Flour retailers nick consumers despite wheat price plunge

The flour price at consumers' end is yet to match the price plunge the essential commodity has posted at farm and wholesale levels over the past one month.

According to market watchers and consumer rights activists, excessive profiteering by retailers has been depriving consumers of getting benefitted from the sharp price decline of the country's second major staple food at primary sources.

On Tuesday, New Age found a two-kilogram packet of coarse flour of the popular brands was being retailed for Tk 66 to Tk 68, down by Tk 1 or 2 per cent per kilo over the past couple of weeks.

But the price of wheat has nosedived by Tk 120 to Tk 150 per maund (37.3kg) or Tk 3.2 to Tk 4 per kg over the past four/five weeks, said wholesalers in Narayanganj and Chittagong.

On Narayanganj wholesale market, fine-grade Canadian wheat was being sold on Tuesday for Tk 940 to Tk 950 a maund and the inferior-grade Black Sea and South American varieties for Tk 740 and Tk 760 per maund respectively.

The country's annual demand for the grain ranges between three million and five million tonnes, at least two-thirds of which is met with imported wheat.

The wheat prices started to mark a downward curve since the end of March with domestic wheat-harvesting coming into full swing, said Abul Hashem, a trader at Thakurgaon, on Tuesday.

Another wheat trader, Ali Akbar of Khatunganj, said the price of wheat would fall further as the latest crop across the globe, including India, was good and the forthcoming ones were also predicted to be plentiful, which meant its import cost would continue to slide in the foreseeable future.

Emdadul Hauqe, a senior member of the Consumers Association of Bangladesh, said wheeling and dealing in the retail market had for long been a common malpractice. 'But all the subsequent governments have failed to eliminate this distortion in the supply chain, leaving the consumers unprotected,' he added.

Food minister Muhammad Abdur Razzaque told New Age in last week that as flour prices remained unjustifiably high on the retail market, the government was going to launch an open market sales programme of the major staple.

'We have decided to sell flour in addition to rice at OMS outlets as the price of flour is not decreasing on the local market, although wheat prices have fallen significantly on the global market,' he said.

The government has decided to sell flour at Tk 20 per kilo at OMS outlets.

Source: New Age

DCCI opposes proposed property tax

Dhaka Chamber of Commerce and Industry on Wednesday opposed re-introduction of wealth tax in the name of property tax that was proposed by National Board of Revenue which would be effective from fiscal 2012-13.

'It is illogical to impose property tax reviving the Wealth Tax Act-1963 that was repealed in 1999 as the provision of imposing such tax was considered regressive,' the trade body's president Asif Ibrahim told reporters at a press meet at its auditorium organised to present proposals for the forthcoming national budget.

'The government collects huge amount of money for the registration of land when the ownership of land is transferred from one hand to another,' Asif said, asking 'why, then, the landowner should pay the extra money as tax?'

The DCCI president presented the recommendation paper which contained a total of 64 different proposals for income tax, import and supplementary duties and value added tax.

The paper said that tax network and tax to GDP ratio should be increased as the country has now only 3 million people holding tax identification numbers. The government should ease the method of income tax return and achieve the confidence of the taxpayers.

The DCCI recommended that the government should extend the tax holiday facility up to 2015 and the industries installed outside export processing zones should be bought under the tax holiday facility.

It said that the tax collected on the interests achieved from deposit bonds should be considered as the final tax liability.

DCCI recommended that the knitting, dyeing and weaving industries should be considered as export sector and given the facility of 0.40 percent advance income tax as their final tax.

The DCCI president requested the government to increase the ceiling of tax-free income to Tk 2,25,000 from the existing Tk 1,65,000.

The chamber requested the NBR to reduce the corporate tax on profit for the listed companies from 27.5 percent to 20 percent, maintain a gap of 10 percent between the listed and non-listed companies for tax on profit and reduce the tax rate from 42.5 percent to 40 percent for the banks and financial institutions.

It also called for setting the import duty on capital machinery at zero percent, gradually reducing the duty on basic and raw materials to zero percent with a 3 percent duty for the next fiscal, 12 percent duty on intermediary products, and 25 percent on finished products.

The chamber also requested the government to remove the indiscriminate imposition of 5 percent regulatory duty on finished products.

The DCCI president urged the government to waive import duty on LPG mixture (main material for LPG cylinder), cylinder, valve and regulator to popularise the use of LPG gas for cooking.

DCCI senior vice-president TIM Nurul Kabir, vice-president Nasir Hossain and treasurer Abu Horaira also spoke at the meeting.

Syed Mosharraf Hossain, Hossain A Sikder, Niaz Rahim, Mahabub Anam, Waqar Ahmad Choudhury, Nasiruddin Khan and Absar Karim Chowdhury, among the directors, were present at the press meet.

Source: New Age

Reduced corruption key to Asia’s rise: ADB

Reducing corruption and improving government accountability are the greatest challenges to making Asia the world's wealthiest region by 2050, the Asian Development Bank said Wednesday.

The continent is undergoing a historic transformation, according to a study for the bank unveiled at its annual meeting in Vietnam.

'If it continues to grow on its recent trajectory, it could, by 2050, account for more than half of global gross domestic product, trade and investment, and enjoy widespread affluence,' the report said.

Asia's proportion of global GDP, rising from 27 per cent last year, would match its share of global population and a per capita income of $38,600 would leave the region as well off as Europe is today, it said.

Countries from the Pacific Ocean to Central Asia face many challenges if they are to achieve this, but underlying them all is a need for stronger institutions of governance, says the report, which is aimed at regional policymakers and business leaders.

'The recent deterioration in the quality and credibility of national political and economic institutions (illustrated by rising corruption) is a serious concern', says the bank, which will issue a more detailed version of the study in August.

Data from the World Bank Institute showed a 'clear retreat in voice, accountability and political stability' in the region between 2008 and 2009.

While some places in Asia, notably Singapore and Hong Kong, are rated as among the world's least corrupt, many others are among the worst.

'Asia must modernise governance and retool its institutions with an emphasis on transparency, accountability and enforceability,' the ADB report says.

Source: New Age

GMG resumes flight to New Delhi

Private carrier GMG Airlines has recently resumed its flight from Dhaka to New Delhi.

Re-entering New Delhi market is a part of GMG's expansion plan. The airline is going to offer the most competitive fair in the route compared to other local and foreign airlines, said a news release.

Shahab Sattar of GMG Airlines said re-entering into New Delhi market was a big boost for the airline considering the large number of Bangladeshi people travelling to and from New Delhi.

'GMG will soon add more routes and procure aircrafts to meet the growing demands of passengers,' he said.

With eight international and five domestic destinations, GMG Airlines has got a total number more than 230 flights per week. GMG's international route consists of Kuala Lumpur, Bangkok, Kathmandu, Kolkata, Dubai, Jeddah and Riyadh. In Domestic operation it serves Dhaka, Chittagong, Cox's Bazar, Sylhet and Jessore.

GMG Airlines now operates with three Canadian Bombardier Dash-8 on domestic and Kolkata routes. Besides it has two Boeing 767-300 and three McDonnell Douglas aircraft for the regional operation.

Source: New Age

EU-IMF rescue deal for Portugal hangs on terms

Portugal is now the third eurozone debt rescue case, with an EU-IMF bailout of 78 billion euros to avoid default, but the conditions as well as the key reaction of opposition parties remain unclear.

'The government has reached a good agreement that defends Portugal,' outgoing Prime Minister Jose Socrates announced on television, but the country got a rough ride on Wednesday when it had to pay sharply increased rates to borrow money.

A deadline looms on June 15, six weeks away, when Portugal must redeem old loans of nearly 5.0 billion euros ($7.3 billion) and avert default. The country now joins Greece and Ireland as eurozone lame ducks on bailout crutches held out by the EU, ECB and IMF.

The experts from the three institutions were meeting opposition right-wing parties on Wednesday to obtain their support for the corrective measures which condition the bailout if they win an early election on June 5.

The International Monetary Fund, the European Central Bank and the European Union had taken care to include the main opposition parties in their consultations leading up to the agreement.

In this fevered climate, Portugal went ahead with an operation to raise funds for three months, and did borrow 1.117 billion euros ($1.65 billion) but had to pay interest of 4.652 per cent, sharply up from 4.046 per cent when the last such issue was made on April 20.

At Carregosa Bank, bond strategist Filipe Silva said: 'There is no doubt that the rate is very high for such a short-dated issue.'

Socrates announced the deal late on Tuesday after long negotiations with auditors from the three external bodies.

Source: New Age

BMW reports 4-fold profit surge in Q1

German luxury carmaker BMW says first-quarter net profit rose almost fourfold to euro1.21 billion ($1.79 billion) as sales climbed all around the world, but particularly in China.

Profits were up from last year's euro324 million. Revenues grew 29 per cent to euro16.04 billion.

BMW, which includes the Mini and Rolls-Royce brands, saw especially big sales increases in Asia, where it sold 53 per cent more cars, including a 72 per cent jump in China.

Wednesday's results confirmed a strong quarter for Germany's export-oriented carmakers, whose luxury products are selling strongly in China's booming economy. First-quarter earnings for Daimler AG, maker of Mercedes-Benz cars, nearly doubled to euro1.18 billion and Volkswagen AG, maker of the Audi luxury brand, saw profits more than triple to euro1.7 billion.

For BMW, sales also grew significantly in Europe, despite an uneven recovery there, and in North America.

BMW sold 13 per cent more cars in Europe, which remains its biggest market with 200,000 vehicles out of the company's overall sales of 383,000. The European luxury segment has held up better than the car market as a whole, which shrank slightly.

Source: New Age

African economies must plug in globally: experts

Africa must accelerate links to global markets and improve competitiveness to sustain the strong growth expected this year, experts at the World Economic Forum on Africa said on Wednesday.
African economies weathered the global economic storm in 2008 and have since resumed strong growth — a positive showing which paradoxically highlighted Africa's weak presence in global financial markets, said Jennifer Blake, head of WEF's competitiveness centre.
'It is also a reflection of the fact that African economies are not sufficiently integrated into global markets,' Blake said at the launch of the third Africa Competitiveness Report.
'While this sort of sheltered them over the shorter term, this will be a hindrance for economic development going into the future.'
The International Monetary Fund forecasts that sub-Saharan Africa will grow by about 5.5 per cent this year, one of the strongest showings in the world, but cautions that the region could suffer if the global economy falters again.
Competitiveness 'is going to make the difference whether Africa's growth is sustained or not', said World Bank chief economist for Africa, Shantayanan Devarajan.
'Competitiveness is the key to our employment strategy as well.'
By several measures, African economies are doing remarkably well.
Consultancy Ernst & Young said on Tuesday that foreign investment in Africa grew by 87 per cent in the past decade, as the continent has offered strong growth rates and high returns.
Foreign direct investment jumped from 338 new projects on the continent in 2003 to 633 in 2010, it said.
Ten African countries attracted 70 per cent of those projects: South Africa, Egypt, Morocco, Algeria, Tunisia, Nigeria, Angola, Kenya, Libya and Ghana.
'Africa has remained an attractive investment destination throughout the global downturn and has managed to maintain its relative share of global investment flows as a result,' the company said.
'Strong growth in new projects into Africa is expected from next year with (foreign direct investment) inflows forecast to reach $150 billion by 2015.'
According to the firm, investments started picking up in 2008, at the height of the global downturn, after a drop in previous years.
'There are of course parts of the continent where there are real and perceived barriers to investment due to political instability and corruption,' said Ajen Sita, managing partner for Africa at Ernst & Young.
'These are obvious challenges but those investing in Africa, and Africans themselves, have much to be positive about,' he added.
'Although the African share of global (foreign direct investment) has grown over the past decade, we believe that it does not reflect the increasing attractiveness of a region that has one of the fastest economic growth rates and highest returns on investment in the world,' said Sita.
The 21st WEF on Africa in Cape Town is set to discuss how sub-Saharan Africa can sustain growth and increase its economic potential, with the first session opening later Wednesday.
The three-day forum will be attended by 900 delegates including regional leaders of governments and businesses.
Source: New Age

ICCB for assured energy supply to attain higher GDP growth

Petrobangla in last two years failed to explore and develop any new gas field, according to the editorial of the news bulletin of International Chamber of Commerce-Bangladesh released on Monday.

It mentioned that continued failure of GTCL in implementing gas transmission infrastructure would prolong gas crisis. Therefore, expeditious implementation of high pressure gas pipeline compressor project and other gas infrastructure of GTCL are urgently needed, it said.

If Bangladesh desires to become a middle income country, it must aim for a GDP growth of 8 per cent or more and that is possible only if there is assured energy supply and related physical infrastructure, the ICCB bulletin said.

According to projections, growth during the current fiscal is expected to be 5.0 to 6.7 per cent. However, it was earlier projected that with adequate energy supply and certain physical infrastructure in place, Bangladesh could attain double digit growth; over a shorter period, it said.

By all indications, the country weathered the global crisis largely unscathed and is ready for a robust expansion of output and investment; as one of the emerging market economies, it said.

Source: New Age

World luxury market to grow 8pc: study

Global luxury sales should grow eight per cent this year to $185 billion but Japan's market will contract, according to a study by research group Bain&Company released Tuesday.

The forecast was raised from an earlier estimate of growth of between three and five per cent but would still be lower than last year's result of 12-per cent growth in the luxury market, as the world recovered from the economic crisis.

Bain said growth would average five to six per cent a year until 2014.

Growth in the Chinese market will be 25 per cent this year, it said, adding that continental China without Hong Kong and Macao was set to become the third biggest luxury market after Japan and the United States within five years.

Source: New Age

Banglamoti rice cultivation gains popularity

The cultivation of Banglamoti variety of rice has been gaining popularity among the farmers in Bagerhat creating a new hope for them.

According to farmers, BRRI-50, invented by Bangladesh Rice Research Institute, known as Banglamoti rice, is suitable for boro season. The size of the variety is better than Indian and Pakistani 'basmati rice'.

Officials in the Department of Agricultural Extension in Bagerhat said this newly developed variety of rice could become a blessing for those farmers of southern region who incurred huge loss after rice cultivation due to salinity in soil.

The commercial cultivation of Banglamoti had been expanding day by day as farmers achieved success in experimental cultivation, he said.

Two plots were made to cultivate Banglamoti rice on experimental basis at village Shyamnagar at Fakirhat

in 2010.

As a huge quantity of rice was produced in the plots, some 101 hectares of land were brought under cultivation this season where farmers achieved 6600kgs rice per hectare.

Mehedi Hasan, a farmer of village Aruadanga at Fakirhat, said he had cultivated Banglamoti rice on three hectares of land this season as its cultivation seemed profitable than other varieties of rice.

Bagerhat DAE deputy director, Abdul Gafur, said per hectare production cost of the variety was Tk 60,000 and farmers could earn profit of Tk 2 to 2.5 lakh from each hectare, he said. 'The seeds of Bangla-moti rice are being preserved to expand its cultivation in nine upazilas of the district,' he said.

Source: New Age