The New Nation - Internet Edition

A.T.M.Nurun Nabi

The fish production in the country has increased substantially in last five years. The total fish production in the country during the fiscal 2006-07 stood at 24.42 lakh metric tonnes, higher by 1.12 lakh metric tonnes over the fiscal 2005-06 and by 6.60 lakh metric tonnes from 2000-01. But the price is too high and almost beyond the purchasing power of the members of the poor i.e. those who earn one dollar a day.

According to Bangladesh Economic Review, the total areas of water in which fish automatically grow or cultivated are 44.36 lakh hectares. The area of the open water is 40.47 lakh hectares (91.1 percent) while the closed water bodies cover 3.88 lakh hectares. The distribution of areas is as follows:

Rivers and estuaries 10.32 lakh hectares, beels (marsh) 1.14, the Kaptai Lake 0.69, flood plain 28.33, ponds 2.42, baor 0.05, shrimp farm 1.41 and marine 0.48 nautical miles. Of the total productions, rivers & estuaries contribute 1.40 lakh metric tonnes, The Sunderban 0.16, marsh 0.80, the Kaptai Lake 0.07, flooded water 7.60, ponds 7.90, baor 0.04, shrimp hatchery 1.30 and marine fisheries 5.14 only.

The number of the government hatcheries in the country is 112 and the private hatcheries is 731. These hatcheries produce 2.08 crore of fries and 461.06 crore.

To improve the fish production in the country, the government has formulated eight strategic papers for the development sector. These papers are Aquaculture Strategy, Aquaculture Extension Strategy, Inland Captive Fisheries Strategy, Marine Sector Strategy, Shrimp Strategy, Monitoring and Evaluation Strategy, Human Resource Development Study and Quality Control Strategy.

In the National Budget 2007-08, the government has allocated taka 332 crore under non-development budget and taka 219 crore under development budget to Livestock and Fisheries Ministry.

Experts are of the view that the fish production would have been much higher had not dams been built on the international rivers flowing to Bangladesh through India, seriously affecting the fish production.

A good number of rivers, tributaries, river-lets, canal, water marsh and ponds have dried while 55 species of fish have already disappeared. In an agro-based country like Bangladesh, fisheries sector is one of the most important and promising sectors having vital contribution towards the economic development

This sector plays a significant role in meeting the protein demand, earning foreign exchange, and in the socio-economic development of the rural people by alleviating poverty through employment generation. Fish provides with 63 percent of dietary protein requirement of the country.

Programmes for infrastructure development and seting up of hatcheries and training are being implemented for expansion and development of shrimp culture.

The government has also undertaken project of assisting the fishermen of 11 districts (illegally) trading with jhatka (fries of river shad) that they refrain from neting them. As a result, the river shad production increased to 255 thousand metric tonnes from 200 thousand metric tonnes and earned revenues of taka 850 crore. The country earned $ 459 million by exporting frozen fish during the fiscal year 2005-06 and $515.32 million during the fiscal 2006-07.

Staff Reporter

One kilo of lancer fish (scorpion fish) was selling at taka 650 on Friday at Khilgaon Taltola Market to the surprise of the buyers who desired to take it Prices of other fish were: Poa taka 300, river shad taka 320, sheat 260, climbing fish (cultivated) 200, lobster 320, shrimp 220 and salmon 140 only. A fish dealer said, "Supply being low, situation has not improved, rather deteriorated. If you visit the city's wholesale fish market, you will watch the buyers crumbling for fish."

On the other hand, the vegetables price has again risen much to the contrary of the media reports that vegetables were roting in absence of buyers. On Friday one kilo of brinjal was selling at taka 40 at the same market Prices of other items were: Cucumber taka 32, brinjal taka 40, snake gourd taka 40, biter gourd taka 32, ladies finger taka 40, cucarbitaceous taka 28, potato 22, green pepper taka 80 and purbal taka 32 only.

As to the rice price, it has remained unchanged. The nazirsail variety was selling at taka 27 to 35 per kilo according to their freshness and quality. The miniket variety was selling at taka 30 to 32, the coarse rice at taka 3 to 25, sunned rice at taka 23 and the coarse flour at taka 33 only, said a retail seller of the said market To a question he said, "We have no idea as to what would be the situation in view of the news that flood has damaged standing crops of several lakh acres of land."

Onion price the same day was taka 32, lentil at taka 78 to 80, gram at taka 80, green gram, mash and pea at taka 64 each. However, prices at BDR markets was cheaper.

AFP, Frankfurt

The European Central Bank and the US Federal Reserve took fresh action on Friday to ease tightening credit linked to the home loans crisis in the United States.

The ECB added 40 billion euros (54 billion dollars) in three- month funds to the money market to cut borrowing costs in one of the areas hardest hit by the US subprime crisis.

The measure, designed to encourage lending by banks, was the first time the ECB had made a three-month injection outside its normal monthly schedule.

The ECB made the offer of the funds on Wednesday, saying it was "a technical measure aimed at supporting the normalisation of the functioning of the euro money market"

In its latest move, the US Federal Reserve injected 17.25 billion dollars into the financial system.

That brought the total added to money markets by the Fed in repurchase agreements to 120.5 billion dollars over the past two weeks. Central banks around the world began a series of major cash infusions on August 9 in response to the home loans crisis in the United States and turbulence on the markets is showing no signs of going away.

The ECB has pumped more than 200 billion euros into markets in recent weeks.

In a bid to ease lending between banks, the US central bank on Friday made a surprise cut in its discount rate to commercial banks to 5.75 percent from 6.25 percent

Holger Schmieding, Bank of America's chief economist for Europe, said banks were unwilling to lend to each other because of the uncertainty generated by the US credit crisis. "With the early intervention last week the ECB helped to do away with the liquidity shortage at the very short end of the money market," he told AFP.

"Today they acted to help with liquidity at the three-month end of liquidity.

"This offsets the reluctance of banks to lend to each other. Banks are reluctant to do so because they do not know which of their counterparts are having problems (with the subprime loans). "And if you are uncertain, you keep your cards close to your chest"

The situation is particularly difficult for longer-term credit

The three-month Euribor, the rate at which European banks lend money to each other, stands at more than 4.7 percent, its highest level since 2001 and higher than the ECB's own key refinancing rate of 4.0 percent

The ECB on Wednesday re-stated that it was maintaining the monetary policy stance expressed by its president, Jean-Claude Trichet, earlier this month.

Trichet had hinted strongly at a hike of a quarter of a percent in the key financing rate in September, taking it to 4.25 percent

AFP, New York

Wobbles returned to global stock markets on Friday as fears of a credit squeeze resurfaced following the US Federal Reserve's move to increase its liquidity injection to markets.

The Dow Jones Industrial Average gave back early gains and finished essentially flat, with a loss of a fractional 0.25 point at 13,235.88. The Nasdaq composite dropped 11.10 points (0.43 percent) to 2,541.70 and the Standard & Poor's 500 broad-market index shed 1.57 points (0.11 percent) to close at 1,462.50.

A day after hefty gains in most global markets, US stocks opened strong on news that Bank of America had agreed to invest two billion dollars in troubled US mortgage giant Countrywide Financial Corporation.

"The news prompted one analyst to upgrade Countrywide shares," said Dendra Lambert at Hilliard Lyons. "Still, fears that a downturn in housing and credit markets could lead to a recession remained."

Markets began to waver after news that the Federal Reserve had injected 17.25 billion dollars into the financial system in three actions Thursday, the latest in a series of moves designed to ease a credit squeeze in global markets.

The moves left market participants "struggling to grasp the extensiveness of the credit turmoil and again wondering if borrowers are in fact geting the credit they need," said analysts at Briefing.com.

The European Central Bank meanwhile added 40 billion euros (54 billion dollars) in three-month funds to the money market to cut borrowing costs in one of the areas hardest hit by the US subprime crisis.

"One of the key questions now is whether the market has shaken off the credit worries and other negatives sufficiently to continue a relatively uninterrupted move higher," said Gregory Drahuschak at Janney Montgomery Scot

"Although it is possible that the market can keep moving straight up short-term, if it does it will be an anomaly relative to historic precedent"

Some analysts said the market has not yet fully discounted the impact of the liquidity squeeze.

"We think the markets are being too complacent about economic prospects," said Patrick Fearon at AG Edwards.

"As of this moment, we still think that the deterioration in the world's financial markets will weigh on economic growth and that this will become evident in data that will start coming out in September."

In London the FTSE 100 index closed up a mere 0.01 percent at 6,196.90, while in Frankfurt the DAX 30 gained 0.15 percent to 7,511.96 and the Paris CAC 40 rose 0.09 percent to 5,523.33.

The Euro Stoxx 50 index of leading eurozone shares gained 0.16 percent to 4,233.35.

In other markets, Brazil's Bovespa gained 0.2 percent and Mexico's Bolsa advanced 0.65 percent

In Canada, the S&P/TSX Composite fell 0.9 percent

Earlier in Asia a positive lead from China galvanized buying interest after Shanghai shares smashed through the 5,000-point level for the first time.

Tokyo's main shares index soared by 2.61 percent to end at 16,316.32 points, regaining the key 16,000 points level as the Bank of Japan held interest rates at 0.50 percent

Elsewhere, Hong Kong ended 2.77 percent higher, Seoul gained 2.3 percent, Sydney rose 2.6 percent and Wellington added 1.38 percent

Xinhua, Brussels

The European Commission (EU) proposed on Thursday to establish a single licensing procedure for mobile satellite services across the European Union.

The proposal would allow companies to apply for one EU-wide license from the commission to provide mobile satellite services, instead of seeking permission from each of the 27 member states. "This would provide a one-stop shop," commission spokesman Martin Selmayr said at a daily news briefing, adding it should help cut costs and boost the satellite communications industry in Europe. A mobile satellite service is a service provided by a satellite system which communicates with portable terrestrial terminals. Such systems allow high-speed communication between satellites and handheld mobile terminal, providing many wireless services, such as mobile TV, broadband data and emergency communications.

One well-known example is portable satellite telephones that allow phone calls to be made and received anywhere in the world.

The overall market for space and its applications is about 70 billion euros globally, growing at some 7 percent per year, according to the commission.

If the proposal is adopted by the European Parliament and member states early next year, the EU's executive arm will publish an open call for applications and the target date for completing the EU selection process is early 2009. The commission said the candidate systems' quality will be assessed technically and commercially. Further assessment criteria will include geographic coverage, consumer and competitive benefits, the fulfillment of public policy objectives, and spectrum efficiency.

Selected operators will be subsequently authorized by national authorities and then start launching satellites so that commercial activities could begin in 2011.

Several satellite companies like SES Astra and France's Eutelsat Communications have already shown interest in applying for the EU-wide license.

Mobile satellite services will use the two gigahertz band throughout the EU, comprising radio spectrum from 1980 to 2010 megahertz for earth to space communications, and from 2170 to 2200 megahertz for space to earth communications.

AFP, Singapore

Oil prices were flat in Asian trade on Friday as investors kept an eye on global financial and equity markets shaken by a crisis in US lending to risky home loan borrowers, dealers said.

Prices have firmed in recent days after falling sharply from an all-time peak 78.77 dollars on August 1 as the financial markets calmed down, easing concerns about weaker economic growth that would dampen energy demand.

But concerns returned Thursday as fears of a credit squeeze resurfaced, indicating that the fallout from the US subprime mortgage woes were far from over, analysts said.

New York's main contract, light sweet crude for October delivery was unchanged at 69.83 dollars a barrel.

Brent North Sea crude for October delivery eased a cent to 69.85 dollars.

"Oil markets are weighing potential influences at present, including what, if any, impact the financial market issues of recent weeks may have on US economic growth," Australia's Commonwealth Bank said in a note.

The United States is the world's biggest oil consumer, and an economic slowdown there will hit demand for oil.

The oil market is also watching any decision by the OPEC cartel during their meeting next month regarding production levels and whether "there is a risk of oil market conditions worsening over the northern winter," Commonwealth Bank said.

Winter will fuel higher demand for heating fuel.

Many analysts believe the Organisation of Petroleum Exporting Countries will keep production at current levels when it meets on September 11 at its Vienna headquarters.

At its last meeting in March, the cartel decided to hold its official production quota at 25.8 million barrels of oil per day.

The weather remains a key factor for oil prices as September is the peak hurricane season in the United States, analysts have said.

US oil production facilities in the Gulf of Mexico can be threatened by such vast storm systems.

AFP, Seoul

South Korea will resume US beef imports which were suspended early this month after inspectors discovered banned bones in one shipment, officials said on Friday.

The Agriculture Ministry said it would resume quarantine inspections of US beef next Monday, removing a potential irritant in trade relations.

A spokesman said Washington in a leter had admited that the shipment of backbones and ribs-designated as risk material for mad cow disease-had been sent by mistake.

"However, we will maintain a ban on US beef processing centres that shipped banned bones," he said.

US beef imports have been suspended several times since South Korea last year relaxed a three-year total ban imposed to keep out mad cow disease. At present, it is willing to accept only boneless meat

The beef issue is a sensitive one in trade relations with Washington. South Korea was once the third largest market for US beef, with imports worth 850 million dollars a year before 2003.

A sweeping free trade deal signed by the two countries on June 30 must be ratified by both the US Congress and South Korea's National Assembly. Opposition among US legislators to the pact could intensify unless the beef market reopens.

AFP, Kuala Lumpur

Malaysia's debt-ridden port authority has been rescued by the government, with the transport ministry saying on Friday that they would give them a soft loan to cover about one billion dollars of debt

Port Klang, whose officials may be investigated for corruption, has spent 4.6 billion ringgit (1.3 billion dollars) since construction began in 2004, and local press have reported that the authority is riddled with mismanagement

After meetings between the transport minister and Prime Minister Abdullah Ahmad Badawi yesterday, the government agreed to the loan for the Port Klang Free Zone (PKFZ), a transport ministry spokesman said.

"Port Klang is our main port and we have much big plans for it We cannot continue to let debt problems persist as it holds back all the plans to enhance this venture," the spokesman told AFP.

The 1,000-acre (400-hectare) PKFZ shipping area opened in western Malaysia last year, and costs have risen swiftly.

"With the high overall cost of the PKFZ in mind, the government has agreed to give the soft loan and details are being worked out on the repayment scheme. It will be a scheme that will help them to get back on their feet again."

The decision is likely to worry opposition leaders and corruption watchdogs, who have urged the government not to bail the port authority out without a thorough investigation into any corruption.

The government's powerful Public Accounts Commitee said Wednesday they would look into any financial mismanagement by the port, and possibly launch a full-scale investigation.

Xinhua, Jakarta

Indonesia plans annual shipments of up to 5 million tons of liquefied natural gas (LNG) to Japan after their current contracts end in 2010, despite the country's plan to sell more of its gas domestically, local press said on Friday.

State-owned oil and gas company Pertamina, which handles sales of the country's LNG, will ship about 2 million tons of the total 5 million tons from the Senoro LNG plant in Central Sulawesi, reported English daily The Jakarta Post Pertamina deputy president director Iin Arifin Takhyan said Japan-based company Mitsubishi is a majority shareholder in the Senoro LNG project, with a 51 percent stake. Japan had demanded Indonesia guarantee the continuity of its LNG exports as part of the Economic Partnership Agreement signed by President Bambang Susilo Yudhoyono and Japanese Prime Minister Shinzo Abe early last week.

Under the current contracts, Indonesia ships 12 million tons a year to Japan. Iin, who heads the negotiation team for the extension of LNG export contracts with Japan, said with Indonesian gas production limited due to a lack of new findings and aging fields, it was important for the government to prioritize the domestic gas market

However, he said Pertamina was still open to more negotiations on the amount of gas that would be exported and at what price. Of Indonesia's total annual LNG exports of 24 million tons, 12 million tons go to Japan.