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Transport, food sectors to bear brunt of pre-poll restrictions

Tobacco, tea, beverage in high demand


| Updated: December 29, 2018 16:17:03


Representational image: Buses are parked in front of the Mohakhali Bus Terminal in defiance of Dhaka North City Corporation's directive, February 3, 2018. Photo: FE/Files Representational image: Buses are parked in front of the Mohakhali Bus Terminal in defiance of Dhaka North City Corporation's directive, February 3, 2018. Photo: FE/Files

Some key service sectors are expected to see a slump in business in the next few days as a result of pre-poll restrictions imposed by the Election Commission.

Bangladesh goes to the national polls tomorrow (Sunday).

The food supply, peoples' movement and the mobile financial services are some of the areas, which may face troubles due to the restrictions, which came into force from Friday midnight.

People familiar with the development said that the prices of essential commodities might go up as the Commission had imposed an embargo on the movement of heavy vehicles on the highways.

Still, some businesses stand to benefit such as tobacco products, tea, beverage and confectionaries.

Maqbul Ahmed, president of the Bangladesh Covered Van, Trucks Transport Agency Owners' Association, the biggest platform of the heavy motorised vehicles, said goods-laden lorries are set to face serious troubles.

"It will impact the supply chain in the urban areas."

Prices of many perishable items including rice, meat, fish and some vegetables increased slightly on Friday at the retail level.

According to vendors and grocers, prices of the items increased by 5.0 to 10 per cent on Friday, compared with a day earlier.

Coarse rice Swarna sold at Tk 40-Tk 43 a kg on Friday which was Tk 38-Tk 40 a kg earlier.

Beef price shot up to Tk 500-Tk 550 a kg from Tk 480-Tk 500 a kg.

Mr Ahmed said the owners are "reluctant" to ply vehicles on the streets over the last few days sensing pre-polls violence.

Launch Owners' Association said that passengers would suffer from the embargo while goods transport will also be hampered.

The ministry of shipping issued a circular, suspending plying of launch, speed boat and other engine-driven water transports from early hours of Sunday.

Shahidul Islam Bhuiyan, vice president of the association, said the embargo will be for 24 hours.

Meanwhile, mobile money transactions across the country are also facing restrictions due to a central bank order.

In a circular issued on Thursday, Bangladesh Bank asked such service providers to halt all sorts of transactions from 5:00 PM on Friday to 5:00 PM tomorrow.

Personal account holders, however, can make transactions of up to Tk. 5,000 a day from 5:00 PM Saturday to 5:00 pm tomorrow, the circular added.

The BB move, according to insiders, is aimed at reducing the influence of money on the votes.

The restrictions, however, are likely to create inconveniences for the mobile financial service account holders as every day transactions worth Tk 10 billion take place in the sector.

A total of 196,134,910 transactions took place through MFS platforms in last month alone. The total value of these transactions was Tk. 315.27 billion.

On average, 6,537,830 transactions took place each day through the MFS channels, while the average value of such transactions per day was Tk. 10.5 billion.

Some businesses are licking their lips at the prospect of better trade in the next few days.

Md Shamsul Islam Vorosha, proprietor at the TAJS Biri Factory in Rangpur, told the FE the production has increased by around 10 per cent.

"In the past, people used to smoke much while polls near, but the scenario has changed now."

Switching over to the upper segment of tobacco products, Mr Vorosha, however, said candidates now offer mostly cigarettes instead of "biri. "Biri has now become old-style."

In contrast, tobacco products distributors told the FE the sales of products have dropped in the city.

Muhammmed Amjad Hussain, who owns Advisory Services, a tobacco products distributor in the city, told the FE: "December sales of both high and low-end segments of tobacco products in Dhaka have dropped."

"This is a picture of Dhaka city," he said, adding: 'I cannot comment on the sales figures of the rural areas."

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