The New Nation - Internet Edition

Formation of Price Commission to check price hike of essentials vital

NATION BUSINESS REPORT

A leading economist has suggested a price commission be set up involving the ministries of commerce, agriculture and finance to bring down prices of essentials within the reach of common people in a short span of time.

Welcoming the government's decision to cut diesel price at its first cabinet meeting, Chairman of Bangladesh Unnayan Sumannya Dr Atiur Rahman said that the commission could deal with all price-related policies for executing the government plan to cut the prices.

Describing the government's decision of reducing diesel price and raising subsidy on fertilizer as realistic, he said the production cost would come down drastically with the implementation of these steps.

"Commerce Ministry alone cannot handle the whole pricing process and that is why a coordination committee could be formed to implement the government's vision of lowering the prices of essentials beyond the expectation of commoners," he said.

President of Bangladesh Economic Association (BEA) Quazi Kholiquzzaman Ahmed said besides cutting diesel price and raising subsidy on fertilizer, the government should ensure a balanced distribution of fertilizer and ensure availability of diesel to the growers.

He also suggested reducing the price of kerosene so the poor can buy it.

"We have to reduce prices of essentials as those have already marked a downward trend in the international market. Businessmen have an important role to play to supplement the government's efforts in the regard," he said.

Prices of essentials already started plummeting at different markets across the country after the new government took over.

According to yesterday's market report of Trading Corporation of Bangladesh (TCB), prices of coarse rice at kitchen markets ranged between Taka 24 and Taka 27 against Taka 27 to Taka 30 a week ago. Edible oil sold at Taka 86 to Taka 92 against Taka 98 to Taka 104 a week ago.

Besides, lentil is selling at the city markets at Taka 75 to Taka 105 as compared to the range of Taka 78 to Taka 106 seven days ago and prices of most essentials witnessed downward trend in the city markets.

Yearly Managers' Conference 2009 held: Premier Bank achieves huge growth in deposits, advances

NATION BUSINESS REPORT

The Yearly Managers' Conference-2009 of The Premier Bank Limited was held on January 10 last at Bank's Executive Floor, Head Office, Banani, Dhaka.

Dr. H.B.M. Iqbal, Chairman of the Board of Directors of The Bank was present in the conference as chief guest. B.H.Haroon, MP, Vice Chairman of the Board of Director was present as special guest.

Managing Director Khondker Fazle Rashid presided over the conference. Directors Nurul Amin, Independent Director Abu Haniff Khan, Additional Managing Director Md Mokhlesur Rahman, all managers and divisional heads in head office of the bank participated on the occasion.

At the end of 2008, the bank has registered tremendous growth in deposits and advances and earned a tremendous profit of the bank.

Dr H.B.M. Iqbal, is his speech lauded the yearly achievement of the bank up to 2008 and called upon the managers to prepare themselves in a way that they can meet the challenges ahead in 2009 and fulfill the budgetary target allocated for the year and he expressed his satisfaction for achieving the profit for the year-2008.

B.H. Haroon, MP also spoke on the conference.

Khondker Fazle Rashid expressed his satisfaction over the efforts and achievement of the bank. He urged the managers to keep up the spirits to sustain the ongoing progress of the bank.

He pointed to Personal Loan and also financing of Small & Medium Enterprises as a means to achieving the goal.

The Managing Director expressed his commitment to provide the customers with new and diversified products and services in a bid to keep pace with the prevailing market demand.

IFIC Bank holds course on Productivity Improvement

IFIC Bank Ltd. and National Productivity Organization of Ministry of Industries jointly organized a two-day long course on "Productivity Improvement through Competitive Cost and Quality Service" on January 4-5 last at its Academy at Chamber Building, Motijheel Dhaka. A total number of 35 executives and officials from different branches and head office attended the course.

Dr Md. Nazrul Islam, Director, National Productivity Organisation (NPO) attended as chief guest while Mosharraf Hossain, Managing Director of the bank chaired the inaugural session of the course. Mohammad Abdullah, Deputy Managing Director of the bank also spoke on the occasion.

Dr Md Nazrul Islam, Director and senior faculties of National Productivity Organization were the speakers of the course. Executive Vice President and Head of Training & Research Ms Zaitun Sayef also present on the occasion.

It may be mentioned here that this was the 1st programme of IFIC Bank Academy in the year 2009.

Md Shah Alam Miah, Senior Research Officer of National Productivity Organization (NPO) coordinated the training course.

Bank Asia higher studies scholarship

As a part of corporate social responsibility, Bank Asia has given higher studies scholarships to four ~eritorio~s students of Ashulia in Savar Upazila, Dhaka on January 10 last.

SM Khorshed Alam, Deputy Managing Director of the bank, handed over the scholarship money to the students. Engineer Md. Anisur Rahman, General Manager of Palli Bidyut, Savar was present as special guest. A large number of people including students, teachers, journalists, businessmen and local elite attended the function.

It may be mentioned that Bank Asia gives scholarships for higher studies to the meritorious students in the rural areas, where the bank has branches. A total of 50 (fifty) students were selected for Bank Asia higher studies scholarships for the academic year 2008.

Meanwhile, 44 meritorious students in Tarail (Kishoreganj), Lohagara (Chittagong), Malkhanagar (Munshiganj) and Ruhitpur (Keraniganj) were awarded this scholarship.

Essential prices fall in Ctg, govt urged to intensify monitoring

Our Correspondent, Ctg

Major essential commodities including rice, paddy, edible oil, pulse, wheat and coarse flour have started registering a fall gradually in both wholesale and retail markets in urban and rural areas here thanks to tough stand by the government of Sheikh Hasina against unabashed profiteers and market manipulators.

Physiological pressures on market leaders and unscrupulous hoarders due to media campaign, repeated assurance by the government for taking effective steps for price normalization and raising public awareness against unjustified inconsistency in the prices of goods in wholesale and retail markets vis a vis international and domestic markets were the reasons behind such a positive impact on price situation, market sources said.

Apart from this, recent declining trend of prices of major importable consumer commodities in international markets and increased supply to the domestic market particularly the rice following bumper production of Aman paddy have also influenced the market.

Refined soybean oil witnessed a sharp fall in wholesale market as a 5- liters packed bottle of popular local brands were being sold at Taka 421 to Taka 430 from previous Taka 520 to Taka 530. The price of one liter bottled soybean oil was selling at less than Taka 18-22 from previous rate in last 4 days.

Wholesale market sources in the city's traditional trade hub Khatunganj said that per kilogram pump oil (non-containerized) was selling at Taka 45 while soybean is being sold at Taka 78 in wholesale market which is on an average 20 percent less than previous price before one month.

A leading importer in the area preferred not to be named hints that the price of soybean oil would decline further and may stand at Taka 60- 65 per liter within a short time. The domestic market of edible oil would ease further after reaching of a big chunk of import consignments scheduled to be arrived in February.

He said, edible oil market can be stable and there is less chance of market manipulation if the government allow to import the item under a fixed tariff provision like sugar instead of existing international market price basis.

Consumers in a number of city kitchen markets and rural areas alleged that they have not been enjoying the fruit of price fall in wholesale market as most of the shoppers were still selling the soybean and pump oil at previous price.

Market sources said currently per kilogram packed Atta (coarse flour) was selling at Taka 24 to Taka 26 from previous Taka 40 to Taka 42 (even a month back) at retail markets in the city.

Businessmen involved in wheat wholesale and import trade opined that the present price of Atta in retail market is still unjustified and it can easily be sold at Taka 16 to Taka 17 adjusting the milling cost as they are selling per kilogram wheat to the retailers and millers at Taka 13.50 to Taka 14.50 per kilogram.

" This is simply immoral and unrealistic. The government should monitor and intervene to correct the retail market price of Atta," a businessman said.

Abul Basher Chowdhury,a leading importer of food grains said that per metric tonne of Burmese coarse rice is being sold in international market at 295 US dollar, local import price of which is Taka 21 per kilogram. On the other hand, the price of lowest grade wheat in international market is 170 US dollar while highest grade is 290 US dollar.

They are now selling per kilogram lowest grade wheat in wholesale market at Taka 13.50 while highest grade at Taka 21.75.

" But the price of coarse flour in retail market is really unacceptable," he opined.

In urban areas, per kilogram coarse rice is being sold at Taka 25 to Taka 26 while medium quality rice is Taka ranging from 32 to 36 in kitchen markets. The rice price on an average is also declined by Taka 5 to Taka 7 per kilogram in recent days.

On the other hand, per kilogram of season's new coarse rice was selling at Taka 20 to Taka 22 in rural areas of the district.

" Increased supply to the retail market following bumper Aman production this season and hurried release of stocked rice by the hoarders and millers forecasting further fall of rice price on the face of the government's possible stern action against hoarding were the reason behind such steady decline of rice market," Haji Abdus Sobhan , a rice trader in Satkania upazila said.

A number of landless farmers and agriculture landowners in rural areas of the district said the rate of leasing paddy land for next Irri- Boro season has been declined by Taka 1500 to Taka 2000 per acres compared with last season due to sharp fall of rice and other agro- products.

" The price of rice of average quality can be brought down to Taka 20 per kilogram if government intensify field level monitoring effectively and stop illegal extortion from rice and paddy carrying trucks in highways," Saiful Alam Masud, managing director of S Alam Group , a leading importing firm and industrial conglomerates opined.

Price of pulse both in retail and wholesale market marked a slight fall in span of last one month as per kilogram Nepalese brand fine quality pulse is being sold at Taka 98.50 which was sold at Taka 105 in a month ago while Australia brand pulse was now sold at Taka 75 while it was sold at 82 in a month back.

" Currently the pulse market is in a declining trend in both local and domestic market. The overall declining trend of some major commodities was due to possible fear of government action, sudden disappear of Delivery Order (DO) traders who often manipulates the market and created artificial crisis," said Alhaj Ahmed Rashid Amu, general secretary of Chittagong Dhal Mill Trader Association.

M A Salam, senior vice president of Chittagong Chamber of Commerce and Industry (CCCI) said, the government should immediately sit with the stakeholders of trade and business on how to stable and normalize the prices of essentials to match with the international market.

The price differentiates between import level and retail level should not be over than 10 percent.

" We are ready to cooperate the government but government should find out an effective mechanism to monitor the market and to deal with any attempt of market manipulation," Salam added.

Unilever launches 'Agrojatra'

NATION BUSINESS REPORT

To ease complexity, Unilever Bangladesh has recently taken the initiative to implement fully computerised system to maintain VAT records amongst its distributors.

In the launch ceremony of project "Agrojatar" (fully computerised VAT recording system for distributors), those present were Rakesh Mohan, Chairman & MD of Unilever Bangladesh, Muhammad Abdul Mazid, Chairman, NBR as Chief guest, Members of NBR, Commissioners & other senior officials & distributors.

Manager, Indirect Taxes, Sayeed Ahmed Khan presented the salient features of the software. Equipped with adequate in-built security, this user friendly software can maintain all requisite purchase & sales related information easily. Through use of this software, smooth business operation, accurate records & transparency at all levels can be maintained. As a result, not only distributors will be benefited, it will also ensure Government revenue. The ultimate purpose of VAT system is to ensure the benefit for the tax payers, businessmen & the Government at large.

Till today only the distributors of Unilever Bangladesh have been paying VAT under actual value addition system. To encourage others, it is necessary to introduce easy & tax payer friendly VAT payment system under this method. In this regard, the distributors have made a request to the Chairman, NBR to remove the bottlenecks of this system at traders' level.

NBR Chairman in his speech has appreciated for implementing such a unique software which is transparent and user friendly. In response to distributors request he has mentioned that he will take necessary steps to make the VAT payment system more trader friendly.

In the launch ceremony, amongst those present were also Member (VAT), Abdul Mannan Patwari, Unilever's Finance Director Mahtabudddin Ahmed, Customer Development Director Mizanur Rashid, Supply Chain Director Imran Momin & Unilever's distributors.

IUB welcomes American Study-abroad students

NATION BUSINESS REPORT

Independent University, Bangladesh (IUB) hosted a dinner to welcome a team of American students as part of Bangladesh Study Abroad Program (BSAP) on January 9 last.

US Ambassador James Moriarty and his wife, Mrs Lauren Moriarty were also present to meet the students.

Catherine Hallock, of American Center was also present on the occasion.

Vice Chancellor of IUB Professor Bazlul Mobin Chowdhury, Chairman of IUB Founding Trust, Abdul Hafiz Choudhury, Vice Chairman Ambassador C M Murshed, Chairman of the Governing Council, Towhid Samad and Faculty participants Professor Mizanur R Miah, (Southern Illinois University Carbondale), Esther Jones Langston (University of Nevada Las Vegas), Deborah R. Jacobson, (Case Western Reserve University), Directors of the Schools of IUB, Heads of the Departments, all attended the programme.

A group of 24 students from across the United States representing 10 universities are in Bangladesh for a 13-day long study abroad programme which began on December 29, 2008 and ended on the January 10, 2009. Their main focus being Micro Finance in Bangladesh the students visited Project areas of BRAC, ASA and Grameen Bank. The Study Abroad Programme was organized by School of Social Work, Southern Illinois University Carbondale in cooperation with Case Western Reserve University and Independent University, Bangladesh.

BBCC delegation calls on FBCCI president

As a part of mediation to resolve crisis prevailing in Bangladeshi restaurants of Britain, a three-member delegation of Bangladesh Caterers Association BCA (UK) met FBCCI President Annisul Huq on Saturday.

Bajloor Rashid, president, BCA-UK and one of the directors of British Bangladesh Chamber of Commerce (BBCC) led the delegate of whom the other two were: M A Rouf (Justice of Peace), the regional President, BBCC and M A Mubin Khan, Co-coordinator, Bangladesh Chapter, BCA-UK. Shafquat Haider, Director FBCCI also took part in the meeting.

Bajloor Rashid talked to Annisul Huq who gave them assurance to take proper measure towards solving the crisis.

BCA (established in 1960) is the umbrella organization 01 approximately 12.000 British-Bangladeshi restaurateurs in the UK. It represents the Catering Industry run by the Bangladeshis, which employs more than 90,000 people, mostly Bangladeshi origin, with an estimated yearly turnover of £3.5 billion. Yet around 30,00C persons are required to resolve the staff crisis. That reveals a great opportunity for Bangladesh to export a large Lumber of manpower in Britain.

Microcredit Plus: The poorest of the poor have never been better

The poorest of the poor used to earn too little even to qualify for many of the ongoing microcredit programs.

'Financial Services for the Poorest (FSP)' project successfully helped these people move up from the bottom of the economic pyramid in the society.

83.4 percent of project beneficiaries earning less than a dollar a day before project intervention now earn more than a dollar a day.

The FSP project ended recently which was implemented by the Palli Karma Shahayak Foundation (PKSF) on behalf of the Government of Bangladesh with assistance from the World Bank.

The FSP project reached out to the hard core poor people who lived on less than a dollar-a-day and proved that they can wisely invest small amounts of funds to earn a return that allows them not only to pay back the loan but also reinvest the surplus for economic emancipation. The FSP Project was vital in helping the hardcore poor to get out of vicious cycle of poverty. More than 50 percent of the beneficiaries have now successfully graduated to the mainstream microcredit programs.

Many beneficiaries of the FSP program were used to be beggars, sex workers, widows, or household help who generally couldn't access the conventional micro credit programs. After becoming part of the FSP, some have even saved enough money to take land leases. The abject poverty did not preclude these extremely poor families from knowing the best business options for them. As they moved up during the project period-year 2002 through 2007-the cheerful, sparkling faces of these beneficiaries reinforced the fact about how a better living is possible with an engaged assistance in the form of tiny loans to Bangladesh's poorest people.

Following an innovative credit plus approach, raising awareness and social development were very much part of the project. FSP also offered flexibility in savings and repayment schedule. There was flexibility in the grace period and the program offered seasonal loan options. The credit was used for innovative Income Generating Activities (IGA) covering small business, goat and cow rearing, poultry, agriculture, handicraft, food processing, tailoring/embroidery etc.

FSP project was piloted in 19 upazilas (sub-districts) of 17 districts through its 19 Partner Organizations (POs). A World Bank project review team recently evaluated project impact by visiting the sites. The report indicates that the project was able to mobilize 64,000 members, generated Tk.54 million (US$0.9 million) in savings and lent out Tk.644 million (US$9.3 million) to 58,505 beneficiaries. Experiencing the success of the pilot program, the Government of Bangladesh replicated the project all over Bangladesh. As of May 2008, over 828,000 beneficiaries were mobilized under the replicated Ultra Poor Program (UPP).

The World Bank team highly appreciated the Government and implementing organizations for this innovative and successful show-case program which clearly shattered the myth that the poorest of the poor are not "bankable"- a simple but powerful demonstration with huge lessons across the world.

PKSF is now implementing another World Bank-supported microfinance project 'Additional Financing for Second Poverty Alleviation Microfinance Project (Microfinance II)' targeted for rickshaw pullers and poor owners, affected by ban on non-motorized vehicles in major roads of Dhaka city.