Potato exports surge on subsidy boost

Potato exports surged 71 percent to 16,570 tonnes in the first ten months (July-April) of the current fiscal year, exceeding the total quantity of the tuber exports last year, according to the Plant Protection Wing of the Department of Agricultural Extension (DAE).

The buoyancy in exports came after the government, in February, promised to double cash subsidy for potato exports to 20 percent to help farmers recover from losses caused by a slump in prices amid a bumper harvest this year.

Exporters linked the rise in exports to the government assurance of raising the subsidy. The opening of export opportunities to new markets -- Russia, Vietnam and Sri Lanka -- also facilitated the export boom, they added.

''To bolster the exporters' confidence, the government should issue circulars immediately in line with its promise of raising cash subsidy and maintain the upbeat trend,'' said Md Jasim Uddin, chairman of Bangladesh Cold Storage Association.

The exporters said the increased demand for the tuber for exports along with storing of 35 lakh tonnes of potato at cold storages, has helped the prices rebound.

On month-on-month basis, the prices of potato rose 16.67 percent to Tk 9-Tk 12 a kilogram in the city markets, according to Trading Corporation of Bangladesh.

Plant Protection Wing data showed that 9,687 tonnes of potato were mainly shipped to Malaysia and Singapore in the fiscal year 2009-10. Along with these markets, this year, exports have started to such new markets as Russia, Sri Lanka and Vietnam.

SA Quader, managing director of Agri Concern Ltd, said a fall in output in Europe, especially in Russia, has accelerated the demand for potato from South Asian countries including India and Pakistan.

''A vacuum has been created on the global market. Russia has suffered a shortfall of 40 lakh tonnes because of drought,'' said Quader.

The exporters are looking for new markets as farmers had a production glut through the second year. Last year, farmers bagged 81 lakh tonnes of potato. The current year's production is expected to exceed the last year's level.

''We are also trying to export to South Africa,'' added Quader, urging the government to fulfil its promise of giving 20 percent cash subsidy.

According to the exporters, the vast exports of the tuber crop are usually done in the February-April period.

Source: The Daily Star (May 5, 2011)

Inflation affects development goals, says economist

Rising inflation affects the development goals of the country, said a leading economist yesterday.

The government must contain inflationary pressure to safeguard the economy from any major harm, he said.

Mustafa K Mujeri, director general of Bangladesh Institute of Development Studies, said the prices of commodities are increasing gradually, which have to be brought under control.

"If it continues, our target to reach millennium development goals (MDGs) may be delayed by another five years," he said. "The main factor of the inflation is that it has affected our social goals."

He was speaking at the global launch of 'Economic and Social Survey of Asia and the Pacific 2011' at the Cirdap auditorium in the city.

The average consumer price index stood at 7.9 percent in 2010 against 6.7 percent in 2009, but Mujeri said he thinks the figure could be higher.

Source: The Daily Star (May 5, 2011)

Friends of Grameen sad at SC decision

Friends of Grameen yesterday said it is deeply disappointed and saddened by the decision of the Supreme Court of Bangladesh that upheld the central bank's decision to remove Professor Muhammad Yunus from Grameen Bank.

The Supreme Court yesterday rejected two appeals made by Grameen Bank and nine of the directors of its board, challenging the High Court decision to remove Prof Yunus as managing director, for exceeding mandatory retirement age.

"Today, we are extremely preoccupied about the independence of the bank and of micro-credit institutions in Bangladesh," said Maria Nowak, president of the executive committee of Friends of Grameen.

She said alarming recommendations seem to be emerging from the report of the government-appointed review committee, leaked to the press last week, such as changes in the statutes, reconsideration of borrowers' role in the governance of the bank and extension of government control over Grameen's sister organisations, such as Grameen Telecom.

"We fear that amending the structure and governance of a democratic and egalitarian organisation poses a serious threat, with devastating ramifications on microcredit and social business activities in Bangladesh," said the founder of French microfinance organisation AIDE.

The international platform set up to promote microcredit reaffirmed their strong support to Prof Yunus and to the independence of the Grameen Bank.

It said Yunus, known across the world as the 'Banker to the Poor', established the democratic framework of the bank, making it a unique and powerful microcredit model, replicated across the world.

Over the last three decades, the pioneering and innovative work of Grameen Bank has enabled over 80 lakh people from rural communities to lift themselves out of poverty, thanks to small business loans from the microfinance bank, said the group in a statement.

"Friends of Grameen" aims to promote microcredit and social business, both championed by Dr Yunus.

Source: The Daily Star (May 5, 2011)

ESCAP projects 6.4pc growth for Bangladesh

The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) yesterday projected the economy of Bangladesh to grow 6.4 percent in 2011.

"The expected growth is to be supported by improved growth in the agricultural sector, recovery in export growth with diversification into new markets, including the emerging economics, and an improved situation in power and gas supplies," said a survey by ESCAP styled Economic and Social Survey of Asia and the Pacific 2011.

The report was launched at an event at the Cirdap auditorium. The report was simultaneously published in 31 cities across the region.

Clovis Freire, one of the authors of the report, presented the report. Mustafa Kamal Mujeri, director general of Bangladesh Institute of Development Studies (BIDS), Kazi Ali Reza, officer-in-charge of United Nations Information Centre in Dhaka, also spoke.

Mujeri said the economy of Bangladesh demonstrated considerable resilience despite the global economic crisis, as its GDP grew by 5.8 percent in 2010 on top of the 5.7 percent growth achieved in 2009.

The survey also projected 9.5 percent GDP growth for China in 2011, 8.7 percent for India and a 2.8 percent for Pakistan.

According to the survey findings for Bangladesh, Mujeri pointed out some upcoming challenges that include turning sustained recovery into high economic growth; creating capacity to address multiple structural imbalances and large socioeconomic and development gaps; removing key infrastructural gaps and serious ecological imbalances; and gaining dynamism from inclusive growth.

The BIDS chief said like Asia and the Pacific region, Bangladesh also needs to continue to pursue economic reforms to improve productivity, strengthen public institutions, improve economic governance and build social safety nets to protect the more vulnerable segments of the population.

He said the budget deficit situation may deteriorate in the current fiscal year, as the government attempts to tackle a complex array of problems, ranging from a shortage of power, gas and water.

The former chief economist of the central bank also cautioned the government to keep a look out, as there may be pressures on the current account balance and reserves.

Mujeri termed electricity as one of the biggest challenges for Bangladesh and several countries. He also said both short-term and long-term measures are needed to tackle the shortage.

Promotion of regional cooperation in the energy sector can benefit the participating countries enormously, he added.

He said providing subsidies, following the pattern of food stamps, electricity stamps or coupons, could be given to the poor to help pay electricity bills.

Freire said the Asia-Pacific developing economies are projected to grow at 7.3 percent in 2011, down from the 8.8 percent in 2010.

He said the survey considers how to improve regional connectivity and also indicates how the least developed countries can take advantage of this by increasing their productive capacities.

The Brazilian said due to higher food and energy prices, up to 4.2 crore people across the region may remain in poverty in 2011, in addtion to the 1.9 crore people already affected.

Source: The Daily Star (May 5, 2011)

Indo-Bangla trade fair kicks off in Dhaka

Industries Minister Dilip Barua yesterday urged the Indian entrepreneurs to invest more in Bangladesh, saying that a liberal investment policy for the foreign investors prevails here.

Barua said this while addressing the inaugural session of the second India-Bangladesh Trade Fair-2011 at Sonargaon Hotel in Dhaka.

"Our vision is to make an industrialised Digital Bangladesh by 2021. In order to materialise our dream, we have been pursuing a liberal investment and industrial policy for the foreign investors with attractive incentive packages," the minister said.

"I firmly believe, the Indian investors will come forward to invest in Bangladesh, which is a suitable place for investment," he added.

India Bangladesh Chamber of Commerce and Industry (IBCCI) with the support of Indian High Commission in Dhaka is organising the three-day trade fair to showcase the products of the two neighbouring countries.

Barua also urged the Indian government to simplify visa regime for Bangladeshi businesses and issue four-month multi-entry visa to help boost trade relations between the two next-door neighbours.

The industries minister proposed a 'free market zone' with zero tariff facility for the Saarc member countries and uphold the spirit of Safta for sustainable regional development and cooperation as well as for the betterment of the common people.

Addressing the function as a special guest, Mizoram's Minister for Industries S Haito said: "There is no insurgency in Mizoram. Bangladesh can safely invest there. Our government will ensure all-out support in this regard."

He said launching border trade would ensure trading to meet the requirements of both sides.

AK Azad, president of the Federation of Bangladesh Chambers of Commerce and Industry, said Bangladesh's export to Indian market did not increase as expected due mainly to poor negotiations from the Bangladesh side.

"It's our failure. We have failed to showcase our competitive commodities in a lucrative manner in the Indian markets. We'll have to explore our opportunities there. Nobody will offer us a ready market."

He urged the Indian government to facilitate Bangladeshi entrepreneurs so that they can invest in Bhutan to produce hydro-electric power.

Rajeev Singh, director general of Indian Chamber of Commerce, said, "As Bangladesh suffers from electricity shortages, the government can persuade the Tripura government to sell 200 megawatt of electricity next year."

He said the recent decision of the Indian government to increase duty-free access of RMG products to India will boost Bangladesh's export.

Singh proposed the third edition of the trade fair be held in Kolkata, saying it is a nice place to host an event like this.

IBCCI President Abdul Matlub Ahmed said exports to India have started growing and he hoped that it would cross half a billion taka this year.

Forty stalls of different manufacturers and exporters from Bangladesh and India are showcasing their products at the three-day show that will remain open for visitors from 10am to 8pm with an entry fee of Tk 20.

Source: The Daily Star (May 5, 2011)

IBCF re-elects top brass

Islamic Banks Consultative Forum has recently re-elected Abu Nasser Muhammad Abduz Zaher chairman and Md Nazrul Islam Mazumder vice chairman for 2011, the body said in a statement yesterday.

The election took place at the head office of Islami Bank Bangladesh in Dhaka on April 28.

Chairman of Islami Bank Bangladesh, Zaher is a postgraduate in English from Rajshahi University. He is also the managing director of Ibn Sina Pharmaceuticals Ltd, chairman of Industrialists and Businessmen Welfare Foundation and vice chairman of Bangladesh Association of Banks (BAB).

Mazumder is a postgraduate in English from Chittagong University. He is the chairman of Exim Bank and BAB. He is also the chairman of Nassa Group.

Source: The Daily Star (May 5, 2011)

Crown Agents' CEO due in town

Terence Jagger, chief executive of Crown Agents', is scheduled to arrive in Bangladesh tomorrow on a three-day visit, said a statement yesterday.

During his first tour to the Asian region, he will meet government officials, international financial institutions and other development partners to gain a deeper understanding of the region.

Jagger will also deliver the opening address at a seminar on public financial management, sponsored by Crown Agents Foundation, on May 9-10.

He also served Shell and American Express before joining Crown.

Source: The Daily Star (May 5, 2011)

Poorest at most risk from 10b world population

There may be 10 billion mouths to feed within a few generations. The United Nations sees the world's population hitting that landmark by 2100. Without efforts to change the pattern, the poorest countries will face the worst effects of the demographic drain.

Compared with its last effort two years ago, the new U.N. forecast both increases population projections and delays the date by which the global population will peak and begin to decline. Previously this was expected around 2070; the latest shows the population still increasing in 2100.

It's a dystopian prospect. Even allowing for humanity's undoubted ingenuity, that kind of population would surely strain the planet's resources and ecosystem severely, especially if growing numbers achieve developed-world living standards with the cars, flushing toilets and air conditioning that entails.

Also, the great majority of the projected population increase comes in the poorest countries, where clean water, food and other resources are already hard to come by -- to say nothing of transport and other infrastructure. The projected number of people in Africa by 2100 is 3.6 billion, over a third of the global total, while Nigeria's expected population is 730 million, up from some 155 million today and 39 million in 1960.

History has shown that rapid rates of population growth can thwart economic takeoff as the need for housing, education and infrastructure overwhelms the limited capital available. So Nigeria's population in 2100, for example, could be still poorer than today's. While the U.N. numbers are highly sensitive to small changes in assumptions, the latest forecast underlines the need to take demographic trends seriously. The economic implications aside, a growing population also implies more pollution and potentially accelerating global warming.

China's controversial one-child policy has helped put its population on track to fall by a third to 941 million in 2100, according to the U.N. forecast. But that has come at high social cost. More palatable ways to bring birth rates down include increased expenditure on education, particularly for girls. Richer countries might even consider funding old age pension schemes in very poor economies, reducing the incentive for large families. If that avoided the world's ever welcoming its 10 billionth resident, it would be money well spent.

The United Nations released its biennial revision of its "World Population Prospects" on May 3, extending its forecasts to 2100. The U.N. report estimates that the global population will be 10.1 billion in 2100 and will still be increasing. Its forecast of the population in 2050 was revised upwards by 156 million to 9.3 billion.

By 2100, Africa's population is forecast to increase by 350 percent to 3.6 billion, of which Nigeria will represent 730 million, and Zambia 140 million.

Source: The Daily Star (May 5, 2011)

Ericsson, Aircel team up on mobile positioning systems

Indian mobile operator Aircel has selected Ericsson to provide mobile positioning systems for its 2G and 3G subscribers, Ericsson said in a statement yesterday.

Aircel users can now get real-time tracking, navigation information and information services while on the move. As part of the three-year contract for supply and support, Ericsson will supply its mobile positioning centre to Aircel.

"There is huge potential in offering this value-added service to our customers. Most of the Indians who spend on average 90 minutes per day on the roads, location-based services will definitely increase efficiency and enhance the quality of their life," said Mallikarjun Rao, chief technology officer of Aircel.

Source: The Daily Star (May 5, 2011)