Pulses importers have demanded of the new Governor of the State Bank of Pakistan for removal of 35 percent LC margin for import of pulses, saying that rupee devaluation had already made the commodity import costlier.
In a formal letter in this regard, the Karachi Wholesale Grocers Association (KWGA) has written to the new SBP Governor Saleem Raza for lifting the 35 percent LC margin from import of pulses. Anis Majeed, chairman of KWGA advocates the removal, saying that pulses do not fall in the index of luxury items and the margin on its import is illogical.
He told Business Recorder on Friday that SBP's move has made pulses import costlier at import stage. And, the commodity price could not fall in the local market to the extent the globally price slump, which is still higher than expectations only because of the margin imposition. He said that the nosedive of Pakistani rupee against dollar had also given rise to import value of several commodities including pulses. As a result, many importers have stopped placing import orders.
About local market situation, Anis said that the new crop that is likely to arrive in the March-April period of this year will, however, relieve the situation. Over 34 percent decline in pulses import during November of the current fiscal year, he linked to imposition of 35 percent LG margin.
The country imported pulses worth $8.921 million during November this year as compared to $13.536 million during the same period of the last year 2007-08, showing a sag of $4.615 million or 34.09 percent. During July-November period of the current fiscal year, pulses imports reduced to $71.207 million from $82.762 million during the same period of last fiscal year, depicting a slump of $11.555 million or about 14 percent.
However, on monthly basis, pulses import in November of the current fiscal year grew by $1.399 million or over 18 percent from $7.522 million in October during the current fiscal year, according to the Federal Bureau of Statistics.