The New Nation - Internet Edition

Hasanuzzaman Khan

The newspaper industry in the country has fallen into a severe crisis following an unprecedented rise in newsprint price, both local and foreign brands. Even under zero tariff facility imported newsprint costs Tk 66,000 per ton. The price will go up to Tk 84,000 per ton in coming December if the present trend continues. Last year newsprint was priced at Tk 51,000 per ton in the international market.

A number of newspapers had to cut on circulation to cope with the increasing cost of production.

Leaders of the BSP and the NOAB representing the newspaper owners met the Chief Adviser Dr Fakhruddin Ahmed on April 12 urging him to waive 15 per cent VAT imposed on imported newsprint.

It is almost a ritual on the part of the Chief Adviser's Office to send the proposal to the Finance Ministry for necessary action. But the proposal has not seen the light of the day. No follow-up action has been taken. Newsprint price continues to be skyrocketting forcing the closure of a number of newspapers.

In the domestic market low quality local newsprint prices have been increased unilaterally. Now local newsprint is being sold at Tk 58,000 per ton as against Tk 48,000 per ton in last March. The local newsprint price is Tk 7,000 more per ton than that of the imported ones.

The Newspapers Owners Association (NOAB) and the Bangladesh Sangbadpatra Parishad (BSP) in a statement condemned the unilateral increase in the newsprint price saying it is completely detrimental to the interest of the newspaper industry.

The newspaper owners association said, per ton price of local newsprint (Capital and Bashundhara) was raised by Tk 10,000 at one go putting the existence of the newspaper industry at stake.

On the other hand, the flow of private advertisements to newspapers has fallen abnormally following the economic recession in the business sector after 1/11.

The real estate sector, which earlier contributed maximum advertisements to newspapers, is in doldrums after 1/11. The mobile phone companies appear to be the only private sources to generate some advertisements for the newspapers and the private TV channels.

About 200 newspapers including dailies and weeklies have been closed down in the last one year.

The rate of Government advertisement is abnormally low. Government advertisement is distributed locally by the respective departments as per their rules. Earlier, it used to be centrally distributed by the DFP Dhaka office.

The payment was also made centrally. Now the newspapers have to suffer immensely to collect advertisement and their bills from far-flung areas of the country.

The NOAB and the BSP have demanded the enhancement of Government advertisement rate to Tk 832 per column inch.

The overall condition of print and electronic media is weak. The ownership in a number of newspapers and TV channels has changed. The editors of the Jay Jay Din, Jugantor and Amardesh have been changed. The ownership of two vernacular dailies and one English newspaper has been changed.

The electronic media has been hard hit by the on-going recession. An owner of private TV channel said, they failed to produce new programmes. They have to telecast old ones in new forms. They have to retrench many experienced employees as they run short of fund.

Private programme producers have crores of Taka in arrears with the electronic media owners. The package programme producers have formed an alliance to realise their outstanding dues, which have run into crores of Taka.

Three private channels have been closed in the last one year and five hundred employees have been rendered jobless.