65 million of the corresponding period of the previous fiscal while the import of other consumer goods declined to $161.01 million from $161.02 million in July 2010.

Petroleum products import increased by 162.26 per cent to $364.58 million in July last from $139.02 million of the previous fiscal year, the central bank official said.

“The rising trend of fuel oil may continue in the coming months to meet the growing demand for fuel by the oil-based power plants,” another BB official told BBN.

Currently, around 25 oil-based power plants are operating across the country.

Besides, the installation of nearly a dozen of such power plants is under process to resolve power crisis by the end of 2012, power and energy ministry officials said.

However, import of industrial raw materials witnessed a 8.09 per cent growth to $997.77 million in the first month of FY12 against $923.06 month previously while the import of industrial spares and accessories was worth $246.76 million compared to $186.09 million.

Import of capital machinery — industrial equipment used for production — was up by 68.28 per cent to $218.80 million during the period as against $130.02 million of the previous fiscal.

The central banker also said the upward trend about import of capital machinery will continue if the government ensures adequate supplies of gas and power, particularly to the industrial units.

He also said installing more power plants will increase the import of capital machinery in the coming months.

Import of intermediate goods like coal, hard coke, clinker and scrap vessels increased by 125.83 per cent to $221.07 million in July last from $97.90 million in the corresponding period of the previous fiscal.

BBN/SSR/AD-16Sept11-2:35 pm (BST)