Tk 531cr pipeline project to start in January; main target to set up power plants

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Southwest to get gas
Tk 531cr pipeline project to start in January; main target to set up power plants

Staff Correspondent

The government is going to set up gas pipeline from Kushtia to Khulna to build power plants both in government and private sectors.

The Executive Committee of the National Economic Council (Ecnec) at a meeting with Prime Minister Sheikh Hasina in the chair yesterday approved a Tk 531 crore Southwest Region Gas Distribution Network Project to this end.

The gas will be supplied to industrial units. Some selected energy-starved areas will also get it for domestic uses.

A total of Tk 3606 crore was okayed at the meeting for 11 development projects including the Southwest Region Gas Distribution Network Project.

Of the Tk 531 crore project, Asian Development Bank (ADB) will provide Tk 280 crore as project aid.

A planning ministry official said the project will begin in January next year and end in June 2012.

According to project document Kushtia, Jhenidah, Jessore, Khulna and Bagerhat will come under this gas distribution network project.

Planning ministry official said it had a plan to set up several power plants through public-private partnership (PPP). The pipeline will be set up to provide gas connection to the plants.

However, the prime minister told the meeting to leave an option open for providing gas connection to other areas in this region.

UNB reports: Under another project titled ‘Supply Efficiency Improvement of Titas Gas Transmission and Distribution Company Limited’ under the energy and mineral resources division, involving Tk 56 crore, 7,000 prepaid meters will be installed by 2012.

Planning Division Secretary Mohammad Habibullah Majumder revealed the decisions to reporters after the meeting.

He informed that they are now in a good position for implementing the Annual Development Programme (ADP), which reportedly has made moderate progress.

The other approved schemes include: procurement project for four 108 TEU Self Propelled Multipurpose Container-carrier Ships under the Shipping Ministry involving Tk 138 crore, improvement of solid waste management in Dhaka city towards the low carbon society through enhancing waste transport capacity project under the Local Government Division with Tk 102 crore and converting Bangabandhu Sheikh Mujib Medical University into center of excellence (2nd phase) project under the Health and Family Planning Ministry with Tk 485 crore.

BB to launch separate SME department on Dec 31

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BB to launch separate SME department on Dec 31
Bangladesh Sangbad Sangstha . Dhaka

Bangladesh Bank will launch a separate department for the small and medium enterprises.

BB Governor Atiur Rahman will inaugurate the new wing at 10:30 in the morning on December 31 at the central bank headquarters in the city.

A BB official said the central bank had already given special attention to the SME sector and the new department would accelerate the growth of the small and medium scale industries across the country.

‘The department will monitor closely the activities of banks and financial institutions in SME financing,’ he said.

BRAC Bank to open exchange houses abroad

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BRAC Bank to open exchange houses abroad
Star Business Report

BRAC Bank, a fast growing bank, plans to open exchange houses in Malaysia, Singapore and Italy, aiming to attract more remittance through its own channel.

The board of directors of the bank at a meeting on Monday took the decision in principle to set up the exchange houses, subject to regulatory approval.

The bank will apply to concerned authorities soon for the green light, BRAC Bank Chairman Rumi Ali told The Daily Star yesterday.

With a strong marketing policy, the bank can bring more remittance in through its own channel from these countries, where a large number of Bangladeshis live, he said.

“Besides, if we have our own exchange houses, we can offer attractive exchange rates, as transfer costs will be lower,” he said.

The bank also decided in principle to set up an asset management company to manage funds, including mutual funds.

The asset management company, subject to regulatory approval, will be set up with participation from four institutions — BRAC Bank, BRAC, BRAC EPL Investments and BRAC EPL Brokerage.

BRAC Bank will hold a 25 percent share of the asset management company, while BRAC will hold 26 percent, BRAC EPL Investments 25 percent and BRAC EPL Brokerage 24 percent.

Developing dairy industry to tap its full potential

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Developing dairy industry to tap its full potential
Farid Ahmed

THE domestic dairy industry has developed to a notable extent. But this development is still far below the country’s potential. This is costing Bangladesh dearly. The cost and import of powdered milk is growing each year. The import was much lower even in the mid nineties. Growing import underlines the potential for a sizeable domestic dairy industry.

The expenditure on import of powdered milk increased several times over the years since 1996, when it was worth Tk 2.2 billion. Insufficient domestic production is fueling the increasing imports.

It is surprising that a country has not yet been able to demonstrate its effective initiative to produce at home something with high demand.

Meanwhile, the growing import speaks of the neglect to produce what the people needs for its nutrition. It is no less surprising that agrarian Bangladesh is yet to exploit fully natural advantage to develop an expanding dairy industry for self sufficiency.

Only planned efforts, which are missing, can develop Bangladesh’s dairy industry.

A domestic dairy industry can make powdered milk import unnecessary. It would save the expenditure on import and improve the balance of payments. Fresh milk consumption would improve nutrition for many. The dairy industry will create employment opportunities throughout Bangladesh. Increased availability will facilitate the growth of the leather industry. It will also help meat production to meet protein needs of the people. The horns and bones of the cattle could be used to make buttons, combs and similar other products. An extra spin-off would be the use of dung to produce bio-gas and manure.

Swedish hedge fund Moghul upbeat on B’desh economy

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Swedish hedge fund Moghul upbeat on B’desh economy
A Z M Anas

Bangladesh’s “less volatile” economic development will help it travel to a sustained path of growth, driven by a dynamic pool of private entrepreneurs, the head of Brummers and Partners said.

Patrik Brummer, chairman of Stockholm-based hedge fund, said the relative insulation from the world economy has guarded it against the global recession, while enabling its economy to roar ahead.

“Growth will increase. This economy can keep growing,” Mr. Brummer told the FE during his recent visit to Dhaka.

“I’m a strong believer in the prospect of Bangladesh. Lots of entrepreneurial spirits and successful enterprises are here,” he said.

His comments came as Bangladesh economy managed to grow a healthy 5.9 per cent in 2009 financial year, defying the worst economic downturn in generations.

Over the last 10 years, Bangladesh’s private sector-led economy has been chalking up growth of 6.0 per cent a year and, Mr. Brummer said, it has proved its economic resilience in the last eighteen months, too.

The financial markets crashed, jobs disappeared and growth took a sharp dive in much of the developed world and its ripple effects were felt in other parts of the world. The current crisis, originated in the US in September 2008 on sub-prime mortgage problem, reverberated on poorer nations, but Bangladesh was largely saved.

“This economy is creating jobs, which is more difficult in other parts of the world,” Mr. Brummer said.

In an interview with Bloomberg, Brummer’s top boss unveiled a plan to set up about US$100 million funds to snap up stocks in Bangladesh-not so large as nearly one-third of local companies are publicly traded.

The Dhaka Stock Exchange General Index, which gained 21 per cent this year, eclipsed its previous high reached in 1996 as shares of GrameenPhone Ltd, Bangladesh’s largest mobile-phone company, almost tripled on debut on November 16.

GP, majority controlled by Norway’s Telenor, raised Tk. 4.9 billion in what became the country’s biggest initial public offering.

Between 2007 and 2009, the stock market’s daily turnover surged by five times to about $100 million, an analyst said.

Mr. Brumnmer said his fund, which is managing more than $ 7.0 billion in assets, would invest equities in Bangladeshi private companies that require capital to expand.

“We’ll contribute to companies not only in terms of capital but also corporate governance. It’s a long partnership-may be five to eight years,” he said.

Private equity is still a virgin area in Bangladesh’s financial landscape and experts say it has the potential to grow 1.0 per cent of Gross Domestic Product (GDP).

He noted that there was a “tremendous” opportunity in Bangladesh for private equity firms to gain roots.

In July 2008, the manager set up a fund to invest in stocks and private equity and has already invested in Rahimafrooz Group’s battery and retail businesses.

It is also an investor in bracNet, a wireless broadband company, which has tied up with KDDI Corp, Japan’s second-largest mobile-phone operator.

Mr. Brummer said his Bangladesh unit is looking at “quite a few sectors in the country not most capital-intensive.”

Private sector is the driving force

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Private sector is the driving force
Mamun Rashid

Today in the developing world private sector is considered the driving force behind economic advancement. Private sector development is also relevant to the all-inclusive growth of a nation. With tremendous growth potential in various sectors of the economy, Bangladesh now is considered an “emerging economy”. Increasing participation of the private sector along with required support from the public sector in terms of maintaining economic stability and taking effective policy measures can lead us to the next trajectory of growth. In order to achieve the same, we need to focus on the following:

AGRICULTURE
The government has undertaken a number of policy reforms in terms of privatisation of trade in fertiliser, liberalisation of trade and foreign exchange regime, liberalisation of production, processing, distribution and import of seeds to ensure participation of the private sector. Proper disbursement of farm loan and appropriate price support can greatly help this sector.

APPAREL
The size of the global RMG export market is worth around $410 billion where Bangladesh’s market share is only 2 percent. Bangladesh is sustaining the challenges of global recession because it dominates the low-end apparel exports. In FY2008-09 apparel exports to Canada, Mexico, Australia and South Africa were worth $587 million, $82 million, $49 million and $42.5 million respectively. Within Asia, the country exported $23 million to Hong Kong, $14 million to Singapore and $9.5 million to China. Bangladesh is yet to derive benefits from Safta (South Asian Free Trade Area). Efforts to enhance our trade share should continue. Diversification of buyers should also remain a key priority.

PHARMACEUTICALS
More than 80 percent of the Active Pharmaceutical Ingredients (API) and almost the entire vaccine and injectable market are import driven. Between 2003-04 and 2008-09 pharmaceutical exports more than quadrupled from $10.1 million to $45.7 million. As more Western companies seek to minimise expenses in their manufacture of bulk drugs, while they focus more on high-cost patented drugs, Bangladesh can present itself as an attractive destination for off-shoring. Also, with the decline in reverse-engineering in India and China, Bangladesh is in a position to emerge as one of the regional research and development centres. Some are also venturing into newer horizons like biotechnological drugs. Bangladesh should take advantage of the flexibility for patenting medicines under the WTO agreements (LDCs exempted from compulsory licensing until 2016).

POWER
Only 43 percent of the population has access to electricity. There are investment opportunities in the independent/small power plants and nuclear power plants. Replacing the old government-owned power plants, off-shore gas exploration and production, regional energy integration through grid connection should also be explored. The government plans to implement power projects of around 7,000MW in the next five years worth $10 billion.

BANKING & FINANCIAL INSTITUTIONS
With Basel II implementation, the capital requirements of banks will go up considerably. Although market consolidation is expected, many banks will also issue corporate bonds. Private commercial banks should build up expertise in formulating new products in equity and debt capital markets, advisory services, wealth management, etc.

Insurance penetration is a mere 0.8 percent in Bangladesh, which is one of the lowest in the world. Islamic insurance is another area, which has scope for growth in our predominantly Muslim country.

TELECOM
Presently the operators generate more than 90 percent of their revenue from voice-based services but data-based services such as mobile internet is gaining ground. 3G licences have already been awarded implementation of which will require significant investment. Grameenphone has recently floated the largest IPO in the country’s history. Other operators are also contemplating enlisting.

HEALTHCARE
The demand for healthcare services is rising rapidly due to increasing purchasing power, declining mortality rate and increasing incidence of chronic and treatable diseases. Private high-end hospitals with international standards are also becoming popular. The movement of patients to other countries for treatment costs the healthcare industry an estimated $200 million each year. Therefore investment is needed in the areas of creating healthcare professionals, building specialised facilities, popularising telemedicine, etc.

EDUCATION
Private sector participation in education is being promoted to minimise pressure on public expenditure as well as to lessen dependence on foreign aid. This initiative encouraged the establishment of many schools, colleges, and especially private universities. Private University Act 1992 has resulted in the establishment of 51 private universities. There are still space available for private sector investment in secondary and higher secondary level, if not also primary education.

CHALLENGES & WAY FORWARD
The main challenges inhibiting private sector growth include a lack of accountability, weak corporate governance, ineffective human resource management, failure to attract young talent and negative brand equity. Our private sector to a great extent has failed to adopt itself with the changing needs of the times. Our entire economic system is still heavily dominated by the public sector and the ‘public sector mentality’. Private sector investment currently stands at only 19.2 percent of gross domestic product. Success stories around the globe have been possible only through the fruits of privatisation and private sector-led growth. Our existing private sector entities are still raising capital using outdated and inefficient methods.

Policy support from the government is of paramount importance. The government should strive to ensure economic, political and social stability. On the other hand, the private sector also needs to move forward from the ‘seeking all support from the government’ syndrome. More efforts should be given to corporate governance, financial transparency and appropriate assessment of income tax. Long-term strategic and visionary thinking is also needed. The public sector must also recognise their responsibilities as a corporate citizen for long-term balanced growth. If wealth cannot be created on a sustainable basis, the distribution economics will also not work efficiently.

The writer is a banker and economic analyst. This is the abridged version of a keynote paper presented at the Kennedy School of Government at Harvard University, USA, in October.

GP signs deal with Augere

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GP signs deal with Augere
Business Desk

Grameenphone Ltd has informed that it has signed an agreement with Augere Wireless Broadband Bangladesh Ltd on Sunday. As per the agreement, Augere will share GP’s telecom infrastructure in expanding its network and provide wireless broadband internet services throughout the country.

DITF set for kick-off on January 1

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DITF set for kick-off on January 1
Humayun Kabir Bhuiyan

The preparatory works are all but over for successful holding of the 15th Dhaka International Trade Fair scheduled to begin on January 1, organisers said.

The prime minister, Sheikh Hasina, will inaugurate the month-long fair to be held at a ground adjacent to Bangabandhu International Conference Centre in the city’s Sher-e-Bangla Nagar area.

In January every year, Export Promotion Bureau and ministry of commerce jointly organise the fair which is participated by a wide range of trade and industrial companies from home and abroad.

In the fair, exhibitors would showcase Bangladesh’s export products to visitors from home and abroad. The wide range of products that are going to be displayed in the fair include woven wears and knitwear, jute, leather and agro products, frozen foods, light engineering products, handicrafts, ceramic ware, pharmaceutical and chemical products, machinery, furniture, building materials.

‘All the preparatory works are nearly complete. Different organisations are now working on the ground. There should not be any problem,’ Sayed Belal Hossain, member secretary of the fair and deputy director of EPB, told New Age on Sunday.

‘At present organisations like public works division and Dhaka Electric Supply Authority are working at the venue,’ said Shahab Ullah, vice-chairman of EPB.

EPB officials said that the response from both local and overseas entrepreneurs is better this year than the previous year.

They hoped that the number of visitors to the fair would also be higher this year.

‘Two thirds of the applicants have not got room in the fair. Unfortunately, we can not accommodate all in the limited space,’ said Shahab Ullah.

On the accommodation problem, he said that works are on for the construction of a permanent trade fair complex near the old airport and the works may take 2-3 years to be completed.

Shahab said that the permanent trade fair complex could be used by other trade bodies in addition to holding Dhaka International Trade Fair.

Belal said that selection of applicants was completed on November 1, but people are still lobbying with us for a space in the fair.

There were quite a few empty stalls in the last year’s fair, according to EPB officials.

Belal said that the DITF-2010 would have five premier pavilions, four premier mini pavilions, 35 premier stalls, 61 pavilions, 40 mini pavilions and 303 stalls. All of these have already been allotted to the applicants.

The participating foreign countries are Pakistan, India, China, Iran, South Korea, Thailand, Hong Kong, Malaysia, USA, and Turkey.

Some 28 pavilions, mini pavilions and stalls were allocated for the foreign participants, of which Pakistan got 14, India 3, South Korea, Thailand and USA two each, while China, Iran, Hong Kong, Malaysia and Turkey one each.

Belal informed that a sub-committee, headed by Federation of Bangladesh Chambers of Commerce and Industry president Annisul Huq, allotted the pavilions, mini pavilions and stalls through lottery.

NBR revenue grows 14pc

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NBR revenue grows 14pc
Sayeda Akter

The National Board of Revenue (NBR) has recorded 14 percent growth in revenue in the July-November period of the current fiscal year compared to the same period last year, thanks to an improved taxation.

During the five-month period, the board has achieved 24 percent growth in income tax collection, while the growth rates in value added tax (VAT) and customs duty were 20 percent and 5 percent respectively.

The total revenue in the period stood at around Tk 21,309 crore, of which around Tk 4,272 crore came from income tax, Tk 7,649 crore from VAT and Tk 8,816 crore from customs duty, according to NBR.

However the customs department has posted a minimal growth mainly because of the global financial meltdown and a decline in import.

The government in the current fiscal year has set a target of collecting higher revenue than the previous year — 38 percent growth in revenue from import, 33 percent in VAT and 27 percent growth in income tax.

“We are trying to improve our tax collection system by introducing simpler methods and technology, which also helped collect more revenue in the July-November period. If we can streamline the entire taxation system, it will increase revenue collection further,” said NBR Chairman Dr Nasiruddin Ahmed.

“At the same time, we are trying to enhance the board’s strength, and bring more transparency and accountability, which we hope will help boost revenue collection,” he added.

Ahmed said the number of taxpayers has increased to around 7.53 lakh until November from 6.56 lakh last year. However the number of the taxpayer identification number (TIN) holders is around 2.4 million now.

The NBR chief said a move is under way to set up ‘dedicated benches’ in the Supreme Court to handle NBR-related cases and promptly collect the revenues in due.

“Revenue will increase further after setting up two dedicated benches for resolving tax-related cases involving settlement of Tk 8,000 crore revenue,” he said.

He also said the government plans to introduce Alternative Dispute Resolution for out-of-court settlement of cases.

The NBR started a tax survey from August to net 4 lakh more taxpayers within the current fiscal year.

The tax administrator is working to introduce an online tax payment system by next month to upgrade the existing tax returns submission procedure. In this process, the taxpayers will be able to pay tax online from January.

Ahmed said the board now works to rationalise the tariff structure and remove anomalies in the taxation to encourage more taxpayers to submit VAT, customs duties and income taxes.

The NBR chief said they will set up a national data centre to provide adequate information to help taxpayers avoid hassles.

sayeda@thedailystar.net

Private sector to make mark in inland cargo handling

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Private sector to make mark in inland cargo handling
Say transport analysts at seminar
Star Business Report

Inland water transportation shadowed by other modes of transportation for years is now likely to emerge as an important mode of inland cargo movement, with the private sector strengthening its presence in waterways infrastructure.

Speakers at a seminar said yesterday inland water transportation has the potential of playing a major role in container transport between Dhaka and Chittagong and between Bangladesh and India.

They said this mode of transportation is at least 40 percent more cost-effective than other modes. It is also environment-friendly, they said.

Shipwrights Bangladesh Ltd, a consulting and design engineering firm engaged in developing inland container terminals, shipyards and container vessels, organised the seminar on the business opportunities through inland water transportation at Dhaka Sheraton Hotel.

Shipwrights is also designing and building the country’s first 100 percent privately owned and operated inland river container terminal with a capacity to handle about 3,90,000 TEU containers by 2015, with full customs clearance facilities. Rupayan Group has taken up the project at an estimated cost of $40 million.

Mahboob Ahmed, managing director of Shipwrights Bangladesh, presented a keynote paper at the seminar addressed by shipping businesses, government officials, exporters and importers.

“The Dhaka-Chittagong road corridor will not be able to cope with the increased level of traffic and will be prone to consistent transport gridlocks in the days ahead,” said Ahmed.

Container movement by road, which is costly compared to rail and waterways, has been growing fast in the absence of waterways transportation, Ahmed said.

The Dhaka-Chittagong economic corridor contains about 32 percent of Bangladesh’s population and generates nearly half of gross domestic product. About 85 percent of international trade worth nearly $35 billion took place through Chittagong Port in fiscal 2008-09 and handled around 1.15 million TEUs a year. But most freight traffic moves on a congested two-lane highway.

“Bangladesh’s GDP can grow by more than 1 percent and foreign trade by 20 percent if the inland water transport logistics are made efficient and competitive,” Ahmed said, quoting an Asian Development Bank report.

Reazuddin Ahmed, chairman of Chittagong Port Authority, said container handling by the port would increase significantly in future.

“Road and rail connectivity have been playing a vital role, but inland waterways are yet to pick pace.”

Ahmed said the government has been developing an inland water terminal at Pangaon in Narayanganj, but it will not be able to cope with rising demand.

“It is high time the private sector invested in the inland water transportation system,” he said.

MA Baset, vice president of Bangladesh Knitwear Manufacturers and Exporters Association, said Rupayan Group’s move to build an inland river container terminal would surely be viable.

Once the terminal begins operations in 2011, exporters will be able to transport goods directly to feeder vessels in Chittagong and Mongla ports. Customs clearance will be made available at the river terminal, according to the operator.

Bangladesh has one of the largest inland waterway networks in the world with around 700 natural rivers crisscrossing the country. These rivers connect almost all major cities, towns and commercial centres in the country. But a lack of maintenance shrunk the 12,000 kilometres classified waterways in 1970 to now less than 6,000 kilometres.

Bangladesh must sign up for world’s easy customs system

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Bangladesh must sign up for world’s easy customs system
ICCB chief stresses at workshop
Star Business Desk

Trade analysts yesterday underscored immediate implementation of the ATA Carnet System to help Bangladeshi businessmen compete on an equal footing with rivals.

The ATA Carnet simplifies the custom formalities by allowing a single document to be used for clearing goods through customs in the countries that are part of the system.

The need for the system is felt as the world experiences expansion of trade that has led to considerable growth of temporary exports and imports of goods.

“Industrialists and traders need to display their products at trade fairs and exhibitions, as these can offer them a valuable means for marketing their products abroad,” said Mahbubur Rahman, president of International Chamber of Commerce Bangladesh (ICCB), at a workshop on ATA Carnet System in Dhaka.

Bangladesh is a member of the World Customs Organisation (WCO), the intergovernmental organisation of customs administrators for the running of the recent and comprehensive international customs convention governing temporary admission of goods under ‘ATA Carnet’, namely the ‘Istanbul Convention’.

“But Bangladeshi businessmen and its foreign partners cannot take advantage of the benefits and facilities offered by ATA Carnet, as the country is not yet a contracting party to Istanbul Convention,” he said.

The ATA Convention that was put in place 45 years ago has become the most important customs document for the temporary duty-free admission of goods.

The ATA Carnet procedure has weathered many implementation problems and proved capable of adapting to a variety of new international transactions, he added.

Introduction of the system in Bangladesh will have a positive impact on foreign trade by ensuring local exporting firms are able to compete with other trading nations on the world market and facilitate integration into the global economy, Rahman said.

The ATA Carnet is used in 66 countries, including India, Pakistan and Sri Lanka. A number of countries in Asia and Latin America are fairly advanced in the preparatory work involved in the accession to the system.

Abu Alam Chowdhury, vice president of Federation of Bangladesh Chambers of Commerce and Industry, R Maksud Khan, chairman of ICCB standing committee on customs regulations, reforms and modernisation, Ju-Song Lee, ICC WCF Carnet adviser, were also present at the two-day workshop.

Khan observed that adoption of the ATA Carnet by Bangladesh is of utmost importance to attract investment and further enhance exports.

Participants from the National Board of Revenue, commerce ministry, Export Promotion Bureau, Bangladesh Bank, trade bodies, commercial banks, associations and national companies were present.

Int’l engineering industry show begins Jan 7

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Int’l engineering industry show begins Jan 7
FE Report

A four-day international trade show for the engineering industry will start from January 7 at the Bangabandhu International Conference Centre (BICC) in the city.

Some 25 international engineering goods manufacturers, mainly from India and China, will showcase their latest products in the fair. Bangladeshi manufacturers will also display their goods in it.

ASK Trade and Exhibitions Ltd, in association with Zakaria Trade and Fair International, is organising the fair.

“We are organising the fair in the city, as it will help sourcing various equipment for construction, engineering, and energy and power sectors,” Nanda Gopal, chief executive officer of ASK Trade, said.

He also said the trade show will display latest and advanced industrial equipment.

Light engineering sector has good contribution to the country’s economy, especially in earning foreign exchanges, and owners of light engineering plants will showcase their products in the fair, sources at the Bangladesh Engineering Industry Owners Association said.

They said manufacturers of different industries like – jute, cotton, sugar, paper, textile, garment, fertiliser, tea plantation, ferry, railway, power, construction, transport, and pharmaceuticals are likely to participate in the fair.

Intercropping with sugarcane gains popularity in N-region

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Intercropping with sugarcane gains popularity in N-region
By Dr Aynal Haque

RAJSHAHI, Dec 21 (BSS) – Intercropping of various cash crops with sugarcane has been gaining popularity everywhere in the country’s northwestern region during the winter season for the last couple of years.

Sugarcane intercropping is being adjudged as helpful for boosting total crop production per unit area and time along with ensuring sustainable sugarcane cultivation with higher economic benefit compared to other crops in the country’s northwestern region.

Principal Scientific Officer of Bangladesh Sugarcane Research Institute (BSRI) Dr Samajit Kumar Pal told BSS that intercropping can not only increase total crop production but also help improve soil health and fertility with little or no negative effect on sugarcane yield and quality.

He said the country’s northwestern region is all along famous for sugarcane farming and production. So, he said, 10 out of total 16 sugar mills in the country were established in the region.

Systematic intercropping of potato, onion, garlic and some other winter crops, vegetables and spice even helps increase sugarcane yield compared to single-cropping.

“We have developed more than thirty production packages of different winter crops suitable as intercrop with sugarcane but the technologies could not be expanded to the farmers’ field due to lack of proper initiative,” Dr Khalil lamented.

Sugarcane is a cash-cum-industrial crop of Bangladesh. But the national average yield is far below than potential yield.

Although a good number of high yielding modern varieties and production technologies have been developed at the BSRI but these modern varieties and production technologies failed to increase national average yield to a satisfactory level.

Due to high demand of cereals and vegetable, sugarcane is being gradually pushed into low-lying marginal lands.

To solve the problems, BSRI developed a series of high yielding varieties of sugarcane and production technologies especially intercropping packages for sustainable production under particular agro-ecological and socio-economic conditions of resource poor farmers.

Multiple cropping, in general, refers to planting two or more crops in the same field in a year. It involves intensive crop cultivation in terms of effective use of space and time.

It plays an important role in promoting the development of agriculture in many countries of the world especially in densely populated developing countries with scare land reserves.

A chain of experiments and trials were conducted in different farming fields in the region for the last couple of years exploring good results in terms of economic benefit and soil health.

Intercropping or mixed cropping makes better use of sunlight and water in addition to showing some beneficial effects on pest and diseases.

In many cases, it gives higher total production, monetary returns and greater resource use efficiently and increases land productivity by almost 60 per cent.

It often gives higher cash return and increases total production per unit area and time than mono-cropping.

Intercropping also increases nutritional quality of diet for the farm family allowing better control of weeds and increasing land equivalent ratio as much as 78 percent and reduces soil erosion.

In an intercrop community, the individual plant of one crop exposed to both interplant and inter-specific competition although causing a reduction in individual yield, total productivity per unit area increases.

Strengthening intercropping programme following appropriate production packages might help obtain a considerable amount of pulses, vegetables, oil seeds, spices and other crops suitable as intercrop with sugarcane.

BSRI Principal Scientific Officer Dr Khalilur Rahman told BSS that the existing sugarcane cultivation would not be economically viable without intercropping. So, the method must be mandatory for the sugarcane farmers.

This will certainly reduce the demand for extra land to produce the above mentioned crops as well as save foreign currency.

Furthermore, intercropping will create additional job opportunity needed for intensive crop production.

Mixed cultivation of pulse with sugarcane was practiced at the farmers’ level demonstration fields to explore potentialities of intercropping pulses and leguminous crops with sugarcane and developed some packages for adoption at farmers’ field and the total adjusted yield from sugarcane and intercrops were found comparatively higher than that of sole sugarcane.

Similarly, a good number of trials have been conducted on intercropping vegetables like potato, cabbage, cauliflower, broccoli, carrot, tomato, spinach with sugarcane in the region were found very suitable intercrops with sugarcane especially in paired row system.

The field level findings indicated that intercropping vegetables were found very remunerative with sugarcane than sole cropping.

No adverse effect of intercropping vegetables on sugarcane yield was found even in some cases sugarcane yield was found higher than intercropped condition in single row but it was almost identical in paired row system. Yields of intercrops were higher in paired row.

It was counted that large scale intercropping different vegetables with sugarcane in paired row could be played a vital role in increasing national production of those crops without involving any additional land.

Onion, garlic, coriander and chilies and some uncommon spice crops like black cumin, methi, mouri are found very suitable and compatible with sugarcane as intercrop.

Some of research finding showed that a significant amount of different winter crops production was increased by using the methodical intercropping with sugarcane in a recent decade.

Intercropping potato, onion, garlic, lentil, chickpea, mustard, cabbage, cauliflower, mug-bean was done successfully.

Dr Khalil said a number of management and farmers’ resource related problems are persisting in implementation of intercropping with sugarcane in the country which needed to be solved as early as possible for wide-ranging and speedy dissemination of research-based outcomes to the farmers doorsteps.

Besides, the intercropping with sugarcane should become widely popular among the sugarcane farm families, which will ensure positive impact on food securities to farmers as well as the nation, he added.

TSS to produce mobile set

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TSS to produce mobile set
Bangladesh Sangbad Sangstha . Dhaka

The government has taken an initiative to produce mobile phone sets in the country in view of the phenomenal rise in the number of mobile phone users which may hit 80 million in next two years.

Telephone Shilpa Sangstha under the post and telecommunications ministry has taken the move, ministry secretary Sunil Kanti Bose told the news agency on Sunday.

He said the initiative has mainly come from post and telecommunications minister Raziuddin Ahmed, who wanted to rejuvenate the TSS.

Sunil said the TSS has not produced anything since last 12 years despite having 525 people on the pay roll. The last caretaker government reduced the manpower to 260 and let go of unnecessary people.

He said the TSS is now producing land phone sets, besides having set up 200 network towers for TeleTalk mobile under the public sector. He said the government wants to further expand its activities and has taken up producing digital meters, mobile charger, laptop and such other gears.

The minister told the agency that he had taken steps to use TSS and other agencies under the ministry to developing digital gears and appliances to create a new digital Bangladesh.

The ministry has taken short, medium and long-term projects accordingly, he said mentioning the plan to produce mobile phones, laptops and other telecommunication gears.

TSS secretary Osman Ghani Sheikh said these mobile sets would be produced using local technology. TSS is initially planning to produce four lakh mobile sets annually. Such mobile sets may sell at Tk 2000 in the market. These will also allow the use of double sim and other communication gears.

The post and telecommunication minister said TSS has been asked to produce laptops for students which they may buy at Tk 10 to 12 thousand.

Sunil said the government wants to enter into joint venture with foreign firms to produce mobile phones locally and international tenders have already been invited to this effect.

He said multinational companies like Goldcom China, ZT, Erickson and China Electric Co have so far showed interest to enter into joint venture following the government tender.

Potential for developing Bangladesh’s pharmaceutical sector

http://www.thefinancialexpress-bd.com/more.php?news_id=87308

Potential for developing Bangladesh’s pharmaceutical sector
Ferdous Alam

The export value of pharmaceuticals, though small, is growing at 50 per cent per year. Exports increased from $8.2 million in 2004 to $28.3 million in 2007 and expanded further in last two of years. The export destinations have now risen from 37, to 72 countries during the period.

The inception in the 1950s was small, with a handful local and multinational companies producing medicines in the then East Pakistan. By 1982, many top ranking multinationals established their manufacturing facilities in Bangladesh.

Bangladesh’s pharmaceutical industry has potential to grow and compete in the international market. Its ability to comply otherwise with the guidelines of quality assurance provides it the competitive advantage. Most companies follow the good manufacturing practice (GMP) standards, set by the UN World Health Organisation (WHO).

Bangladesh can compete with countries like India, China, Brazil and Turkey in the international export market due to its quality compliance. If enjoys the exemption limit until 2016 under the provisions of the World Trade Organisation with regard to generic, patients and other related matters. The ability of the Bangladesh industry is otherwise undisputed about achieving excellence.

A good number of Bangladeshi companies have won accreditation for export from the regulatory authorities in some developed countries. The accreditation will allow them to enter the export market with their competitive prices and standards. They are now international players. Bangladesh drug policy requires all its pharmaceutical manufacturers to strictly comply with the standards.

The Current Good Manufacturing Practice (cGMP) is recognised worldwide for its holistic approach to ensure the quality of food and pharmaceutical products. With its pharmaceutical export basket growing fast, Bangladesh now exports a wide range of major therapeutic capsules, syrups and tablets.

The country exports high-tech specialised products like HFA, inhalers, suppositories, hormones, steroids, oncology, immunosuppressant products, nasal sprays, injectibles and IV infusions. The local pull of demand for medicines set the industry in a second footing.

The industry produces quality medicines for millions of people in Bangladesh. Almost self-reliant in pharmaceutical products, the industry meets 97 per cent of national demand for medicines.

Epidemics like malaria, dengue, cholera and typhoid, no more kill as many people in Bangladesh as they once did. Affordability and availability of medicines contributed to the achievement.

Bangladesh tops South Asia with its average life expectancy of 61 years though per capita consumption of medicines is one of the lowest in the region. Over 50 new factories came up in last three years, of which about two dozens took to aggressive marketing. Out of 230 companies, 200, including five multinationals, have their manufacturing facilities.

At least 21 companies produce 41 active pharmaceutical ingredients (API). To feed the local industry, more API industries are needed. The recent approval, as was reported in a section of the media, to a 30 billion dollar API industrial park in Munshiganj [Note: The author probably intended to say 20-30 Billion in Taka, not Dollars. See here]will inject fresh momentum to the pharmaceutical industry. Bangladesh can save at least 70 per cent of expenditure on raw materials when the API part goes into production.

Bangladesh imports 80 per cent of its pharmaceutical raw materials. A good number of skilled professionals from home and abroad are expected to join the industry to enrich its human resources pool.

The country can continue to produce patented products until 2016 as per trade related intellectual property rights (TRIPS). The industry is legally permitted to reverse engineer, manufacture and sell generic versions of on-patent pharmaceutical products for domestic consumption as well as for export to other LDCs. It created a big opportunity to make Bangladesh a new chemical entity. Bangladesh can share its long years of experience in pharmaceutical formulation and marketing with the Least Developed Countries (LDCs) and developing ones, who need it. Opportunities have been created in Bangladesh for bioequivalence study, validation report, clinical trials and manufacturing plant audit mechanism.

For bio equivalency tests alone in Singapore, Malaysia or in European countries Bangladesh pharmaceutical industry has to spend a lot of money now. These sub-sectors would need more investment in future. The industry created opportunities for foreign direct investment.

Over $250 million invested in the sector, has helped modernise and create new facilities.

Full cGMP compliant facilities have been developed to meet the regulatory requirement of any country in the world.

The investment has helped the companies get certification from the international regulatory bodies. Bangladeshi companies are now in a position to export pharmaceutical products to any part of the globe.