Kazi Zahidul Hasan :
Rampant smuggling of food products into Bangladesh by an organized syndicate is threatening to put Swiss-headquartered global food and beverages giant Nestlé’s local operation.
The smuggling syndicate is illegally importing and selling various food products at lower prices, making Nestlé’s Bangladesh operation unsustainable.
The impact of smuggling has forced Nestlé management to write to government seeking intervention.
In a letter to the concerned ministries and agencies dated August 28, Nestlé Bangladesh’s Managing Director Deepal Abeywickrema said, “illegal imports” were damaging the company as well as foreign direct investment (FDI) and consumers in Bangladesh.
Nestle Bangladesh Limited commenced operation in 1992 and since then the company has invested 80 million CHF (Swiss franc) or Tk 7.0 billion in its facilities here. In 2017, Nestlé Bangladesh directly and indirectly contributed Tk 4.80 billion to the national exchequer.
The company has also been continuously developing towards a healthier generation through high quality products under global brands like NIDO, MAGGI, NESCAFE, CERELAC, LACTOGEN and NAN.
The current annual turnover of the company stands at Tk 14 billion and it has been recongnised as the best taxpayer in food category consecutively in 2016 and 2017.
“It has been unfortunate that a large scale of illegal imports (also termed as parallel import) have been causing huge concern, which is not only shrinking our legitimate market but also depriving the government from getting legitimate tax/duties and may also cause food safety concerns for the consumers in Bangladesh.
We want to highlight the issues relating to these illegal imports which unless addressed may pose serious threat to FDI in Bangladesh,” wrote Deepal Abeywickrema.
“Nestlé Bangladesh is rapidly going out of business due to rampant import of illegitimate food products,” Naquib Khan, Director Corporate Affairs, Nestle Bangladesh Limited, told The New Nation on Tuesday.
He said products imported through illegal channels from Dubai, Malaysia, Indonesia and Thailand are being offered to customers at much lower prices than what the company produce and sell in the market turning its business unsustainable. “This is truly disturbing. Nestle Bangladesh is supposed to be getting state protection as the company is promoting foreign direct investment, jobs and doing business following laws of the land,” he said, adding, “Lack of state protection is also damaging foreign investment in Bangladesh. The government should act promptly paying heed to our concern.”
Naquib Khan further said that preventive measures should be taken at the customs end by registering food products under legitimate import. “Proper enforcement of laws can also significantly prevent the illegitimate import.”
He confirmed writing to government seeking its intervention before severe damage is done to a growing foreign company operating in Bangladesh.
