The New Nation - Internet Edition

Staff Reporter

After showing an upward trend for the last several days, the prices of rice in the city's wholesale and retail markets came to a halt yesterday.

The prices of rice have also come down by Tk 25 to Tk 30 in the wholesale markets of rice in Chittagong following the unloading of imported rice from ships at Chittagong Port.

However, the prices of flour, lentil and edible oil marked a sharp rise in one week. Atta is now selling Tk 40 per kg, while soyabean oil at Tk 100 per kg and Masur lentil at Tk 80 per kg.

According to the wholesalers of rice in Chittagong, the prices of rice are somewhat less in neighbouring Myanmar. If the import of rice continues from Myanmar at the private level, the prices of rice in local markets would come down, they said. They said opening of letters of credit (L/Cs) is likely to go up in the next week as the importers in Chittagong have become interested to import rice from neighbouring Myanmar through waterways.

On the other hand, prices of different varieties of rice are gradually coming down in two largest wholesale markets-Pahartoli and Chaktai-in the port city of Chittagong where the prices of rice went down by Tk 25 to Tk 30 per maund in the last two days. Rice prices may go down further in these markets, the wholesalers said.

Retailers from different parts of the southern districts have also been thronging these markets to buy rice over the last two days.

According to the wholesalers at these markets, unscrupulous wholesale rice traders of the North Bengal have stockpiled huge quantities of rice in the godowns in several northern districts, including Naogaon, Dinajpur and Bogra for making extra profits. As a result, deficit has arisen in the supplies of rice to different districts of the country.

Meanwhile, the prices of rice in the city's wholesale markets have remained stable. However, the wholesalers suggested the government to import rice from different countries for keeping the markets stable.

Visiting the Krishi Market, one of the largest wholesale markets at Shyamoli in the city yesterday, this correspondent witnessed that Parijat variety of rice was selling at Tk 29.47 to Tk 30.81 per kg, different varieties of Miniket at Tk 38 to Tk 40.19 per kg, and Paijam at Tk 36.17 to Tk 37.51 per kg.

However, the lowest quality of coarse rice is now selling at Tk 34 per kg at retail level.

The wholesalers said if the supplies remain normal the prices of rice would go down by Tk 1 to Tk 2 per kg by today (Saturday).

On the other hand, prices of other essential commodities like edible oil, atta and lentil marked a sharp increase in the city's markets yesterday.

Retailers said the prices of atta are not showing any sign of going down as different companies have suddenly increased the prices of their brands. Fresh, Teer, Mahin and other brands of atta were selling at Tk 39 to Tk 40 a kg in the local markets yesterday.

The five litre can of Rupchanda brand of soybean oil is now selling at Tk 495 to Tk 500. Retailers said the companies themselves increased the prices of soyabean oil by Tk 30 to Tk 50 for five litre cans in a week showing the lame excuse of "short supply." As a result, the retailers are to buy the soyabean oil at higher prices.

Ordinary people said despite the price hike of essentials, they have nothing to do but to purchase at higher prices. "We have been going through acute hardships following the price hike of essentials. We have been facing great difficulties in maintaining our families," said Abul Kalam, a government employee, who lives in Mirpur yesterday.

Golam Mowla, another private serviceholder, said the government would have to pay careful attention to the ongoing price-hike of essentials in the markets. Otherwise, it would have to face deep troubles in the days ahead.

Meanwhile, joint forces yesterday started selling rice at lower prices at 29 unions of Keraniganj, Nawabganj and Dohar upazilas in a move to control its spiraling prices.

Major Farid Ahmed of Savar army camp formally inaugurated the rice-selling programme at Nawabganj upazila at about 2:00pm. The

programme would also continue in Keraniganj and Dohar upazilas.

"This is our (army) own initiative to tackle the ongoing price hike of rice. People of the areas can buy rice at Tk 22 per kg from the rice selling outlets from 8am to 8pm and one can purchase maximum 5kgs," Major Farid told newsmen.

He said they have taken this initiative to cool down the overheated wholesale markets. Three rice-selling centers have been set up in the 29 unions of the three upazilas and the joint forces would monitor the programme.

Major Farid said: "After a marathon meeting with UNOs of the concerned upazilas, we decided that upazila authorities would sell rice to the traders at Tk 20.21 and the rice traders would sell it to the common people at Tk 22. On the first day we have got a huge response from all quarters."

He termed the programme as a 'pilot project' and said the three upazilas have 1500 metric tons of rice, which was allocated by the government at different projects like Food-for-Work and Test Relief programmes. "That does not mean the projects would not be implemented, those must be implemented later with the money that

would come from the rice sale," he said.

He said if the project is implemented successfully, the rice traders who are behind the price hike will be forced to decrease its price for their survival as it would put pressure on them.

Responding to a query, he said, "We're implementing the project as per the existing law of the country. We're also trying to bring the rice price within the purchasing capacity of the common people through assimilating all sorts of government projects," Farid Ahmed said.

BBC Online

Mike Huckabee and Barack Obama have won the Iowa caucuses - the first nominating contest of the 2008 US presidential election.

Huckabee won for the Republicans, defeating Mitt Romney. At the Democratic caucuses, Obama won by a clear margin, defeating John Edwards, who edged Hillary Clinton into third place.

The Iowa caucuses can give big boosts to candidates' campaigns. The next contest is on Tuesday in New Hampshire.

Turnout in Thursday's caucuses rose markedly, particularly for the Democrats, with 239,000 Democrats taking part - up from 124,000 in 2004.

Results from more than 1,780 caucuses (or public meetings) showed that Huckabee, a former Arkansas governor and Baptist minister, had polled just over 34% of the vote.

Romney, a former governor of Massachusetts, secured 25% support.

"Tonight what we have seen is a new day in American politics. Tonight we proved that American politics is still in the hands of people like you," Huckabee told his cheering supporters.

The victory for Huckabee is seen as a blow for Romney, who has spent tens of millions of dollars more on his campaign.

However, Romney said the battle for the nomination was far from being lost. "This is obviously a bit like a baseball game, first inning. Well, it's a 50-inning ball game. I'm going to keep on battling all the way and anticipate I get the nomination when it's all said and done," he told Fox News.

In the Democratic race, Obama won 38% of the vote.

Edwards and Clinton were almost level on around 30% with Edwards just ahead.

"We are choosing hope over fear, we are choosing unity over division and sending a powerful message that change is coming to America," Obama, who is vying to become the first black US president, told his supporters.

Obama, a senator from Illinois, will now be hoping to build momentum for the rest of the race, the BBC's Kevin Connolly in Iowa says.

However, both Edwards and Clinton vowed to continue the fight for the Democratic nomination.

"We have always planned to run a national campaign all the way through the early contests," said Clinton, flanked by her husband - former President Bill Clinton.

'Fantastic' Jubilant crowds celebrated Huckabee's victory at a party in a Des Moines hotel.

Among them was Mary Duggar, a volunteer who had travelled from Huckabee's home state of Arkansas to help his campaign.

"He's a fantastic candidate. I thought he would win but I didn't know it was going to be quite this good," she said.

A few blocks away, Obama supporters held their own party at Des Moines's Hyvee Hall.

"We are ecstatic," said 16-year-old Jenny Ajluni, who was too young to take part in a caucus but joined the victory rally.

Eighteen-year-old brother Chris said: "He really made history tonight."

While the Democrats' participation rose most substantially, turnout was also up on the Republican side, with some 115,000 people taking part - up from fewer than 90,000 in the last contested Republican caucuses in 2000.

Similar caucuses or primaries will take place across all American states before each party backs a single candidate to contest the November election for the White House.

The Iowa caucuses and the New Hampshire primary on 8 January are regarded as key for building momentum in the state-by-state process of winning the presidential nomination.

Staff Reporter

Low and middle-income group of people have been taken off their feet by the sudden jump in prices of essentials including edible oil and wheat in the local markets.

The joint forces yesterday started selling rice through dealers at Tk 22 per kg in areas surrounding Dhaka to stem the spiralling price of the staple. The sale began in 29 unions in Keraniganj, Dohar and Nawabganj with three selling centres in each union. Excessive price of essentials and a fear of further price-hike also gave rise to panic buying among some middle and higher income groups.

Meanwhile, leaders of different political parties suggested solving the present crisis of essentials.

Although the price of winter vegetables are reasonable compared to other essential items, the customers looked puzzled while shopping in the city markets yesterday.

Coarse variety of rice was sold at Tk 44 to Tk 45 per kg while soyabean oil at Tk 100 per litre.

While visiting different shopping centres a consumer said, "We have no other option, but to buy for our survival."

While visiting various areas this correspondent found long queues of poor people at BDR sales centres in Dhaka.

Meanwhile, in the joint force-led selling centres the rice has been allocated from the Test Relief Programme and is being sold to the dealers at Tk 20 to Tk 21. The dealers are selling the rice to the people at Tk 22.

According to the camp commander, one person can buy a maximum of five kg per day at this price. Coarse rice is selling at Tk 33 per kg in the retail market. Seventy distributors have been appointed under this programme. The programme will continue for another seven days in the three upazilas. The rice selling centres will remain open from 8:00am to 8:00pm. As much as 8,000 tonnes will be sold every day in the 29 unions of the three upazilas.

Major Farid, camp commander of the three upazilas, said, "Upazila Nirbahi officers, Union Parishad chairmen, rice traders and government officials are extending 'all-out support' to see the programme succeed. If rice price does not become stable in other areas, such programmes will be introduced throughout the country in phases."

UNB added that in view of the grim situation, the major political parties, including Awami League (AL), BNP and Jamaat-e-Islami, urged the Caretaker Government to give subsidy to rice and start OMS, VGF or 'Food for Work' programmes to cope with the situation.

The AL presidium at a meeting on Thursday demanded of the government to sit with the political parties to work out a plan for overcoming the crisis.

The meeting also called for giving subsidy to rice, introducing reopening in rural areas and starting OMS to stabilise the market.

BNP leader Nazrul Islam Khan said, "A garment worker earns Tk 37.50 per day but buys one kg of rice at Tk 35. How will poor workers survive in this suffocating condition?"

Another BNP leader Maj (Retd) Hafizuddin Ahmed said, "The government should immediately procure rice through spot tenders and introduce VGF and rationing to bring the situation under control."

Jamaat-e-Islami Ameer Matiur Rahman Nizami said, "Prices went up abnormally and all should work together in facing the problem. The government must ensure fertiliser during the Boro cultivation, otherwise it might aggravate the situation."

Staff Reporter

The Awami League yesterday backtracked from its demand for holding general elections in June-July that it made the day before (Thursday).

The Awami League (AL) Presidium, the highest policymaking body of the party, at a meeting on Thursday demanded early polls jettisoning the roadmap, which outlined holding of the general elections within December this year. In a sudden turn-around yesterday, senior leaders of the AL, including its Acting President Zillur Rahman, extended support to the Election Commission's roadmap for the general national elections.

Zillur Rahman also hinted that his party would support if the Government decides to send detained AL Chief Sheikh Hasina abroad for treatment.

Reiterating their demand to the Caretaker Government to open dialogue with the political parties to resolve the staggering political crisis, the AL leaders demanded immediate and unconditional release of Sheikh Hasina.

They said this while addressing a discussion meeting organised by its students front-Chhatra League at the party's Dhanamondi office. The meeting was held marking the 60th founding anniversary of Chhatra League with its President Mahmud Hasan Ripon in the chair.

Taking part at the discussion meeting as Chief Guest of the ceremony, AL Acting President Zillur Rahman said AL was not against this Government and supports the election roadmap announced by the Election Commission (EC).

He said the country was now passing through a transition and called upon the Caretaker Government to hold the elections at the earliest possible time and hand over power to an elected government.

Demanding the release of detained party chief Sheikh Hasina, Zillur said she should be treated as per her doctor's advice-be it at home or abroad.

Speaking on the occasion, AL Presidium member Abdur Razzak urged all to remain alert and get united against those who want to divide the country by promoting militancy.

Presidium member Tofail Ahmed said they supported the 1/11 changeover but the present situation of the country was not expected after the changeover. "Had the present Government been efficient in handling problems people would not have to see the present crisis," he said.

Tofail urged the Government to sit with the political parties to solve the present crisis and implement the EC-announced electoral roadmap.

He also urged the Government to take pragmatic steps to hold the elections as soon as possible.

AL leaders, including Presidium member Suranjit Sengupta, Acting Genera Secretary Syed Ashraful Islam, Abdul Mannan, Abdur Rahman, Dr Hasan Mahamud and Dr Dipu Moni spoke at the programme.

Staff Reporter

Abandoning the Magnama-1 offshore exploration well in Block 16, British oil and gas explorer Cairn Energy Plc yesterday said it would soon begin drilling in Hatiya-1 exploration well.

The Magnama-1 offshore exploration well, a well in Bangladesh was to be plugged and abandoned after it failed to hit commercial gas reserves, Cairn said in a statement from its head office in London.

The announcement immediately hit Cairn shares price in the London Stock Market yesterday, when its shares traded down 1.5 per cent at 2,903 pence at 0903 GMT, according to a report received in Dhaka last evening.

The company said drilling was expected to commence soon on the nearby Hatia-1 project. It was, however, not clear as to whether Cairn has made the announcement about drilling in Hatia-1 exploration well, which is located 12 km northwest of Sangu gas field, to stabilize the price of its shares in the market.

The Cairn started drilling the well in October in the Magnama structure in the Bay of Bengal, some 60 kilometres south of Chittagong port.

Investors and the Bangladesh Government had high hopes for the US $117 million project exploring the Magnama structure in the Bay of Bengal.

But Chairman of the state-run Bangladesh Oil, Gas and Mineral Corporation or Petrobangla, Jalal Ahmed, said Cairn had failed to discover commercially viable gas with the Mangama well.

His comments have weighed on Cairn shares in recent days.

Cairn, in its statement said Magnama-1 was drilled at a crestal location to a total depth of 4,003 metres BRT to evaluate the potential for gas in abnormally high pressured sands beneath those productive at Sangu and elsewhere in the basin.

The well encountered a series of well developed sands in the deepest section drilled but these were not gas charged and the well is now in the process of being plugged and abandoned, the statement said.

Magnama-1 also encountered a number of thin gas bearing sands, which may be subject to further evaluation at a later date, it said.

Cairn operates the country's only offshore gas field at Sangu in the Bay of Bengal, producing up to 80 million cubic feet of gas per day (mmcfd).

BSS, Chittagong

As part of World Food Programme (WFP) grant, about 20,000 metric tonnes of rice from Japan and Thailand are scheduled to arrive at Chittagong port within a few days.

Another ship has sailed off from India carrying 14,800 metric tonnes of rice also part of WFP grant arrived at the port two days back and five more days will be required to unload the whole consignment, District Controller of Food, Chittagong, Salahuddin Ahmed told BSS yesterday.

He said about 1,000 metric tones of rice laden in containers from China as relief for Sidr- victims were off-loaded at the port two days back.

Food Department sources said partial amount of rice from Japan as per commitment given by the Japanese government for Bangladesh's Sidr victims has started reaching in phases from last two weeks at Chittagong port.

Meanwhile, ships carrying about 29,000 metric tonnes of wheat to be brought by CARE and Save the Children USA, two leading International NGOs, are expected to reach at Chittagong port on January 10.

On the other hand, leading private food importers said the quantity of privately imported rice and wheat are likely to increase in next few days following the sudden price rise in the domestic market.

Sources said most of the private food grain importers in the port city abstained from opening Letter of Credit for importing essential commodities, particularly rice and wheat, as they feared financial losses following price instability in the global market.

"The quantity of privately imported rice through Chittagong port was not over 50,000 metric tonnes in last two months due to high import cost," a leading importer told BSS preferring anonymity.

He said private import may increase within a short time following soaring prices of rice and wheat in the domestic market which would ultimately cause a sharp decline of rice and wheat in the local market.

Staff Reporter

Jamaat-e-Islami Ameer Maulana Motiur Rahman Nizami yesterday said the repetition of pre-1/11 situation was undesirable.

Addressing a meeting of the party's highest policymaking body, Majlish-e-Shura, at Al Falah auditorium in Magbazar in the city, he called upon all concerned for self-criticism on why and for what circumstances the President had declared the state of emergency resulting in the January 22 election, last year, cancelled.

"Everybody should look into the context of emergency and seek self-purification," he observed. He explained that the state of emergency was declared in the country due to an unavoidable situation without holding the general election on January 22 last year.

The Jamaat Ameer suggested for the practice of politics based on understanding and tolerance for greater national interests.

The Jamaat leader called upon the government for holding the general election in the country as per the roadmap announced by the Election Commission (EC) earlier.

"We hope a free, fair, credible and acceptable election will he held in the country on schedule," he said.

He also urged the government to remove all suspicions and doubts about holding the election.

The Jamaat leader mentioned that the January 22 election could not be held due to the "controversial role" of the then Election Commission (EC) and inaccuracy in the voter lists and suggested that the reconstituted EC has to be kept above all debates so that there is no obstacle to holding a free and fair election.

Criticising the demand for ban on religion-based politics, he said the Islamic ideology is being belittled and the growth of flourishing Islamic policies and values impeded through what he said such 'unrealistic' demand.

The demand will not have been made if it was considered that the Islamic politics can play an effective role in establishing good governance, transparency and accountability in the country, he observed.

Expressing his concern over price hike of essential commodities, including rice, the Jamaat Ameer said there is 'panic' amid a stagnant economic situation prevailing in the country and an abnormal price-hike of daily necessities like rice is seen everyday.

"All should take responsible role to reduce the people's sufferings so that no untoward incident occurs over the food prices," he said adding, "It is the government responsibility to remove the panic."

He urged the Government to take urgent steps to import rice and launch development activities, including agriculture rehabilitation and food for work programmes in the cyclone-ravaged areas.

The Jamaat Ameer proposed the authorities concerned to introduce food for work programme to accelerate the rehabilitation work in `Sidr'-hit areas of the country.

Among others, Senior Nayeb-e-Ameer of Jamaat Maulana Abul Kalam Mohammad Yusuf, Nayeb-e-Ameers-Maqbul Ahmed and Prof. AKM Nazir Ahmed, Secretary General Ali Ahsan Muhammad Mojaheed, Maulana Abdus Sobhan and Maulana Delwar Hossain Sayeedi, attended the meeting.

Staff Reporter

Economists, engineers and politicians at a roundtable discussion yesterday explained the crisis in the power sector as a deliberate creation of the past governments which, being steeped in corruption, served the interest of foreign companies.

They said corruption in the power sector was massive. World Bank and IMF suggestions dominated the Government policy. The Power Development Board (PDB) was broken into pieces according to suggestions of the WB.

Foreign companies were entitled to generate power under unequal treaties. Trade Unions, which opposed these moves, were blamed for disturbing 'reform' initiatives. They said the whole sector was deliberately made inefficient to establish arguments for privatisation. Development and self-sufficiency became a far-reaching goal, and ultimately dependence on foreigners increased. According to government policy, no decision in the power sector could be taken without apprising the Prime Minister. So, all the corruption in the sector happened within her knowledge, they said.

National Committee to Protect Oil, Gas, Mineral Resources, Power and Port organised the roundtable discussion on "Endangered Power Sector and Our National Interest" at the National Press Club chaired by its convenor Engineer Sheikh Muhammad Shahidullah Sikhder.

The speakers observed that hectic move to increase power generation is creating more opportunities for corruption. Production cost and price of power is increasing beyond the ability of low income people.

TIB Chairman Prof Muzaffer Ahmed said the PDB did not prepare the balance sheet and there was no statistics on costing, accounting and investment there. He said corruption in Rural Electrification Board (REB) is now much more.

He suggested to handle the power sector under a multidisciplinary management system.

Prof Serajul Islam Chowdhury in his deliberation blamed the ruling class for massive corruption and plundering from the power sector. He stressed on establishing of "Government of the people's authority snatching power from the ruling class to protect national assets.

Awami League Presidium Member Matia Chowdhury criticised the Caretaker Government for its failure in various sectors. "You are criticising the politicians. But what are you doing? Who ruled the country for 21 years? Let them be accountable for their deeds," she said.

Workers' Party President Rashed Khan Menon said power crisis is a national crisis and a national consensus is necessary to tackle it.

Justice (Rtd) Golam Rabbani suggested amendment to the penal code under which petty thieves are punished but big wigs go unpunished despite proven charges of massive corruption.

Economists Dr Atiur Rahman, Abu Ahmed, Anu Muhammad and M M Akash stressed on policy-sovereignty of the state to protect and upgrade national assets.

Prof M Shamsul Alam, director of the Institute of Energy Technology at Chittagong University of Engineering and Technology, presented keynote speech at the roundtable.

BNP standing committee member Lt Gen Mahbubur Rahman, CPB General Secretary Mujahidul Islam Selim, JSD leader Hasanul Haq Inu, Jatiya Party leadr GM Kader, former Adviser to the caretaker Government Amanul Islam Chowdhury, former deputy governor of Bangladesh Bank Khondokar Ibrahim Khaled, Prof AAMS Arefin Siddiqui, Awami League leader Col (Rtd) Faruk Khan, BNP leader Rizvi Ahmed, Coordinator of the Left Democratic Alliance Saiful Islam and Moshrefa Mishu among others, spoke in the function.

Staff Reporter

The caretaker government's main objectives, including much-awaited political reforms may be hampered if the prices of essentials cannot be kept under the purchasing power of common people, according to economists.

In spite of pressure on budget, they suggested the government to provide essential commodities to people at subsidized rates.

According to the economists, income of people has not increased in one hand while a deep sense of panic now prevails in the mind of them about future. Many people have been passing their days in untold sufferings.

They said many have been praising this government, but the government itself does not know what people now start to thinking about it.

"The caretaker government's objective to achieve its goals may be hampered. It will be difficult for the government to achieve its objectives, including political reforms if instability continues to prevail in the local rice market," said economist Prof Wahiduddin Mahmud yesterday.

He said the government needs to bring confidence back in the mind of people immediately by arresting the price hike of rice and other essentials.

"The government needs to pay attention to generate income opportunities, increasing purchasing power of people and keeping the prices of essentials in markets under control," he said.