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The retail prices of rice went up as high as 23 per cent in the last six months as millers were allegedly taking advantage of almost no import of the coarse varieties that majority people consume. Importers said they were not importing the coarse varieties of rice due to 25 per cent duty that has made imports costlier than local rice. The price hike of different varieties of rice ranged between 6 to 23 per cent during the period, according to official figures, showing higher rate of hike for the mostly consumed varieties and lower rate of increase for the less consumed varieties. Market observers, however, said that the import restriction should have little impact on the price hike as imports meet very insignificant percentage of the country's demand, which is also much lower than local production. The country produced 34.57 million tonnes of rice against a 31.0 million tonnes of demand in FY'16, according to Bangladesh Bureau of Statistics and Directorate General of Food (DGoF).    But the prices went up even in the peak harvesting season, said the observers. Consumers Association of Bangladesh (CAB) Secretary Humayun Kabir Bhuiyan said millers were pocketing hefty profits, depriving both the farmers and consumers. He said the millers' cost for Jeerashail or Miniket, Boro season variety, was maximum Tk 33-Tk 34 a kg as paddy price was highest Tk 750 a maund. "But they are selling the variety at Tk 44-Tk 54 a kg," he added. Md Sarwar Alam Kajol, a Naogaon based importer, said the import of daily edible rice remained almost halted, following the imposition of the duty. He said the import cost of Indian Swarna now stands at Tk 36-Tk 37 a kg as compared to Tk 32-Tk 33 a kg at the local mills. The import declined sharply to only 41,000 tonnes worth around US $ 20 million in the first seven months of the current fiscal year (FY'17), which was much lower than 0.19 million tonnes worth $ 61 million in the corresponding period of last FY, according to the Food Ministry data. The period's import was lowest in last four financial years. The period's decade low was recorded at 0.04 million tonnes in FY'13. Market observers viewed that the imposition of the duties might have discouraged the private imports this fiscal year, apparently affecting the supply side to some extent if not much. Under this situation, many millers are believed to have taken the advantage of seeking higher prices although the farmers were also getting some dividends. Rice were now selling at Tk 32 (coarse) per kg to Tk 48 (finer) at village level as against Tk 26 to Tk 44 in 2015-16, according to the Department of Agricultural Marketing (DAM). However, Trading Corporation of Bangladesh (TCB) said rice prices increased by Tk 4 - Tk 6 a kg in Dhaka in the last six months. The prices of finer varieties like Miniket, Jeerashail, Najirshail increased by Tk 4 a kg; medium quality Brridhan-28, Lata and coarse variety of Swarna by Tk 6 a kg in the country, according to the TCB and DAM. The TCB data also revealed the prices increased even in peak Aman harvesting season (November-January, FY'17). However, having a zero duty facility, the private sector had imported a huge quantity of rice during the period from FY'14 to FY'16. Rice import hit an all time-high of 1.49 million tonnes worth $ 350 million in FY'15. "The outcome was a price debacle during the harvesting seasons as local production was also an all-time high of 34.7 million tones," additional secretary to the Ministry of Agriculture Md Mosharaf Hossain said. He said the low prices of paddy persisted during all the harvesting seasons from 2014 and 2016 (Boro season). "And the consequence was that many of the farmers shifted to other crops which caused decline in production of rice to 34.57 million tonnes in FY'16," he said. "Boro cropping area reduced by above 0.12 million hectares in the last FY," he added. He said higher import duty should be continued to help farmers getting fare prices, which is necessary to keep them in rice cultivation.   Asked, President of Bangladesh Auto Major Husking Mills Association Md Abdur Rashid said traders can store paddy or rice for maximum 60 days. "We are buying finer paddy from the local market now at Tk 1050-Tk 1150 a maund," he said.   However, to help farmers and to maintain higher production, the government removed zero duty facility on rice import from middle of FY'16, which was increased to 25 per cent from FY'17. Paddy was selling at Tk 760-Tk 820 (coarse variety) and Tk 800 -Tk 950 (aromatic) a maund  (40 kg) during the Aman harvest season that ended last month, said DAM assistant director T M Rashed Khan. He said the paddy price was only Tk 450 to Tk 750 a maund in last seven harvesting seasons from 2014 to 2016 against a production cost of Tk 740 to Tk 800. Executive director of the local think tank Center for Policy Dialogue (CPD) Dr Fahmida Khatun said that a dilemma always persisted over initiating the rice import policy as the policy makers take into account fair price for farmers in one hand and interest of consumers on the other. "The import policy should have checks and balances. Import restriction could be lessened for a period of time to reduce the consumers' woes," she added. But the price trend of rice and the rate of inflation of last few years should also be taken into consideration to see whether real price of the staple increased or not, said Dr Fahmida. "The national statistical agencies will have to provide authentic data on local demand and supply on quick and regular basis," she added.       tonmoy.wardad@gmail.com....

Published at: 2017-02-28 00:00:04

A fire broke out in a particleboard factory at Madanpur in Bandar upazila on Monday night, reports UNB. Mamunur Rashid, deputy assistant director of Narayanganj fire service, said the fire broke out at the 'Particleboard Factory' of 'Partex Group Limited' from an electric short circuit at its chemical section. On information, seven fire-fighting units rushed in and doused the fire after two hours. Five people were injured while putting out the fire, Rashid said.....

Published at: 2017-02-28 00:00:04

Entrepreneurs of oil-fired power plants now seek exemption from pre-storage of imported oils before consumption. Officials said the owners of these private-sector plants want facility for loading fuels to lighter vessels from mother vessels and carry those direct to power-plant sites instead of prior storage in tanks. But, said a senior official of Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources (MPEMR), the state-run Bangladesh Petroleum Corporation (BPC) smelt a rat behind the move. There might be pilferage of the fuels and the owners of privately owned power plants might sell a significant quantity of the petroleum fuels on the open market, a senior BPC official said. Under the existing provision, the private power-plant owners have to store fuels in storage tanks where personnel from national exchequer have access to monitor the quantity and quality of imported petroleum products, said the BPC official. "If the private sector is allowed to carry the fuel imported by them directly to power plants, the existing monitoring system, which is already weak, might get weakened further," he apprehended. Officials said the country currently has around 50 oil-fired power plants, mostly owned by private-sector entrepreneurs. Many private-sector power-plant owners bagged power plant contracts through negotiation with government high-ups bypassing tender procedure. Allegations are rife that the private importers of petroleum products are violating government directives over import procedures and continuing brisk business for a lack of transparency. The private sponsors of power plants are currently importing furnace oil to the tune of around 1.5 million tonnes per year independently from the international market to run their power plants. But they are not providing necessary information to any state agencies during the import, which is a violation of the government directives, the BPC official alleged, preferring anonymity. As per the directives, the private-sector importers were supposed to inform BPC about each of their import consignments, he pointed out. Besides, under the BPC Ordinance the corporation has the authority over overall management of the country's petroleum sector. But the private importers are informing only Bangladesh Power Development Board (BPDB) when they need to get money back from the latter against their fuel imports, said sources. BPC officials said if the private sector continued importing furnace oil in breach of the government directives, there could be a mismatch in the supply chain inside the country. The private sector could manipulate the quantity of furnace-oil imports as well as the prices in absence of monitoring, they added. Having been permitted to import furnace oil, the private sector attained waiver of duties against imports of furnace oil. They are also getting 9.0 per cent service charge along with the fuel- import costs from the BPDB. BPC has already 'squeezed' the import of furnace oil since 2016 to make room for business by private importers following instructions from the ministry. Trading in furnace oil was one of BPC's major profit-making ventures. BPC is now responsible only to supply furnace oil to state-run power plants owned by the BPDB, which it arranges from the output of the country's sole refinery-Eastern Refinery Ltd (ERL) in Chittagong. The government-fixed rate for furnace oil is Tk 42 per litre, at which BPC sells the fuel to consumers. But private sector can import furnace oil at rates as low as Tk 25 per litre by taking advantage of the lower oil prices on international market. It makes room for private sector to sell furnace oil on the open market and bag hefty profits, said sources. When contacted, the owner of a private-sector power plant claimed that the fuel-import costs could be cut once they got immunity from the prior- storage provision before consumption of oils. But a senior BPDB official alleged that the plant sponsors did not reduce tariffs before although their import costs were reduced through waiver of import duties and providing 9.0 per cent service charge. Tariff cut during tenure extension of oil-fired power plants, including the much-talked-about rental and quick-rental ones, was very 'nominal,' said the official. Contacted, Prof M Tamim of Bangladesh University of Engineering and Technology (BUET) stressed proper monitoring on the import of fuels by private sector.     Mazizur.rahman@outlook.com....

Published at: 2017-02-28 00:00:04

A half-day hartal, enforced by Communist Party of Bangladesh (CPB) and Bangladesher Samajtantrik Dal (BSD) protesting gas price hike, is underway today in the capital, reports UNB. The hartal supporters brought out a procession at Shahbagh intersection in the morning in support of their shutdown programme and then they took position there. Though some educational intuitions are closed, traffic across the city is normal. However, SSC examination centres and vehicles carrying examinees are out of the purview of the shutdown. Earlier on Friday, CPB and BSD called the hartal in the capital from 6:00am to 12:00noon protesting the gas price hike. On Thursday, Bangladesh Energy Regulatory Commission (BERC) raised the gas prices for all consumers which will come into effect in two phases.....

Published at: 2017-02-28 00:00:04

A freedom fighter was beaten to death at Ghona Bazar in Satkhira Sadar upazila early Tuesday. The victim has been identified as Abul Kalam Azad, 65, a resident of Ghona village and owner of a rod-cement shop, reports UNB. Firoz Hossain, officer-in-charge of Sadar Police Station, said one Mominul bought rod and cement from Kalam's shop a few days back and did not pay the bill. Mominul locked into an altercation when Kalam went to collect the money from him around 9:00pm on Monday. At one stage, Mominul aided by some other people beat Kalam mercilessly, leaving him critically injured. He was taken to Sadar Hospital where he succumbed to his injuries around 2:30am. Victim's son Akhtarul Islam then filed a murder case against seven people. Later, police arrested four, including Mominul.....

Published at: 2017-02-28 00:00:04