The New Nation - Internet Edition

A.T.M.Nurun Nabi

The country produced 283 lakh metric tonnes of rice during the last financial year, excess of annual consumption but below the target; yet, people suffered bitter experience in respect of price. The most consumed coarse rice now sells at between taka 24 to 26 (it varies from market to market). Although, there is no logic behind such high rate, assessors have pointed out several factors behind the hike, needing gradual removal in order to restore normalcy in rice market.

For the current fiscal year, the aman target is one crore 30 lakh 45 thousand metric tonne. It includes one crore seventy thousand metric tonne of HYV transplanted aman, 24 lakh m.t. of local variety ropa aman and 5.70 lakh metric tonne of broadcasted aman. The target of boro output is one crore 69 lakh and 45 thousand metric tonne. The combine aman and boro target is two crore 99 lakh and 90 thousand only.

The target so fixed is not ambitious one but achievable. Just a field level coordination in the selection of the genuine farmers for receiving government's fertiliser and diesel subsidy and a fair selection of dealers for proper distribution thereof could yield a very good result. In the past, political consideration was the prime quality of selecting dealers most of whom were accused of creating artificial crisis.

Mere confession of discrepencies in distribution of fertilisers and seeds and supply of diesel is not enough to check fiasco. Good planning and effective implementation are vital in this respect. For this, the support of the government is very much necessary. For success in agriculture, the government may study the Chinese achievement. Though China’s economic structure is semi-capitalist, the government control part of production and distribution in order to resist artificial crisis. Economists fear if food output suffers shortfall, the nation may be constrained to pay heavily. The deficit can't be met by mere import.

It is said that rice is transacted at seven points from producers to consumers, resulting in the rise of price beyond economics index. The rice producers are intercepted by the middlemen on way to local markets and become constrained to sell at the rate fixed by the latter.

The middlemen sell paddy to the mill men for crushing. The mill men crush the paddy they purchase and then sell to the wholesalers through another group of middlemen in different areas of the country. Then the wholesalers sell to the retailers who sell to the consumers. Thus it appears that the middlemen intervene twice in the rice trading. A farmer said, he himself crushes his produce in his own home with the machine to escape middlemen’s interference in trading.

There is no doubt that the price of rice will be much lower than the present's if the farmers could directly sell to the consumers. In that case, both the farmers and the consumers would be profitted.

AFP, Singapore

World oil prices continued their falls in Asian trade today (Monday) as the market focussed on rising supply and a stronger US dollar, dealers said.

New York's main oil futures contract, light sweet crude for delivery in November, was 17 cents lower at 78.85 dollars per barrel in morning trade.

The contract had plunged 2.20 dollars to 79.02 dollars per barrel in late United States trades on Monday.

Brent North Sea crude for November delivery was 22 cents lower at 76.36 dollars per barrel after dropping 2.32 dollars in London.

Prices have fallen sharply since New York oil prices burst through the 80-dollar level for the first time last month and went on to hit an all-time peak of 84.10 dollars.

Brent oil hit a record high of 81.05 dollars per barrel in late September. Steve Rowles, an analyst with CFC Seymour in Hong Kong, said that with the Atlantic Ocean hurricane season virtually over, and rising crude supplies, the market is focussing on supply and demand fundamentals.

The Gulf of Mexico is a leading oil-producing region for the United States and Mexico. Investors worry about storm damage to oil rigs and other infrastructure during the long Atlantic hurricane season that ends in November.

Crude oil stocks rose by 1.2 million barrels, a report last week by the US Department of Energy (DoE) showed, and Rowles said the market's consensus forecast is for another rise this week when the latest DoE report is issued.

A stronger US currency makes dollar-denominated commodities, such as crude oil and gold, more expensive for buyers using weaker currencies.

The euro fell to 1.4032 in morning Asian trade, from 1.4042 in late New York trade on Monday.

In recent weeks, the euro had hit a series of record peaks against the dollar, which helped to boost oil prices.

Sucden analyst Michael Davies said during US trading hours that the fall in oil prices came on concerns over a possible slowdown in the US economy and uncertainty about the outcome of a recent credit crunch in the world's biggest economy.

AFP, Beijing

China said today (Monday) its trade surplus hit a monthly record 27.1 billion dollars in October, an announcement likely to increase foreign calls for adjustments to the yuan.

The accumulated surplus for the first 10 months was 212.4 billion dollars, an increase of 59 percent from the same period in 2006, the state customs bureau said on its website.

The October figures make it virtually certain that the full- year 2007 surplus will shatter last year's record 177.5 billion dollars.

The surplus last month was fuelled by 22.3 percent growth in Chinese exports to 107.7 billion dollars, while imports grew 25.5 percent 80.7 billion dollars.

The United States and other foreign critics argue that the yuan is kept artificially low to make Chinese exports more competitive, allowing China to compile its massive surplus and add to a foreign exchange hoard now at more than 1.4 trillion dollars.

Some in the US Congress have called for sanctions to punish China over its currency policies, but Bush administration officials have opted for negotiations and occasional complaints at the World Trade Organisation.

China de-linked the yuan from the US dollar in 2005 and has since allowed it to rise about 10 percent against the greenback, a pace many US officials consider too slow.

A Round Table Discussion (RTD) on "Power for all by 2020" was organised jointly by the Dhaka Chamber of Commerce & Industry (DCCI) and The Daily Star at the DCCI Auditorium on November 10, 2007. The objective of the seminar was to discuss various aspects to provide access of power to all citizens by 2020, which is a national goal of the Government of Bangladesh. Dr. M Fouzul Kabir Khan, Secretary, Power Division.

Ministry of Energy, Power & Mineral Resources, Government of Bangladesh was present as chief guest. Mahfuz Anam, Editor, The Daily Star moderated the RTD. Shariar Khan, City Editor, The daily Star presented the keynote paper. Hossain Khaled, President, DCCI chaired the RTD.

Dr. M. Fouzul Kabir Khan, Secretary, Power Division. Ministry of Energy, Power and Mineral Resources, GoB said that the government is working to supply power for 60% people by 2010. He stated that 300 M.W. electricity from rental power plant and 200 M.W. from other sources will be obtained by March, 2008 and it will meet a big portion of current demand. He also said, all process for generating 1350 M.W. electricity from country's three big power plants at Bibiyana (450 M. W), Serajgonj (450 M.W) and Meghna (450 M.W) will be completed by December 2008. He stressed that system loss must be reduced to single digit by increasing efficiency of power sector. He further said, Power tariff is a very sensitive issue. Price of power is higher than cost and comparatively lesser than neighbouring countries. He further mentioned that 20% coal are being extracted from Dinajpur Borapukuria Coal Mining, not getting enough coal or power from this source. Coal fired power plants should be set up by imported coal near the ports.

In his address of welcome Hossain Khaled, President DCCI stated that the achievement of the goal of "Power for all by 2020" is very challenging. Due to the negligence in generating power in the last few years, the power sector suffered much. The most alarming aspect was lack of successful power due to delay in decision making.

If power supply is ensured as per demand, the growth of GDP can be 10% per annum, he added. He suggested to take various short, medium and long-term measures to overcome current power shortage and ensure power for all by 2020. His suggestions include reduction of system loss of all power suppliers; ensure supply of coal to the power plants in Barapukuria; allowing small power plants to the private sector; supplying gas to power grid, synchronisation of generation, transmission & distribution of power: enhance regional co-operation among India, Nepal and Bhutan to use the Himalayan water resources; implement Ruppur Atomic Energy Project; use renewable energy; convert public sector power producers to public limited companies; finalise coal policy; take steps for attracting FDI etc. He also emphasized 'on the success of power sector in Bangladesh through institutional development.

Mahfuz Anam stated that Presently Bangladesh's 'demands for power is 5200 megawatt while supply is 4200 mw. The government is now burdened with overwhelming number of tenders for power projects totalling nearly 4000 mw generation capacity. Bangladesh Energy Regulatory Commission is not working efficiently. He informed that in the next 13 years, the nation's demand would be thousands of MW which needs huge investment, successful bidding, negotiation and implementation. .

Touhidul Islam, Managing Director of Summit Power Co. Ltd. urged upon the government to take decision to award big power projects very quickly to avoid disaster in coming years and rationalise power tariff to attract investment.

A number of experts relating to power participated as designated discussants. They suggested to rationalise tariff structure of electricity, supplying coal as alternative of gas, reform of nation power policy emphasising supply to agriculture and industry, taking big power plants projects, freedom of power producers to generate and sale electricity by establishing an effective multiple buyer model in the power sector.

Among others M.H. Rahman, Past President, DCCI, M.A. Momen, 'Past President, DCCI, M. Shahjahan Khan, Sr. Vice President, DCCI also took part in the discussion.

Citi, the world's leading financial institution, will observe 'Global Community Day’ on Saturday, November 17 as it did last year. Citi employees volunteer year-round in the communities in which they live and work. 'Global Community Day’ is such an initiative to have Citi's employees in over 100 countries, along with their families and friends, come together as a global team on one single day each year. Volunteer teams will be working on hundreds of local projects addressing specific community needs, including literacy, housing, environmental protection, nutrition, health care and disaster relief all across the globe on November 17, 2007.

In Bangladesh also, Citibank N.A. has taken extensive programs to observe the day and organized a very special day for the physically and mentally challenged children of Bangladesh Protibondhi Foundation (BPF). A few hundred children from various BPF programs (like Kalyani, Dishari and Karukor) are expected to attend this program.

This will be a special and memorable day for these children with lots of interesting activities like fun games, painting, music, magic, competitions and lots more. As a special encouragement, the most inspiring role models from Bangladesh Special Olympics team, which won spectacular laurels at the recent Special Olympics at Shanghai, will be an important part of this program. During the program the golden children of Bangladesh Special Olympics team will be paid tribute for their achievement. The program will be graced by many dignitaries, artists and important personalities of the nation. Citibank's esteemed clients and community development partners are also expected to play an active role on the day.

UNB, Dhaka

As they have raised the allegations of cheating in weight and prices by the wholesalers, Bangladesh Rifles (BDR) has urged the retailers to go to BDR-set up wholesale markets in the city to buy goods at fair prices.

BDR has already set up three markets in the city-one in Uttara and two others in Sayedabad and Gabtoli-as part of government efforts to keep the soaring prices under control.

The wholesale market in Uttara is already in full operation while the ones in Sayedabad and Gabtoli are operating partially, a BDR high official who is monitoring the wholesale markets told UNB.

Earlier on Sunday, leaders of Small Fish and Kitchen Traders Association at a press conference here alleged that the retailers were being cheated in weight and prices by the wholesalers in the city's wholesale markets.

They demanded setting up of government-run wholesale markets at different kitchen markets of the city to help them run their business smoothly.

The BDR official said there is no scope of any irregularities in selling goods at the BDR-facilitated wholesale markets as they strictly enforce all rules for smooth trading.

"We're also planning to expand the wholesale markets at Gabtoli and Sayedabad as per the growing need of the city dwellers," he said.

Asked why the retailers go to those wholesale markets even after being cheated in many ways, president of the association Anwar Hossain Shikder said they have no option but to go there.

In this regard, the BDR official said, "These traders go over there as they can purchase goods on credits. This is the main reason. They cannot do that in our markets."

"I myself went to Karwan Bazar kitchen market in plainclothes but I didn't find such irregularities as complained by the small traders. But fish retailers are sometimes cheated by the wholesalers," he said.

Blaming the retailers for the spiraling prices, the BDR high official said they (retailers) are irrationally raising the prices of essentials. "It's very unfortunate that they sell items at much higher rates than the ones they are buying those from the wholesale markets."

Responding to a query, he said the prices of onion and garlic have marked a raise in BDR markets as India stopped exporting the items to Bangladesh.

AFP, Shanghai

China's economic growth is likely to maintain a feverish pace of more than 11 percent in the fourth quarter, state media reported today (Monday), citing a government think tank. The economy is expected to expand 11.2 percent in the last three months of 2007, slowing only slightly from 11.5 percent in the previous quarter, the China Securities Journal reported. The consumer inflation rate is likely to grow 5.9 percent in the fourth quarter, compared with 4.1 percent for the first nine months of the year, the State Information Centre, a think tank, said according to the paper.

"Since economic growth remains at high levels, the basic direction of macroeconomic policy should continue to focus on preventing overheating," the report said. China has raised interest rates five times so far this year and over the weekend announced this year's ninth hike in the reserve ratio requirement for banking institutes.

or the money banks need to set aside with the central bank.

The report forecast gross domestic product will grow 11.4 percent for the full year of 2007, while the consumer price index will rise 4.6 percent this year, compared with only 1.5 percent in 2006.