Orange exporters in Gelephu have started exporting oranges to Bangladesh. However, they are stressed that the ongoing dollar crisis in Bangladesh may disrupt their business. The export of oranges started on Monday, so the orange depot in Gelephu is abuzz with labourers packing oranges in wooden crates. According to the exporters, the yield is better than in the past years.
But they are worried that importers may not be able to pay them the hard currency since Bangladesh is faced with a shortage of dollars.
Almost all seven exporters in Gelephu have received a letter of credit or LC from their importers. But if the dollar scarcity continues for long, they are worried their orange export business will be severely affected. A Letter of Credit is a payment mechanism used in international trade that guarantees the buyer’s payment to the seller from a creditworthy bank.
Exporters say the situation will work in their favour if the government allows them to accept the payment in the Indian rupee or Bangladeshi currency Taka.
“If the government could allow us to accept currency either in rupee or in Taka instead of dollars, this would immensely benefit us and the farmers. Otherwise, given that oranges are perishable, they can’t be kept in crates for longer periods,” said Sangay, who deals with the orange export business.
“We have not been able to export oranges due to the LC issue till now. We didn’t receive LC from them because of the dollar crisis. If the government could accept Bangladesh Taka, then it will be convenient for us and export will be smooth,” added another exporter, Sangay Wangdi.
Their opinions were echoed by some other orange exporters.
“They said that they have no hard currency. If the government could accept the Bangladeshi currency Taka, then it will be helpful for us since we can accept the payment in Taka from the importers,” said Sangay Choden, who has been in the orange export business for years.
Commenting on the issue, the Regional Secretary of the Bhutan Chamber of Commerce and Industry Office in Gelephu said exporters have received enough LC from the importers to complete the export of oranges this time.
“Export season is for three months which will last till February next year. I think some exporters might have 90,000 or 50,000 or 40,000 dollars received through LC from the importers. This will be sufficient for this export season,” clarified Kelzang, the Regional Secretary of the Bhutan Chamber of Commerce and Industry (BCCI) in Sarpang.
Nonetheless, if the problem escalates, he will put up the matter with the relevant government agencies and seek intervention. According to local media in Bangladesh, the USD crunch is likely to persist until June next year.
Trade officials have also maintained that a letter of credit is only accepted in hard currency.
Orange dealers in Gelephu exported more than 10,600 metric tons of oranges last year.
Karma Wangdi, Sarpang
Edited by Pema Lhaden
