Karisma Kapoor opens N’Queens Furniture

Bollywood actress Karisma Kapoor on Thursday inaugurated N'Queens Furniture at Baridhara in the capital.

N'Queens proprietor

Mir Nizamuddin Ahmed and Bollywood actor Chanki Pande, among others, were present on the occasion.

Karisma Kapoor praised the designs of the furniture and said Bangladesh was very good at making world class furniture.

Nizamuddin Ahmed expressed the hope that N'Queens Furniture would contribute substantially in establishing itself as a producer of international standard furniture both in quality and design.

Source: New Age

Gold price hits record high as global inflation spikes

The price of gold reached a record high close to $1,480 an ounce in trading on Friday with investors piling into the safe-haven precious metal amid spikes to global inflation and fresh eurozone debt worries.

Gold struck an all-time peak of $1,479.35 an ounce in early Asian trade, beating the previous high reached Monday by just over a dollar.

'It seems investors are still more concerned about the threat of debt-default by peripheral EU nations and rising inflation indicators following higher-than-forecast inflation readings from India and China overnight,' said James Moore, analyst at research group Fast Markets.

The precious metal hit the new pinnacle shortly before China said that its inflation had hit a 32-month high, suggesting Beijing's efforts to rein in soaring costs are still falling short.

The consumer price index rose 5.4 per cent year-on-year in March—the fastest pace since July 2008 and well above the government's 2011 target of four per cent—and 5.0 per cent in the first quarter.

World Bank president Robert Zoellick had on Thursday already warned that rising food prices had reached dangerous heights.

Official data on Friday meanwhile showed India's inflation rate unexpectedly accelerated in March, raising pressure on the central bank for a further hike in interest rates.

And separate figures published before the weekend showed prices rocketed to 2.7 per cent last month across the debt-ravaged eurozone.

Source: New Age

Asia, Europe data point to mounting inflation risks

China and India reported higher-than-expected inflation readings on Friday, giving fresh ammunition to central bankers and investors alike who are worried about mounting price pressures in the global economy.

Consumer prices in the euro zone also picked up more than expected, while figures due later in the day from the United States are expected to show a similar trend, with the inflation rate still moderate but steadily rising, not least because of higher food and energy costs.

Prices of oil and grain, in turn, are climbing in part because of strong growth in China, India and other emerging economies, which have shown the developed world a clean pair of heels since the global financial crisis.

'The weakness in markets this week is expected after the smart comeback we have seen recently, with inflationary concerns again coming to the forefront,' said Jan Lambregts, global head of financial markets research at Rabobank.

Consumer price inflation in China quickened to 5.4 per cent in the year to March, the fastest rate since July 2008, from 4.9 per cent in the first two months of the year.

In India, the wholesale price index, the main inflation gauge, rose 8.98 per cent in the year to March, up from 8.31 per cent in the 12 months to February and beating market projections of an 8.36 per cent reading.

Economists expect the central banks of both countries to tighten monetary policy further in short order to dampen inflationary pressure.

A rise in the proportion of deposits that Chinese banks must hold in reserve, rather than lend out, could be imminent after premier Wen Jiabao in midweek reaffirmed his determination to keep a lid on prices.

Core inflation, excluding food and energy, was the highest in China in a decade. In India, too, a sharp upward revision to figures for January has led some economists to the conclusion that underlying price pressures are greater than they had thought.

'It seems that inflation trajectory has changed. The expected decline in inflation is just not happening and looks like we have underestimated the underlying pressure on prices,' said Ashutosh Datar, an economist at IIFL in Mumbai.

'More monetary tightening is inevitable after today's data and the case for a 50 basis point hike in May is strengthened,' he added.

Final March figures for the euro zone showed inflation jumped to 2.7 per cent from 2.4 per cent in February, slightly more than a preliminary forecast and the fourth month it has been above the European Central Bank's target of 2 per cent.

The ECB was the first of the three major Western central banks to raise rates last week and it is expected to move again by July despite concern over the damage higher rates will do to economies like Portugal and Ireland struggling with high debt.

'The big news in these numbers is that core inflation rose noticeably,' said ABN Amro analyst Nick Kounis. 'Although we expect a rate increase at the July meeting, the balance of risks is tilted toward an earlier move.'

The People's Bank of China, the central bank, has increased benchmark interest rates four times since last October and has required the country's big lenders to freeze a record 20 per cent of their deposits.

Dong Tao, the chief China economist for Credit Suisse, expects tightening to resume in the second half of the year and the rate banks offer on one-year deposits to rise another 1.5 percentage points by the end of the year.

'In our view, China is by no means near the end of the current tightening cycle. Food inflation is transitory, but service inflation and wage inflation are structural,' he said.

That bodes ill for Western economies that are big buyers of manufactured goods assembled in China. If imported inflation keeps climbing, central bankers will have to press down domestically generated prices if they want to hit their overall inflation targets.

Economists expect annual consumer price inflation in the United States in March quickened to 2.6 per cent, from 2.1 per cent in February.

Source: New Age

Good wheat yield fails to bring boons for farmers

Kazi Azizul Islam

The country's wheat production has been good this year.

Although farmers are happy with the increased yield yet wheat price continues to remain low as its global price has marked as a fall, market watchers said.

Wheat harvest, which is set to complete soon, so far has been very good, said traders and agriculture officials.

'Wheat harvest is very good this year. The farmers are telling about increased yields and quality grains,' said Abul Hashem, a trader at Jaduranir Haat in north Thakurgaon. Northern districts – mainly Thakurgaon, Rangpur, Dinajpur, Panchagarh – account for the major portion of the country's wheat production.

At Jaduranir Haat, the newly harvested half-dried wheat was traded on Monday for Tk 19 to Tk 20 per kilogram or Tk 710 to Tk 740 a maund (37.3 kg), same as that in the corresponding period of the last year. Besides, the price also has not marked any increase since the new stock wheat hit the market three weeks back, market sources said.

An ample supply of wheat to the market by importers and the government stocks are keeping the price of newly harvested local wheat low, said Narayanganj Flour Mills Association president Shiekh Wazed Ali.

Wazed said, 'Importers have sizeable stocks of wheat and are desperate to release the stocks as the wheat price has declined significantly on the international market in the past few months.'

'Wheat delivered from the government stocks to different social safety net, food for work and development programmes are also coming to the market, which also is keeping the price low,' he added.

In Narayanganj on Monday, the price of new stock local wheat in bulk trade ranged between Tk 750 and Tk 800 per maund depending on quality, including level of moisture content. Locally produced wheat is rated in the market as a medium grade one.

On Monday, imported old stock of inferior grade Black Sea wheat was selling in Narayanganj for Tk 770 to Tk 780 per maund and fine wheat from Australia and Canada for Tk 950 to Tk 970.

Flour millers in Narayanganj admitted that, following the recent decline in wheat price on the international market, the price of imported wheat, depending on the grades, had declined by Tk 100 to Tk 250 per maund.

Bangladesh has to import two to four million tonnes of wheat a year, spending several hundred millions of dollar. So, the market players predict that a good domestic wheat harvest this year will help keep its price low, bringing some respite for the consumers.

A senior official at the Field Service Wing of the Department of Agriculture Extension told New Age on Monday that their reports also indicated that wheat output might increase this year significantly.

'Favourable weather was a key reason for this year's good harvest. Besides, farmers also had paid much attention to their crop as wheat price was very high last year,' he said.

According to the DAE data, this year wheat has been cultivated in 400,000 hectares of land with the output estimated at 950,000 tonne. But importers and big wheat traders, who keenly watch local production and market trends, estimate that the wheat output this year will be more than one million tonne.

Source: New Age

Supply shortage pushes egg price up

Hosain Ahmad

The prices of sugar and loose flour have eased a little but rice prices have remained unchanged on the city market over the last week, while the price of egg has inched up because of a supply dearth.

The supply of eggs has decreased as many poultry farms have been closed down due to bird flu attack, farmers and wholesalers said.

Eggs were being sold for Tk 78 a dozen at Polashi and Karwan Bazar kitchen markets on Friday, rising by Tk 6 over the week.

Abul Kasem, a retailer at Polashi Bazar, claimed the wholesalers had raised the egg price claiming fall in production.

Masum, a wholesaler at Tongi Natun Bazar, said, 'Once around 60,000 eggs used to be supplied every day to the wholesale market from the farms in Pubail area but that entire supply stopped 15 days ago as the farms in that area were closed down because of bird flu attack.'

Masum said, 'I used to buy 100 eggs for Tk 560 from the farmers, for which I now have to pay Tk 590. Now I have to sell 100 eggs for Tk 610.'

Bangladesh Egg Producers' Association organising secretary and Maa Enterprise owner Md Shahidul Islam Shahid told New Age that many poultry farms had been closed down following a spread of bird flu in different areas.

Shahid said, 'Since mid-February to date around 10,000 of approximately 30,000 poultry farms in the country have gone out of operation as layer chickens of the farms died from bird flu.'

He alleged importers were bringing in bird flu virus-infected eggs from India.

'By selling eggs for Tk 570 a hundred to the wholesalers the poultry farmers are incurring a loss of Tk 40 as their production cost is Tk 610,' he said, adding, 'We have to sell eggs at the price set by the wholesalers.'

The prices of all varieties of rice have remained unchanged over the last week. On Friday, the price of coarse rice at Karwan Bazar kitchen market ranged between Tk 35 and Tk 37 per kilogram, medium-grade rice between Tk 38 and Tk 42 per kg, and fine varieties of rice between Tk 42 and Tk 54 a kilo.

'We expect the coarse rice price to come down a bit when the newly harvested BRRI 28 and 29 hit the market after a week,' said Abdul Mannan, a retailer at Karwan Bazar.

He said, 'The amount of coarse rice harvested so far is not adequate enough to hit the Dhaka market after meeting local demands. We think it will hit the market in the next week with full force.'

The price of loose flour crawled down to the range of Tk 27 to Tk 30 per kg from that of Tk 29 to Tk 31 over the last week, while the price of packaged flour remained unchanged at Tk 34 to Tk 36 a kilo.

Sugar price has inched down by Tk 1 over the week to the range of Tk 52 to Tk 55 per kilo.

There has been no change in the price of any other essential commodity on the city market over the last week. The retail price of loose soya bean oil remained unchanged at Tk 103 to Tk 106 a litre, super palm oil at Tk 94 to Tk 95 per litre, and packaged soya bean oil at Tk 115 a litre.

On Friday, the price of imported varieties of onion stood at Tk 20 to Tk 22 per kilo and local varieties at Tk 18 to Tk 22 per kg. The local variety of red lentil was being sold for Tk 90 to Tk 95 per kg and the Nepali variety for Tk 96 to Tk 102 per kilo.

The price of beef also stood unchanged at Tk 250 to Tk 260 per kilo and that of broiler at Tk 125 to Tk 130 per kg.

Source: New Age