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The government is set to encourage 'forward contract' mechanism for import of key essential goods to avert any possible supply crisis in near future, officials said.
A forward contract is anagreement that obligates the holder to buy or sell an asset like commodity for a predetermined delivery price at a predetermined future time.This is an over the counter products and it's uses provide price protection.
When contacted, secretary of the commerce ministry Md. Jafar Uddin said, "We are favouring it to ensure adequate supply of goods at reasonable prices in the country."
He explained that forward contract/purchase means an agreement between importers and exporters concerned for three/six months or more.
A source said the commerce ministry will issue a circular in this regard immediately so that importers can comply with it.
Ameeting of the taskforce committee has decided to ask the country's importers to comply with forward imports.
"We have taken initiative to keep the prices of essential items stable throughout the year. We will ask the importers concerned to import essential commodities in advance," a senior commerce ministry official,whoattended the meeting, told the FE.
At present, both prices and supplies of various essentials in the country remained stable, he said, adding that the government aims to keep the prices of essentials cheapto mitigate the people's sufferings.
In the meeting, other necessary steps had been taken to stabilise the prices of garlic, sugar, edible oils, onion and others items in the market.
Besides, the ministry had already taken multiple measures to provide aid in import and export sectors to combat the COVID-19 in the country.
It had already asked the country's importers concerned to continue import of staple goods, he added.
Under the circumstances, an adequate supply of essential items should be ensured to meet the growing demand of the country, the official also mentioned.
Currently, the government has also been distributing a huge amount of relief materials among the pandemic-hit people, he said, adding that there will have demand for such goods.