Helal Uddin; File Photo

This year's Eid market differs from previous years. Indian products, which were typically the top choice due to customer preference and demand, are not being purchased as much due to high prices and the impact of the Indian product boycott. Particularly, the Indian saree business has collapsed this time. Helal Uddin, President of the Bangladesh Shop Owners Association, discussed the reasons for the decline in Indian saree sales, considering factors such as the country's market and economy, in an interview with Bangla Outlook's Dhaka representative.

Bangla Outlook: How are local businessmen faring amidst the country's financial crisis?

Helal Uddin: The business of local shop owners has been significantly impacted by the poor financial situation. This Eid, the middle class hasn't turned out in large numbers to the markets. Even towards the end of Ramadan, we didn’t observe significant shopping activity from this demographic. This absence is concerning for traders, as the middle class constitutes the largest portion of the population and their absence means a major source of income is missing. Typically, merchants rely heavily on the purchases made by the middle class, as they form a substantial portion of any country's population. However, there is some positive news in the form of increased activity in sidewalk markets, particularly from the lower class. These individuals with limited income find it more feasible to shop in such markets as opposed to malls where prices tend to be higher.

Bangla Outlook: Has the 'Bharat Khedao' or Boycott India movement led by BNP and opposition parties affected the Eid market?

Helal Uddin: I haven't observed a significant impact of the 'Bharat Khedao' movement on the Eid market in our country. There's uncertainty regarding how much of the population is aware of this political issue. However, the high price of the US dollar has hindered the import of Indian products into our country. The cost of opening a Letter of Credit for imports by traders has risen from Tk 111 to Tk 120 per dollar. Consequently, the prices of Indian goods have escalated alongside the surge in the dollar's value. This has led to a decline in the import of Indian products, with a notable example being the 93 per cent decrease in the import of foodstuff, particularly rice, from India. Interestingly, Indian products are now priced higher than local goods due to the US dollar crisis. Consequently, buyers are refraining from purchasing goods from neighbouring countries in this year's Eid market in Bangladesh. However, it's important to note that the quality of domestic products has significantly improved, attracting buyers towards them. This shift towards domestic products should be viewed positively by the broader population, as it also contributes to our economy's growth.

Bangla Outlook: Reports are suggesting a collapse in the saree business ahead of Eid. Could you shed some light on this issue?

Helal Uddin: Indeed, the situation in the saree business is dire. Particularly, the Indian saree market in Bangladesh has experienced a complete collapse. Traditional varieties like Gujarat and Rajasthan sarees, Lucknow sarees, Rajasthan Kata Dariya sarees, and Varanasi loom Jamdani Shalu sarees, to name a few, have been severely affected. Additionally, there has been a noticeable decline in the number of women opting to wear sarees. If you observe any bustling street, you'll find fewer women donning sarees compared to previous times. The preference has shifted towards more comfortable attire like salwar kameez. The inconvenience associated with wearing a saree is deterring many from choosing it as their attire of choice. I estimate that the percentage of women wearing sarees has decreased by around 20 per cent.

Bengal Outlook: The impact of inflation on people's purchasing power and income generation is quite severe. What are your thoughts on this matter?

Helal Uddin: It's evident that unless inflation is brought under control, the purchasing power of the common people in our country will continue to suffer. Currently, food price is soaring above 10 per cent, further exacerbating the situation. We can draw insights from the economic policies implemented in Sri Lanka as a potential solution. Sri Lanka has successfully managed to reduce inflation to single digits, marking a significant improvement from its previous state. For instance, the country's inflation rate plummeted from 69.8 per cent in September 2022 to 6.3 per cent in July of this year. Notably, this rate is now lower than that of Bangladesh. According to the calculations provided by the Bangladesh Bureau of Statistics, Bangladesh's overall price inflation stood at 9.67 per cent in February, slightly down from 9.86 per cent in January. Bangladesh has been grappling with high inflation rates for over 18 years.

Bangla Outlook: What steps can be taken to revitalize Bangladesh's economy similar to Sri Lanka?

Helal Uddin: Reviving our economy akin to Sri Lanka's trajectory requires bold and honest initiatives. Political considerations must not hinder this process. As a middle-income country, Bangladesh needs to liberalize its economy further, shedding conservative policies. Decisions about economic and commercial matters need to be expedited. To achieve this, collaboration between the National Board of Revenue (NBR), Bangladesh Bank, and the country's businessmen is crucial. This collaboration should involve swift decision-making on various financial issues. Additionally, concerted efforts should be made to reduce the prices of essential commodities in the local market. Coordination between these key governmental institutions, alongside the Ministry of Finance and Commerce, is imperative to address financial and trade-related challenges effectively. Notably, Sri Lanka's central bank governor played a pivotal and independent role in steering the Sri Lankan economy towards recovery, serving as an example worth emulating.