The New Nation - Internet Edition

Business Desk

The government had allocated taka 2250 crore as fertiliser and diesel subsidy in the National Budget 2007-08, raising it from taka 1041 crore in the National Budget 2006-07 in order to help farmers to boost agricultural production. After the budget was announced, a circle raised the point whether the benefits of the subsidy would reach them or would be lost on the way? In fact, the benefits will reach farmers if the distribution system is improved at the field level as the government has taken all measures to meet the demand.

However, there are some sad incidents as regards the distribution of fertiliser. Very recently, the farmers of Krishnapur Union in Manikganj Sadar Upazilla mercilessly clubbed the fertiliser dealer and manhandled four Agricultural Officials for their failure to deliver fertilisers. In another incident, chairmen of Ullapara Upazilla in Sirajganj District summoned an emergency press conference the other day and said that they would be compelled to run away if the farmers of the area did not get fertilisers before the start of the rabi crops. The rabi season starts soon while the IRRI and boro season in a month time, said an farmer. According to another report, 42.25 lakh hectares of land have been brought under boro cultivation and 22 lakh hectares of land under rabi cultivation.

Meanwhile, the government has decreased fertiliser subsidy by 10 percent to be recovered from the marginal farmers, meaning that the price of MOP and TSP will naturally increase. Till date, percentage of subsidy to these two fertilisers was 25. A Bengali daily writes that the decision of reduction of subsidy has been taken in view of increase of price in the international market. Under the revised rate, government will pay taka over 3000 crore against previous cost of taka 1500 crore for import of four lakh tonnes of MOP and TSP each. Out of eight lakh tonnes, Bangladesh Agricultural Development Corporation will import 50,000 tonnes each while the Bangladesh Fertiliser Association the remainder. Seventy percent of MOP and TSP are used during the boro and rabi monsoon.

Hearing the news of reduction of fertiliser subsidy, a farmer said, "The decision will hurt the interests of those among us who suffered heavily during the recent back-to-back floods. Can't the government use the siphoned money to protect them from taking loan from the village moneylenders and the NGOs at high rate of interests? Twenty-eight lakh tonnes of urea will be needed during the current fiscal year. Highest 11.30 lakh tonnes will be used between January 1 and March 31. Of the total demand in the country, locally 19 lakh tonnes are produced while the residue is imported. At present the price of 50-kg per bag urea is taka 300 only, but a farmer told over phone from Pabna they might be required to purchase part of the requirements from the open market at a much higher rate for cultivation.

Credit Rating Information & Services Ltd. (CRISL), the oldest and largest rating agency in the country has awarded triple 'A' to Standard Chartered Bank, for long term debt instruments and ST-1 for short term debt instruments, says a press release.

The triple 'A' rating represents both the highest rating awarded by CRISL to any bank or financial instrument in Bangladesh and SCB is, till date, the only bank to have received such rating.

Standard Chartered Bank, Bangladesh is a branch of Standard Chartered PLC, a FTSE 20 company registered in London and focused on Asia, Africa and the Middle East.

Currently the largest foreign bank in Bangladesh, Standard Chartered Bank originally established it's first branch in the country in Chittagong in 1948. Standard Chartered also traces its roots in Bangladesh back to 1905 through its acquisition of

ANZ Grindlays Bank. SCB is one of the top tax payers in the country and leads the local banking industry with pre-tax profits of Tk 552 crore and a capital base of Tk 1,041 crore as at 31st Dec 2006.

AFP, Singapore

Oil traded higher in Asia on Thursday on news US energy stockpiles fell sharply last week and tensions rose in the Middle East after Turkish warplanes bombed Kurdish rebel camps in Northern Iraq, dealers said.

New York's main futures contract, light sweet crude for delivery in December, advanced 85 cents to 87.95 dollars a barrel from its close of 87.10 dollars a barrel in late US trades.

The benchmark contract advanced 1.83 dollars a barrel overnight after the US Energy Department (DoE) said inventories fell higher than expected last week.

Brent North Sea crude for December climbed 73 cents to 85.10 dollars.

Dariusz Kowalzcyk, an analyst with CFC Seymour Securities in Hong Kong, said the sharp declines in the US energy inventory highlighted supply concerns amid strong demand.

"The decline in crude oil and products were quite deep and unexpected because the market was hoping for a rise. This highlights the tightness of the physical supply," he said.

The bombing by Turkish warplanes of Kurdish separatist rebel positions in Northern Iraq contributed to market jitters, he said.

Several of Iraq's major oilfields are located in the North and any conflict with Turkey could disrupt supply, analysts said.

The DoE said that stockpiles of US distillates, which include diesel and heating fuel, sank by 1.8 million barrels, confounding market expectations of a rise of 275,000 barrels.

Heating fuel stocks are a key market focus because demand usually surges during the northern hemisphere winter.

Compared with a year ago, US distillates stocks are 7.6 percent lower and crude reserves are 5.9 percent lower.

The fall in crude stocks came amid a huge 1.3 million barrel per day decline in imports, which some analysts said would not be repeated in the next few reports, especially with rising OPEC production.

The 4-day (October 22-25, 2007) Bangladesh Single Country Trade Exhibition jointly organised by the Japan External Trade Organisation (JETRO) and Export Promotion Bureau (EPB) Bangladesh with the active support of the Bangladesh Embassy in Tokyo ended on 25 October at the JETRO Building in Tokyo.

Osamu Uno, Vice-Minister for Foreign Affair, Government of Japan & Member of the House of Representatives, Akihiro Nishimura, Parliamentary Secretary of Cabinet Office & Member of the House of Representatives, Kenji Ogiwara, Parliamentary Secretary for Economy, Trade and Industry & Member of the Hosue of Councillors, Yasuo Hayashi. Chairman & CEO,JETRO & Md. Shahad Ullah, Vice-Chairman, Export Promotion Bureau (EPB), Bangladesh respectively were present on the opening day.

Ashraf-ud-Doula, the Bangladesh Ambassador in Tokyo, leading business leaders and high government officials and representatives of the participating companies of the exhibition both from Bangladesh & Japan were also present. "Bangladesh the next 11 among the emerging ceremony in the world "naming Bangladesh with this very word, the Vice-Minister for Foreign Affairs, Government of Japan initiated the speech and wished to cooperate to harness trade between the two friendly countries. Md. Shahab Ullah, Vice Chairman, Export Promotion Bureau (EPB) Bangladesh in his speech attached due importance on increasing bilateral trade specially enhancing export from Bangladesh to Japan.

He added that this exhibition would unbolt new avenues while Japanese importers come across the products through meeting the producers directly in the fair. Vice-Chairman, EPB thanked the Japanese Government especially to JETRO for providing support in this venture. Chairman, JETRO assured their cooperation to promote Bangladesh business in Japan through extending technical assistance to produce quality product in fulfilling the taste of Japanese consumers. In this context, the Chairman, JETRO referred the 35th years of establishment of diplomatic relation between Bangladesh and Japan would re-strengthen the relation beneficial for the welfare of the two countries.

Twenty-nine Bangladesh and five Japanese companies participated in the exhibition displaying products of international standard. The products that has been put on display were leather products, ceramic tableware, home textile, jute goods, RMG (both woven & knit) & handicrafts. Following the inauguration the distinguished guests, dignitaries, traders, importers had made a walk through of the venue to see the goods displayed over there.

AFP, Manila

France and the Asian Development Bank will provide 143.3 million dollars in loans and grants to help Vietnam rebuild rural roads, irrigation systems and farm infrastructure, the bank said on Thursday.

Hanoi will get a 90 million dollar soft loan from the Philippines-based ADB and a 52 million dollar loan and 1.3 million dollar grant from France's Agence Francaise de Developpement, a bank statement said.

Vietnam's critical rural infrastructure had deteriorated over decades due to war, natural disasters and budget constraints, it said.

Included are rural roads, irrigation drainage and flood control systems, rural markets, domestic water supply schemes, and special coastal works such as sand dune stabilization, salinity prevention and mangrove rehabilitation.

The project covers 13 provinces in Vietnam's impoverished Central Region.

"Poverty in Vietnam is a rural phenomenon, focused to a large extent on the more isolated central and northern regions of the country. It especially affects ethnic minorities," said ADB natural resources economist Ahsan Tayyab.

Improvements in rural infrastructure helped Vietnam's agricultural sector achieve significant growth in the past decade, the bank said.

Detailed loan terms were not disclosed.

Singapore Airlines received delivery of the first A380 in Toulouse, France, on the 15 October 2007, says a press release. This super-jumbo then landed on the island of Singapore on the evening of 17 October with much aplomb and excitement.

The A380 is scheduled to fly today (Friday, the 25 October) on a flight for Charity. From 28 October, Singapore Airlines' first A380 will be deployed as one of the three daily services from Singapore to Sydney. Originally designed to accommodate 525 seats in a three-class configuration, Singapore Airlines A380 seats only 471 passengers in a three-class configuration ensuring a more spacious and comfortable travel experience on this super-jumbo.

The considerably lower fuel burn and lowest emissions per passenger, makes the A380 one of the environmentally friendliest aircraft. The new technology, design, airframe

construction and engines all aid in making the A380 one of the quietest large passenger jets ever built. Cabin amenity is substantially improved, with significantly lower cabin noise throughout, improving passenger comfort and well being, translating to better travel for customers.

Cheang Kok Ming, General Manager Bangladesh of Singapore Airlines reaffirms saying, "This a great opportunity to serve our local customers by offering more seats and the finest products in the sky, when we first fly to Sydney in the A380. We believe the A380 will Singapore Airlines receives the technologically advanced A 380 aircraft affirming the airline's commitment to strive for the best. This super-jumbo then landed on the island of Singapore on the evening of 17 October with much aplomb and excitement. A380 is considered the fiendliest airbus for technology, design and airframe