The New Nation - Internet Edition

Staff Reporter

The government yesterday decided to form a probe committee to identify the causes of abnormal price rises of MS rod in the local market, amid protest from different stakeholders.

In the recent days price of iron rod of 60-grade rose to Tk 74,000 per ton that hit hard country's construction industry. Most of the construction works both in the government and private sector became stalled leaving the implementation of Annual Development Programme (ADP) at lower rate.

Commerce Adviser Dr Hossain Zillur Rahman at his office in an emergency meeting with the stakeholders took the decision and directed the committee to submit its findings by April 25.

Leaders of steel manufacturers, real estate developers and other government agencies like National Board of Revenue and port authorities were present, among others, in the meeting.

Following the request of manufacturers the meeting also made a number of decisions in order to make the sector more competitive.

The decisions include widening the scope of importing scrap ship, undertaking necessary measure to keep import of finished rod of 60 grade open and to fix reasonable rates of duty by determining the differentials between the duty structures for re-rolling mills and ship-breaking industries.

Commerce Secretary Firoj Ahmed and Additional Secretary Golam Mostakim, TCB chairman Mohammad Ziaul Islam, NBR member M Farid Uddin, President of Bangladesh Re-rolling Mills Association Ali Hossain and REHAB president Mokarram Hossain were, among others, present at the meeting.

The Commerce Ministry will again sit with the stakeholders of steel and construction sectors on April 25 where the big players in the sector will be asked to be present.

After the meeting, Commerce Adviser Dr Hossain Zillur Rahman told newsmen that the enforcement of the VAT law would provide the scope to know the stock position of any business.

"So far, such law has not been enforced, but now we have decided to enforce it under the legal coverage to find out actual reasons and the persons responsible for the abnormal price escalation," he said. "But the spirit behind the decision is not to punish anybody," he added.

"The decision of importing 60-grade MS rod will create huge investment opportunity in the country's ship-scrap industries," Zillur further said.

Now the ship-crap business is confined within 22 business houses in the country, only 10 of whom are active who have scope to run syndicated business.

It may be mentioned here that an intelligence agency has reported the government that one leading iron rod manufacturer is manipulating the market and making extra profit. Some of the manufacturers joined the company and running a syndicate and destabilising the market.