The New Nation - Internet Edition

High rice production in Bangladesh likely: FAO

BUSINESS REPORT

World rice production is expected to increase in 2008 by 12 million tonnes or 1.8 percent, assuming normal weather conditions, according to Rome-based Food and Agriculture Organization (FAO).

Production increases would ease the current very tight supply situation in key rice producing countries, according to the first FAO forecast for this year. International rice trade is expected to decrease, mainly due to restrictions in main exporting countries.

Sizable production increases are expected in all the major Asian rice producing countries, especially Bangladesh, China, India, Indonesia, Myanmar, the Philippines and Thailand, where supply and demand are currently rather stretched. Governments in these countries have already announced a series of incentives to raise production.

Production outlook is also positive in Africa, where high world prices may sustain a two percent growth, particularly in Egypt, Guinea, Nigeria and Sierra Leone.

Production is expected to recover strongly in Latin America. Rice production in the European Union is also expected to rise while it may contract in Japan, one of the few countries where producer prices fell last year.

In the rest of the world, a dismal production is forecast in Australia, reflecting extremely low water availability. A reduced crop is also expected in the United States, mainly as a result of a cut in area caused by mounting competition from more profitable crops.

Short-term volatility

"The international rice market is currently facing a particularly difficult situation with demand outstripping supply and substantial price increases," said FAO Senior Economist Concepcion Calpe.

"Higher rice production in 2008 could reduce the pressure, but short-term volatility will probably continue, given the very limited supplies available from stocks. This implies that the market may react very strongly to any good or bad news about crops or policies," she added.

According to the latest FAO estimates, paddy production rose by one percent in 2007 to 650 million tonnes, which implies that it would be the second consecutive year where production growth would fall short of population growth, resulting in a drop of rice production on a per caput basis.

Trade moves

International trade in rice in 2008 is currently foreseen to reach 29.9 million tonnes, 1.1 million tonnes lower than the revised 2007 trade estimate.

The very tight supply situations that most exporting countries may face until the last quarter of the year and the associated restrictions on exports lay much behind the anticipated drop of rice trade in 2008.

Currently, China, India, Egypt, Vietnam, four among the traditional rice exporting countries, as well as Cambodia, have either imposed minimum export prices, export taxes or export quotas/bans. Such moves are expected to reduce rice exported from these countries.

As for imports, the drop reflects prospects of lower shipments to Bangladesh, Indonesia and the Islamic Republic of Iran, as supply and demand situation in those countries may ease somewhat compared with last year.

Prices

Since January 2008 international rice prices have seen a steep increase of about 20 percent, according to the FAO All Rice Price Index.

Recent sudden price rises reflect the very limited supplies available for sale, especially given the wide range of restrictions imposed by key major exporting countries.

The tendency for further price rises, however, may diminish somewhat in the next few months, with the arrival of new rice harvests in Brazil or Uruguay but also in Bangladesh, India, Indonesia, Thailand and Viet Nam. "So far, prospects regarding these crops are positive," Calpe said.

Trade challenges ahead for Bangladesh in US market

BUSINESS REPORT

This year marks the expiration of two important programmes that allow duty-free access to the US market for CARICOM and other developing countries, said American Chamber of Industry and Commerce.

One of the programmes is the Caribbean Basin Initiative (CBI) which was established in 1983 to promote economic growth and development by stimulating investment in export industries.

CBI allows preferential access on a unilateral basis to the US market.

CBI is the collective term given to the Caribbean Basin Economic Recovery Act (CBERA) and the Caribbean Basin Trade Partnership Act (CBTPA). These Acts allow duty-free access to a number of manufactured goods, including TT's fastest growing exports - fuel ethanol, methanol and petroleum products.

In fact, TT is the largest user of CBI within CARICOM. CBERA and CBTPA require a waiver approved by all other WTO members to operate legally under WTO rules. The waiver on CBERA expired December 31, 2005, and while a renewal was sought, Bangladesh, Brazil, China, India, Pakistan and Sri Lanka initially objected - Paraguay remains the only hold out. The CBERA (including CBTPA) will expire on September 30 2008 unless the US Congress passes new legislation to replace it.

AmCham understands that a bill has been introduced by House Ways and Means Committee chairman Charles B Rangel, to extend certain trade preferences programmes, including CBTPA. The bill proposes to extend CBI, GSP and the Andean Trade Preference Act to September 30, 2010.

Whilst this bill is in its preliminary stages we understand that it may have to overcome several challenges namely: US Presidential elections and Colombia FTA politics to name a couple.

It is important therefore that as a region we begin lobbying through the various channels open to us.

It is at this stage that we can make an impact on the programme. We have the opportunity now to work towards shaping a bill that will benefit CARICOM/ Caribbean nations - as most of the other recipients of the CBI are moving towards a free trade agreement with the US - namely Panama. We must work together to expand the programme to allow for services - financial and professional; expand the list of products eligible for duty-free access and make the preference programme for Haiti permanent.

It is also critical that TT take the lead in this regard and AmCham TT is willing to spearhead the effort to ensure the timely passage of this bill. We look forward to the collaboration of all stakeholders and would welcome everyone's input in this regard.

AmCham will be sending letters to Members of Congress from companies and business organisations benefitting from CBTPA. All corporations who are beneficiaries of the CBTPA can contact AmCham so that we fully represent your views.

We must all work together and do our part in lobbying our Government and CARICOM to get this Bill passed. CBTPA must be extended so that we can continue to diversify our economies and our manufacturers and the US can benefit from a predictable market.

Key lending rate in Bangladesh to average at 15pc in 2008: EIU

BUSINESS REPORT

London-based Economist Intelligence Unit (EIU) expects the key lending rate in Bangladesh would average at 15 percent in 2008 as compared to 16 percent in 2007.

In its April report on Bangladesh, the EIU said Bangladesh Bank is expected to maintain an accommodative monetary policy stance during the early part of the forecast period, despite persistent inflationary pressures.

"It would continue to ignore calls from the IMF to raise interest rates and is unlikely to tighten policy over the short term," said the report, adding that although mounting inflationary pressures remain a major concern, BB is expected to stress that "economic growth is also a priority."

EIU is a specialist publisher serving companies managing operations across national borders. For 60 years, it has been a source of information on business developments, economic and political trends, government regulations and corporate practice worldwide.

EIU has estimated that the consumer price inflation in Bangladesh would average 8.9 percent in 2008, after recording an average of 9.1 percent in 2007.

"The inflation rate slowed slightly to 11.4 percent year-on-year in January from a nine-year high of 11.6 percent in December 2007," it said.

The report expected that the budget deficit in fiscal year 2007-08 to rise to the equivalent of 5 percent of GDP compared with the official target of 4.7 percent. GDP is expected to grow by 5.7 percent in 2007-08 and by 6.2 percent in 2008-09.

The trade deficit is likely to swell to record levels as demand for industrial raw materials strengthens and international oil prices stay high. Strong inflows of workers' remittances resulted in a small current-account surplus in July-December 2007.

The report said the fiscal policy would remain expansionary over the forecast period.

Liberalisation of the banking sector is expected to continue in 2008-09, although progress is likely to be slowed following the government's decision in March to cancel the sale of a stake in one of the four nationalised commercial banks to Prince Bandar of Saudi Arabia.

National Phone holds Meet the Distributor programme

National Phone, country's largest PSTN telecom operator arranged a 'Meet the Distributor' programme on March 31 last for all the distributors of Dhaka city. The programme was held at Sales and Marketing Division of National Phone Dhaka office in Gulshan. Managing Director of National Phone Maj (Rtd) Mohammad Jahangir in his speech presented the existing activities and future plan of National Phone.

Among others, Chief Financial Officer Mujibur Rahman, Project Director Col (Rtd) Asgar Kaderi, GM Operations Lt Col (Rtd) Neaz-Ur-Rahim, Chief Technical Officer Md Nurul Absar presented their speeches.

The distributors also presented their views. The whole programme was conducted by GM Sales & Marketing Hasan Mohammad Zahid.

Belgium co to invest $2m in Dhaka EPZ

M/s Satexco Limited, a Belgium company is going to set up a security clothing industry in the Dhaka Export Processing Zone.

This100 per cent foreign-owned company will invest US$2 million and will produce security clothing.

The company will create employment opportunity for 250 Bangladeshi nationals.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the M/s. Satexco Limited in BEPZA Complex, Dhaka on April 1. General Manager (Investment Promotion) of BEPZA and Country Director of M/s. Satexco Limited signed the lease agreement on behalf of their respective organizations.

The Executive Chairman of BEPZA and other officials were present on this occasion.

Etihad flying high in first quarter

Etihad Airways has enjoyed a record-breaking first quarter and remains on track to achieve its 2008 target of carrying six million passengers by the end of the year.

The Abu Dhabi-based airline carried 1.4 million passengers during the first three months of 2008, compared to one million for the same period in 2007, an increase of 40 per cent. The airline achieved average seat factors of 75 per cent across its network of 45 destinations during the first quarter of 2008, which covers the months of January, February and March.

Year-on-year, the airline's seat factor has increased by seven percentage points as Etihad continues to expand its global flight schedule and add aircraft to a fleet which will grow to 40 by the end of 2008.

Yield, the average amount received per ticket, also rose by 25 per cent compared to the same period last year. Etihad has launched one new destination so far in 2008, starting flights to Beijing on 30 March. In the summer, the airline will also begin flying to James Hogan, Etihad Airways' chief executive, said: "The performance of Etihad during the first quarter of 2008 has been outstanding, breaking all previous records. As we continue to expand our global network and strengthen our schedule, we remain confident of achieving our target of carrying six million passengers by the end of the year.

A key highlight of the first quarter has been the performance of Etihad's premium cabins. Across the network, the airline's award-winning business class cabin achieved an average seat factor of 77 per cent.

James said: "For seat factors in business class to be higher than the economy cabin is highly unusual and certainly one of the most pleasing features of our quarter one performance. These figures provide positive evidence that the continued investment we are placing during 2008 upon improving the products and services we offer our premium customers is paying dividends."

The announcement of Etihad's first quarter performance follows the recent introduction of the airline's new summer flying programme. The programme, 47 per cent larger than summer 2007, will see Etihad operate a total of 728 weekly flights compared to 494 in the same period last year.

ADF-UAE team meets Dr Yunus

A delegation from Abu Dhabi Fund for Development (ADF)-UAE led by Mohammed Saif Al Suwaidi called on Dr Mohammed Yunus, the founder of Grameen Bank.

During the meeting, the delegation expressed their willingness to participate in the development activities of rural credit in Bangladesh.

IBBL, Amirtek sign deal on instant cash service

BUSINESS REPORT

An agreement on instant cash service was signed recently between Islami Bank Bangladesh Limited and Amirtek Remittance and Exchange Services Limited in Singapore recently.

Deputy Executive President and Head of International Banking Wing of IBBL Md Habibur Rahman and Director of Amirtek Remittance and Exchange Services Limited Mary Ho signed the agreement on behalf of their respective organisations. Assistant Vice President of the bank Md Siddiqur Rahman and Director of Amirtek Remittance and Exchange Services Alfred Ho were also present on the occasion, among others.

After this arrangement, the recipients in Bangladesh will be able to receive the funds sent by expatriates in Singapore from any branch of the bank instantly without opening any account with the bank.

Mixed fertiliser factory set up at Chandpur

OUR CORRESPONDENT

From Chandpur

A mixed fertiliser factory set up at Dali Ghat here has been producing fertiliser since 2006.

The factory named Meghna Fertiliser Factory Ltd is producing mixed fertiliser, zinc and magnesium fertiliser.

Experts said the fertilisers are very useful in enhancing soil fertility and prices of the fertilisers are also cheaper than the chemical fertilisers. Farmers of the district have been using locally produced mixed fertilisers in paddy and potato cultivation.

5,000 Biman officials submit wealth reports

BUSINESS REPORT

Over 5,000 officials of Biman Bangladesh Airlines Limited, both in and out of service, have submitted their wealth statements to the army-led national taskforce against serious crimes.

Sources with the national airlines, now a public limited company, said the taskforce on February 12 asked the Biman officials to submit their wealth statements.

The taskforce, which is under the supervision of the National Coordination Committee on serious crimes and corruption, is now scrutinising the wealth statements.

'Some of the officials are being questioned on telephone while a few have been asked to provide documents against their wealth statements,' a Biman official told The New Nation.

The official said the taskforce would submit a list of the suspected corrupt Biman officials to the Anti-Corruption Commission (ACC) for taking necessary action.

According to the Biman sources, about 1,800 members of the Biman, who went on retirement under its Voluntary Retirement Scheme (VRS), would not be left out of the clean-up drive.

The investigators are collecting information about them and will ask them to submit necessary papers and documents to substantiate their wealth statements.

Biman Bangladesh Airlines in the middle of last year offered its employees the golden-handshake option under the VRS as part of the government plan to turn the national flag carrier into a public limited company (PLC).

MA ELT-a fast growing modern day professional degree

Iffat A.N. Majid

Even a few years back any mention of an MA in English meant a Masters degree in English Literature. Schools and colleges everywhere had teachers teaching English language with no clue about language teaching, banking only on their instincts and memories of their own school and college days for any success in language teaching. When I first became a language teacher, I was required to write an article related to language teaching but to my chagrin I realised that despite having an MA in English I had no real substantial knowledge or the area at all. Our syllabus in those days at Dhaka University did not incorporate any course related to language. Luckily I got the opportunity to go abroad for a Masters degree in ELT. When I came back I vowed to pick up any opportunity to offer ELT programmes to language teachers and so I did. Now to my delight, I find that ELT is turning out to be one of those fields or modern day subjects that are consistently gaining in popularity. One of the best programmes being offered in this field is at Eastern University. As an MA in ELT (English Language Teaching) is exclusively a professional degree, students from Eastern University start getting job offers even before they get to complete their degree. In an era of employment crisis this is a very positive sign indeed! On the other hand those students of ELT who are already practicing teachers from schools, colleges and universities, claim to have gained substantial professional development in their field, which is enabling them to move on to better jobs. The MA ELT programme at EU becomes all the more exclusive by dint of the quality of its teachers which very few private universities can really boast off. Students come in to attend classes not only from Dhaka but also from outside Dhaka as well and highly satisfied students make sure that they bring in at least some of their friends before they leave. Unfortunately many other private universities have also started opening up MA ELT programmes, which are nothing but language courses under a different cloak. There are very few private universities like EU that offer pure MA ELT degrees comparable to reputed western universities. It is therefore strongly advised that students who are really interested in how to teach a foreign language and learning things by doing, a good survey of the syllabuses should be done before taking admission into any MA ELT programme.