The New Nation - Internet Edition

BUSINESS REPORT

Maize Association of Bangladesh (MAB) has said that the government has fixed the minimum export price of maize at US$600 per metric tonne without consulting with them.

"Without consulting with us, the government fixed the minimum export price of maize at Tk 42 per kg and domestic selling price at Tk 13 on August 6 last though a farmers has to spend Tk 15-16 for producing one kilogram of maize. This sub-sector of agriculture is going to face a disaster due to the decision of the government and the country will have to meet the requirements by importing maize in future," said Md Mizanul Huq, secretary general of Maize Association of Bangladesh. He said the livelihoods of some five lakh maize farmers are now at stake due to the government's decision.

Mizanul Huq said maize is an important crop in Bangladesh. Bangladesh used to spend Tk 2,000 crore annually for importing maize only five years ago. Owing to the far-reaching plan of Maize Association of Bangladesh and untiring efforts of farmers, some five lakh farmers of the country now cultivate maize on 2.50 hectares of non-arable land. As a result, country is now saving foreign currency worth Tk 3000 crore a year. In such a situation the government has fixed the minimum export price at Tk 42 and selling price at Tk 13 in domestic market though the farmers have to spend Tk 15-16 for producing a kilogram of maize.

The government, in a rare move, on August 6 last fixed the minimum export price of maize at US$ 600 per metric tonne to maintain a stable price in the country.

The decision was taken at an inter-ministerial meeting held at the Ministry of Fisheries and Livestock conference room with Special Assistant to the Chief Adviser Manik Lal Samaddar in the chair.

Agriculture Adviser Dr CS Karim and secretaries of the ministries of commerce, agriculture and fisheries and livestock and other officials concerned were present at the meeting.

"We have fixed the export price at US$ 600 after reviewing the local requirements and demands," Manik Lal Samaddar said after the meeting.

He said maize is an important raw material for the domestic poultry industry and the decision has been taken to maintain the prices of eggs and chickens at a tolerable level.

"But we have also decided to have a close look at the price of maize in the local market and the concerned businessmen assured us that the maize price will not be below Tk 13 (US$0.19) per kilogram," Samaddar said.

He, however, assured that the government will closely monitor the local market and the minimum price restriction will be withdrawn if maize price at local market falls below Tk 13.

According to available official data, the country now produces 21.67 lakh metric tons of maize annually against estimated demand of 30 lakh tons.

The price of maize suddenly went up a couple of months back as some organizations and individuals resorted to export maize.

Maize currently is sold at Tk 12/13 per kg compared to Tk 11 last year and Tk 9 in 2006, official sources said.

On May 12 this year, Fisheries and Livestock Ministry requested the Agriculture Ministry to impose ban on export of maize as the price of this important component for poultry industry was shooting up.

Bangladesh Poultry Industries Association and Bangladesh Feed Industries Association in two separate letters also urged the ministries concerned to impose ban on export of maize.

They said maize prices began to rise at the start of current fiscal year after two companies Abdul Gafur and Fair Trade exported 230 and 200 metric tons respectively to Malaysia and Indonesia. The export price varied from Tk 18,360 to 19,040 per ton.

Besides, several others were also trying to export maize to take advantage of higher prices in the international market.

The Bangladesh Poultry Industries Association and Bangladesh Feed Industries Association in their letters pointed out that earlier local market price of maize was Tk 12,800 per tons. But it went up to Tk 14,000 after exports started.