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Productivity improvements critical for food security in South Asia: South Asia regional conference on managing food price inflation has started

Newnation BUSINESS REPORT

The recent food prices inflation has created enormous hardship for the poor families in the South Asia region.

Afghanistan and Bangladesh, net food importers, have suffered the most from the food price crisis. The food price crisis makes harder for the South Asian countries to attain the Millennium Development Goals. The experience suggests the urgency with which longer-term issues of food security need to be addressed in South Asia.

To facilitate a debate and discussion on the longer-term food security issues, the South Asia Region of the World Bank, the World Bank Institute, and the Power and Participation Research Center (PPRC) yesterday jointly organized a 2 day long conference on 'South Asia Regional Conference on Managing Food Price Inflation.

International and local experts and policy makers from six South Asian countries-Afghanistan, Bangladesh, India, Nepal, Pakistan and Sri Lanka-- exchanged experiences and discussed the mix of policy options and programs available to governments to manage food price inflation in the short, medium and longer term. The Advisor for finance and planning, Government of Bangladesh, Dr. Mirza Md. Azizul Islam inaugurated the session today.

"The adverse effect of the rise in global commodity prices on macroeconomic balances has been substantial. South Asian countries have seen a sharp increase in fiscal deficits and a worsening in the balance of payments. Inflation has been hit badly." said Sadiq Ahmed, South Asia Regional Director, World Bank. For the first time in South Asia's history all countries have simultaneously experienced double digit inflation rates, with 20 plus rates in Afghanistan, Pakistan and Sri Lanka. Economic growth is showing signs of slowdown. "The emerging global financial crisis is adding fuel to the fire, with further adverse consequences for macroeconomic balances and growth", Sadiq Ahmed added.

Although farmers benefit from higher food prices, on a net basis the food price inflation has contributed adversely to the poverty level in South Asia. This is because of the high share of food expenditure in the consumption basket of the poor and also because there are many more poor household who are net buyers of staple food than net sellers. In Bangladesh, food price shock may have increased poverty rate by around 3 percentage points. A World Bank survey finds nearly 8 percent of the surveyed households pulled their children out of schools to get jobs to assist their families cope with the crisis.

'The World Bank is helping countries address the global price shocks. The World Bank Group created a new $1.2 billion rapid financing facility-the Global Food Response Program-in May 2008 to speed assistance to the neediest countries.' said Vinaya Swaroop, Acting Country Director, World Bank Bangladesh, 'Last Thursday we signed an agreement with the Government of Bangladesh for a $130 million budget support under this facility. This credit will enable the Government to expand the social protection programs helping the poorest people dealing with rising food costs'.

Although food prices are coming down, it is very important that policy makers pay attention to the long-term challenge of raising agricultural productivity in order to achieve food security. The productivity levels for rice and wheat in South Asia are significantly lower than levels found in Europe, North America and East Asia.

"Public spending on irrigation, rural roads, rural electricity, technology and on-farm research and extension will be critical for raising productivity" said Sadiq Ahmed. Public policy also needs to focus on reducing the vulnerabilities resulting from climate change and paying greater attention to cross-boundary water management.

Beximco Pharma to receive export approval to Gulf countries

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Beximco Pharmaceuticals Ltd. ("BPL" or the "Company"), the leading pharmaceutical manufacturer and the largest pharmaceutical exporter from Bangladesh, announces the achievement of a milestone yesterday following the receipt of approval from the Ministry of Health of Gulf Cooperation Council (GCC) countries for BPL to commence export of medicines into the GCC. BPL is the first company from Bangladesh to receive this approval.

The GCC is one of the most active trade blocs of the world and at present has the fourth highest GDP per capita among all the trade blocs. In 2007 the overall GDP of GCC countries was $1,112 billion and this is expected to reach $1,210 billion by the end of 2008. To foster further cooperation within the bloc, the member countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, established a common market from 1 January 2008.

The combined pharmaceutical market of the GCC countries is currently valued at over US $4 billion and this market is principally enjoyed by multinational companies from Europe and USA.

In February 2008, a joint inspection committee of the Ministry of Health of GCC countries visited the oral solid dosage and inhaler facilities of BPL at Tongi in Bangladesh. The rigorous audit by the inspection team found BPL's manufacturing facilities to be world class, meeting the stringent global Good Manufacturing Practice (GMP) standards. In the last meeting of Ministry of Health of GCC, held at Riyadh, Saudi Arabia the Executive Board of Health Ministers' Council approved the manufacturing facilities of BPL, opening the way for the Company to commence export into the rapidly growing pharmaceutical markets of the Gulf.

The Company has also established business partners for all GCC countries and a number of senior business delegation teams from different GCC countries have visited the BPL's manufacturing facility in recent months. These distributors praised the quality and packaging of BPL products and believe that they will have good market acceptance in GCC countries. The Company expects to commence export to these countries imminently.

Nazmul Hassan, Chief Executive Officer of Beximco Pharma said:

"As part of our global expansion plan, we have always considered the Middle East as a market with great potential for Beximco Pharma and with the establishment of a common market of GCC countries this region has become one of the most attractive pharmaceutical market blocs in the world.

As part of our expansion strategy in the Gulf, last year we signed agreements with highly respected pharmaceutical distributors in the region, including Gulf Generics which is owned by the members of the Kuwait Royal family. With this approval, we aim to commence export of our products into this region very soon and expect that this will enable us to substantially grow our international business."

DBBL organises workshop

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Dutch-Bangla Bank Limited organized a day-long workshop on "Marketing to Market Based Revaluation of Government Securities" for the concerned officers or executives from the different divisions of the bank yesterday.

Md Yeasin Ali, Managing Director of the bank inaugurated the workshop.

The workshop aimed at familiarizing the participants with the conceptual aspects of Statutory Reserve: Overview of Regulatory Requirement, Mark to Market of Treasury Securities: Review of Related Circulars and Revaluation Process of Securities etc.

AHM Nazmul Quadir, Additional Managing Director of the Bank spoke on the occasion.

Among others, Khan Tariqul Islam, Senior Executive Vice President and Chief Financial Officer and Hossain Akhtar Chowdhury, Vice President and Head of International Division (Treasury Back Office) were present on the workshop.

SIBL inaugurates 27th branch at Chowmohoni

Social Investment Bank limited (SIBL) opened its 27th Branch at Chowmohoni, Noakhali on November 12 last.

SIBL Chairman Abdul Awal Patwary formally inaugurated the branch as the chief guest.

SIBL Vice Chairman Alhajj Nasiruddin and Directors Major (Retd) Dr Md Rezaul Haque, and ex-Director Md Shah Alam were present as special guests at the opening ceremony.

It was presided over by the bank's Managing Director KM Ashaduzzaman. SIBL Additional Managing Director Abu Sadek Md Sohel, senior executives, clients and local elites were present on the occasion.

In his speech, Abdul Awal Patwary said, the difference between the SIBL and other traditional banks is Shariah. As an Islamic bank SIBL works for the good of the poor people.

He explained the three-sector model of the bank and urged the people to provide co-operation to implement the programmes of SIBL.

He also lauded the state-of-the-art information technology including on line banking services of SIBL.

Managing Director of SIBL said Cash Waqf is a unique product of SIBL, which might contribute to the development of mass people and SIBL was the pioneer that is implementing this program.

KM Ashaduzzaman, Managing Director narrated the three-sector model of the bank before the audience and hoped that through implementing these unique programmes SIBL can contribute to a great extent to the economy of the country.

He said from the beginning SIBL is providing electronic banking services to its clients.

He promised to render most modern banking services being equipped with state- of- the-art automation technology.

Arha holds AGM

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The general and acquaintance meeting of shareholders and members of 'Arha Multipurpose Co-operative Society Ltd' was held on Friday at its central office in the city.

Abu Bakar Siddiquie, President, of the organisation presided over the meeting that was conducted by Mir Sabed Ali (Montu), Joint Secretary General of the society.

Md Arif Khan Rony, General Secretary, placed the annual budget that was approved by the directors and members of the cooperative.

Banglalink, Katalyst sign deal on SME dev

Banglalink has recently signed an agreement with Katalyst under which they have formed a strategic alliance to serve small and medium enterprises (SME) through mobile and ICT based services and SME development activities

The partnership between Banglalink and Katalyst will develop innovative services that will help the small and medium enterprises to make more informed decisions and assist in their growth and productivity.

Moreover, both the organizations will organize various capacity building programs and trainings for SMEs.

Rashid Khan, CEO & Managing Director, and Omer Rashid, Chief Commercial Officer, Banglalink, Peter Roggekamp, General Manager and Manish Pandey, Deputy General Manager, Katalyst and other senior officials from both the organizations were present during the signing ceremony.

Banglalink is the only telecom operator in Bangladesh to offer a special SME package that caters to the communication needs of the SMEs.

It has developed the package along with useful value added services that provide the best value for money for the businesses of SMEs; and has established a dedicated nationwide sales network that reaches the doorsteps of the SMEs.

Katalyst, a market development initiative funded by DfID, SDC, CIDA and the Royal Dutch Embassy and implemented by Swisscontact and GTZ-IS, has the aim to enhance the growth and competitiveness of Bangladeshi private sector in contributing to poverty alleviation. As one of the means to achieve such objective, Katalyst facilitates, among others, the development of demand-led ICT driven business services for a number of industries that improve SMEs' access to information, markets and skills vital for growth.

PBL held branch managers' confce

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The Branch Managers' conference-2008 (Khulna Region) of Pubali Bank Limited held at AID Complex, Jhinaidah, recently. General manager and Chief Financial Officer of Pubali Bank Limited ATM Hasanuzzaman was present as chief guest. General Manager Fazlul Haq, regional head of Khulna Region presided over the conference.

In his speech ATM Hasanuzzaman urged all managers to achieve the targets fixed for the year 2008. he stressed on selection of potential borrower and try to enhance bank business. He emphasized on recovery of overdue, classified and write off loan on priority basis. He advised regional head and branch manager to keep close vigilance so that newly disbursed loans may not become overdue or classified by intensive supervision and close monitoring of the loan. He underscored the need for increased utilization of the modern information technology for qualitative improvement in the over all customer service of PBL as the bank has to operate in a highly competitive banking sector.

Executive of regional office, branch managers of Khulna region were also attended at the conference. Performance of the branches also evaluated in the meeting and necessary strategy and plans were taken to achieve the target fixed for the year 2008.

Perfetti Van Melle Bangladesh launches Creamfills Xtra

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Perfetti Van Melle, the Italian-Dutch confectionery leader, has announced the launch of a new candy named 'Creamfills Xtra' by Alpenliebe.

Creamfills Xtra is another exciting innovation from the company. The crunchy product has a soft center with a delicious creamy taste.

In order to be affordable to all consumers in Bangladesh, the product shall be available in single units, at a price of Taka 2. The consumer may also choose to buy a display box containing 60 pieces for Taka 120.

Mr. Ramesh Jayaraman, Managing Director of the company in Bangladesh, said "Our business in Bangladesh has grown rapidly owing to the high standard of our product quality and continuous innovation. Having built several successful brands like Alpenliebe, Center Fresh, Center Fruit, Mentos and Chlormint, we know that the consumers here are responsive to innovation as long as the product suits the local palate and is affordable for regular consumption. Consumer research has told us that the Bangladeshi consumer rates the Creamfills Xtra product highly. We believe that its product quality and innovative soft center will help this new product to succeed."

Perfetti Van Melle Bangladesh Pvt Ltd has a factory at Rajendrapur. Since 2005 when they commenced production in Bangladesh, they have changed the very nature of the confectionery market in Bangladesh by offering vastly superior products for the consumers' enjoyment.

Seminar on application of lubricants on gas engines held

Ranks Petroleum Ltd, the distributor of world renowned Shell Lubricants in Bangladesh, organised a seminar on Gas Engine Lubricants (Mysella) at Hotel Sheraton in the city recently.

The keynote speaker of the seminar was Schasfoort Thijs, Shell Global Product Specialist from The Netherlands.

Also from Shell there were Amardeep Gill, Distributor Markets Manager, Anwer Chishti, Technical Manager and Mr Rickard, B2B Marketing Manager.

The speakers highlighted the unique propositions on Shell lubricants. The seminar was attended by more than 100 guests from power generation sector and other related institutions. The seminar was chaired by Rumee Hossain, Managing Director, Ranks Petroleum Ltd. Shahan Alam, General Manager, and other high officials of the company were also present at the seminar.

Month-long trade fair begins in Satkhira

BSS, Satkhira

A month-long inter-trade fair began here on Thursday. Satkhira Chamber of Commerce and Industry organized the fair with the over all cooperation of Benaroshi Uvers Private Limited. The inaugural session was held at local Government Boys High School Football Ground premises.

Khulna divisional commissioner Md Younusur Rahman inaugurated the inter-trade fair as the chief guest while Satkhira Chamber President Sheikh Nurul Haq in the chair.

Satkhira deputy commissioner Md Mizanur Rahman, police super Mohammad Abu Shufian and Satkhira Poura Mayor Sheikh Ashraful Haq were present as special guests.

It was addressed, among others, by the managing director of Benaroshi Uvers PTL Mahmudul Hasan, Kamrul Haq Chanchol, OC Abdul Kauder Beg and Muhashin Hossain. A total of 90 various stalls have been set up in the fair.