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HomeEditorThe economy of the festival is increasing due to consumption

The economy of the festival is increasing due to consumption

In any developing economy, consumer spending or large-scale consumer buying acts as a stimulus during the transition period. In the same vein, the economy of our country, which is under pressure around the festivals of Ramadan, Eid and Pahela Baisakh, has also improved somewhat.

The supply of money in the market has increased due to the festive allowance of public and private employees, remittances sent by expatriates and Zakat-Fitra. That is, additional money has created demand in the market.

On the other hand, the supply of goods has increased. Supply and sale of all types of products including food, clothing, cosmetics, electronics, ornaments have increased. From sidewalks to elite shopping malls, retail has grown. Shopping has increased online. The iftar market is crowded. The flow of money is also increasing in the village.

Also, additional money is being added to the entertainment and transportation sectors. But there are downsides too. Office-courts are closed for 14 days this month including Eid holidays and Fridays. It will also have a negative impact on the economy.

On the other hand, inflation will also increase due to additional money in the market. Those concerned say that the Ukraine-Russia war started before the negative effects of Corona were overcome. Then the crisis in the Middle East also has a great impact on emerging economies like Bangladesh. In this situation, festivals come as a blessing.

But still there is no accurate account of the economy of our festival. However, various government and private accounts say that an additional one and a half lakh crore transactions are expected to be added to the economy this month.

Due to the frequent exchange of large sums of money in various sectors around the festival, as economic activity increases, so does the revenue of the government. Demand in the economy has increased. If supply cannot be maintained with this, inflation will increase and it will also have a negative impact on the economy due to various national and international factors.

The Ukraine-Russia war started before the Corona crisis was over. Then came the Middle East crisis over the Palestine-Israel issue. The macro economy is under pressure. In this situation, festivals like Eid and Baisakh will have a positive impact on the economy. Because, it creates additional demand in the country. This festival can be said to be positive if supply can be kept against demand.

Apart from the bonus for the government employees, almost all the private organizations are also giving bonuses. With this additional money in the market, the purchasing power of some people will increase. This will create an internal demand. But inflation may also increase slightly.

It is known that the country’s GDP (gross domestic product) as of the current financial year is about 50 lakh crores of taka. However, there is no precise account of how much money is traded in the festival.

A survey has been conducted by FBCCI, the main body of traders, on the economics of fasting and Eid festival. According to the survey, an additional 1 lakh 50 thousand crores of transactions are being added during fasting and Eid. According to the survey, about 40 thousand crore rupees are being added to the apparel market. An additional 27 thousand crore rupees is added to the commodity market. 67 thousand crores are coming for Zakat and Fitra. 800 crores in the transport sector. 4 thousand 500 crores are spent on travel and entertainment around Eid.

Apart from this, the activities of several other sectors will increase the flow of money. This includes bonuses for 1.4 lakh government officials and employees, 6 million shop employees and 7 million direct and indirect workers in the garment and textile sector. There is also remittance money sent by expatriates. It is already known that the remittance of 200 million dollars has arrived in March. 22 thousand 110 crores in local currency as 110 taka per dollar. There is talk that remittances may increase further this month.

Among the three festivals discussed in Bangladesh, Ramadan comes first. In this month, people’s demand for products increases. Especially iftar is used, the demand for such products increases several times. These include edible oil, chickpeas, dates, onions, sugar, pulses, eggs, fruits, vegetables and other items. During Ramadan, hundreds of thousands of people across the country do seasonal business based on Iftar. It has a positive effect on the economy.

At the end of Ramadan comes Eid-ul-Fitr, the biggest religious festival of Muslims. The flow of money naturally increases during Eid. Bonuses of public and private employees, business money, remittances from expatriates and Zakat-Fitra add about 1.5 lakh crores to the economy. A part of it has already gone to the village.

The sale of a part of rice or other crops stored in farmers’ houses has also started to meet the additional expenses of Eid and fasting. We have also seen a boom in the business of seasonal fruits like watermelon. Also, as the financial year has come to an end, there has been a rush to spend money on various government development projects. As a result, money flows towards the village. However, many people say that most of this money is spent on luxury. And some part is going to various small and cottage industry based production sectors of the village. Our three festivals are of three types. Eid is the biggest religious festival for the majority of people in the country.

There is no doubt that the flow of money increases the most during this fasting Eid. This money is increasing in the entertainment sector including clothing, consumer goods, hobbies, travel. So it plays a big role in the economy. The size, type and scope of the economy surrounding festivals has increased more than ever before. People spend a lot of money around this festival. Producers, importers, traders – everyone is benefiting.

There is a positive impact on the economy as a whole. However, there is a risk of inflation. Due to the increased flow of money, the price of goods will increase. There is also a risk of some people having problems with it.

It is known that a large amount of consumer goods have been imported to meet the additional demand. These are now being sold in the retail market. During Eid-ul-Fitr, more money is spent on buying new clothes. In the markets, clothes are being sold according to the needs of people of all ages. At this time, the demand for inner wear increases at a great rate.

Meanwhile, most of the people of the city go to the village at the end of the fast to celebrate the Eid festival. During this time, the movement of goods and passengers and ships increased tremendously. This also increases the flow of money.

On the other hand, many people go to different places in the country and abroad for entertainment centered on Eid. As a result, additional money flows into the tourism sector. Overall, these activities generally increase the effect of extra money in this month compared to other months.

On the other hand, we have almost a monopoly in the world market in clothing. There is a demand for it in Bangladesh as well.

The innerwear market is a major driver of the Eid economy. During this time, the sale of clothes in the shops increased three to four times. The largest supply of innerwear comes from the innerwear market at Urdu Road in Old Dhaka. From this market, the country clothes are being supplied to various markets of Dhaka and the departmental and mufswal markets of the country.

There are 450 clothing shops here. Although the size of the shops is very small to the eye, there is an investment of over crores of rupees in each shop on the occasion of Ramadan and Eid. The country’s boutiques and fashion houses are quite busy. To catch the Eid market, many companies have taken loans from banks and made additional products.

Also, we see that Eid actually increases the demand for all kinds of everyday products. Notable among these are edible oil, meat, sugar, dal, semai and onion. As a result, the import of these products also increases. During fasting and Eid, the demand for edible oil is around 300,000 tons, sugar 200 to 350,000 tons, pulses 60 to 70000 tons, gram 50-60000 tons, dates 15000 tons, onions 350000 to 40000 tons and garlic. About 80 thousand tons. In order to import these products, traders are provided with a large sum of money from the bank in addition to their own money.

This year 1.4 lakh government officials and employees are getting Eid bonus in the light of eighth pay structure. These include three forces, police, BGB, officials and employees of state-owned banks. Besides, private offices are also giving bonuses in their own structure. In addition, there are bonuses for about 7 million workers in the clothing and textile sector; All of which is added to the Eid economy.

Bonuses for store employees across the country are playing an important role in the Eid festival economy. According to Bangladesh Shop Owners Association, there are 20 lakh shops, shopping malls, commercial establishments in the country. An average of three to six million manpower is working in a shop.

An employee is given a bonus of 6 thousand to 15 thousand rupees. According to that, the workers of this sector are getting an average bonus of 8 thousand taka and 4 thousand 800 crore taka; All of which are adding to the Eid festival economy.

The third festival includes Pahela Boishakh. It is the universal festival of Bengali. Irrespective of religion, everyone should become a Bengali on this one day. There has been no institutional research yet on the exact size of the Baisakh economy. However, according to sources, the potential amount of the transaction will be 15 thousand crores.

The government has also given bonus this year for the festival. Due to Corona and Ramadan, the festival of Baisakh was not celebrated in the last three years. This time after the Eid holiday, the main festival, Panta-Hilsha, will be continued. As a result, the wind of Baisakh has already hit the economy. The festival will conclude with various designs of clothes, variety of Bengali food, exchange of greetings on cards and mobile phones, fair and Halkhata. Famous companies are offering special offers on Boishakh.

Banks have attractive offers on credit cards. Bengali dresses of rich colors and designs in fashion houses. Houses are crowded every day to buy new clothes. From the footpaths to the famous shopping malls, the impression of Boishakh is everywhere. Various companies have given special discounts to attract buyers. Customer interest in online shopping has grown tremendously in the past few years. Traders of daily commodities, flowers, pottery and jewelery are not far behind. From villages to cities, preparations are being made to welcome the Bengali New Year in a frenzy around Boishakh. Numerous fairs are being organized in Gramganj. Baisakhi Tantmela has started in different places of the city. The transactions of the economy are increasing several times around these activities.

Most of the purchases in Baisakh are clothes. 20 percent of the annual purchases are in Baisakh. 60 percent in two Eids together. The rest is all year round. Saree, Punjabi and Fatwa are sold more. At this time, the shops have all kinds of Baisakhi dresses and clothes for elite and middle income buyers, especially the showrooms of famous brands. It has been seen that various professions are being sold at a discount of 5 to 50 percent. Apart from this, the price of clothes will not be higher compared to the last time, say those related to this sector. All things considered, there will be a new momentum in the country’s economic activities around Baisakh.