Bangladesh moves up in trade logistics efficiency

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Bangladesh moves up in trade logistics efficiency
Country ranks 79th in a World Bank survey of 155
Star Business Report

Bangladesh has emerged as an overperforming country in proving efficiency of trading goods around the world, according to a new World Bank survey.

Bangladesh ranked 79th in the global Logistics Performance Indicators (LPI) study released on Friday. It was in the 87th position in the 2007 survey.

The LPI is an “interactive benchmarking tool” created to help countries identify the challenges and opportunities in their performance in trade logistics, the WB says.

The LPI 2010 allows for comparisons across 155 countries. It is based on a worldwide survey of operators on the ground (global freight forwarders and express carriers), providing feedback on the logistics ‘friendliness’ of the countries in which they operate and those with which they trade.

The report says Bangladesh has made a significant improvement in customs, infrastructure, and lead-time. In terms of logistic quality and competence, however, Bangladesh was in the 96th position.

“Economic competitiveness is relentlessly driving countries to strengthen performance, and improving trade logistics is a smart way to deliver more efficiencies, lower costs and added economic growth,” said World Bank Group President Robert Zoellick.

Nine other most significant overperformers are: China, Democratic Republic of Congo, India, Madagascar, the Philippines, South Africa, Thailand, Uganda, and Vietnam.

Germany is the top performer among the 155 economies followed by Singapore, Sweden and the Netherlands.

According to the LPI, high income economies dominate the top logistics rankings, with most of them occupying important places in global and regional supply chains.

By contrast, the 10 lowest performing countries are almost all from the low and lower income groups.

Although the study shows a substantial “logistics gap” between rich countries and most developing countries, it finds positive trends in some areas essential to logistics performance and trade. Some are the modernisation of customs, use of information technology and development of private logistics services.

WHAT SCORES MEAN

The LPI is the weighted average of the country scores on the six key dimensions: (a) efficiency of the clearance process by border control agencies, including customs, (b) quality of trade and transport related infrastructure, (c) ease of arranging competitively priced shipments, (d) competence and quality of logistics services, (e) ability to track and trace consignments, and (f) timeliness of shipments in reaching destinations within the scheduled or expected delivery time.

In the LPI index 2010, Bangladesh scored 2.74 where top country Germany bagged 4.11 points. In the 2007 report, Bangladesh ranked 87th with a score of 2.47.

An overperformer is a country with a higher LPI score than expected — based solely on its income level. An underperformer is a country with a lower than expected LPI scores.

Bangladesh’s shipment lead-time came down to 1.41 days in the latest survey from 4.1 days in 2007.

In terms of international shipment, Bangladesh ranked 61st in the latest survey, which was 96th in 2007. In the customs procedure, Bangladesh ranked 125th in 2007, which is 90th now.

The 2010 report has placed Bangladesh in the 72nd position in terms of infrastructure. The ranking was 82nd in the 2007 report.

The 10 most significant underperformers are Botswana, Croatia, Eritrea, Fiji, Gabon, Greece, Montenegro, Namibia, Russian Federation, and Slovenia.

The existence of these two groups, as well as the general dispersion in performance within income groups, suggests that policy has a strong influence on logistics sector performance.

According to the report, among the top 10 low-income countries, Bangladesh ranked sixth after Vietnam, Senegal, Uganda, Uzbekistan, and Benin. Congo, Madagascar, Kyrgyz Republic and Tanzania are the other four among the low-income group.

Bangladesh’s garment export gets a boost

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Bangladesh’s garment export gets a boost
Saquib Mustafa

THE garment industry of Bangladesh has bounced back after a lull period caused by order cuts or cancellations by some top US and European buyers in the wake of the global financial crisis.

A massive diversion of orders from China, the world’s largest apparel producer, has more than compensated, say industry sources.

In the first quarter of the fiscal, garment shipment grew by a record 45 per cent to 3.4 billion dollars, with over 90 per cent of the exports going to the US and Europe, official data show.

“It’s a huge change in fortune for us,” said Golam Faruq, owner of the country’s largest sweater manufacturer and a key supplier to British upmarket retailer, Marks and Spencer.

“Recently, I got an order to make sweaters worth 12 million dollars for a Swedish buyer. In the past they used to get the supply from China. But this year we offered a far better price,” he said.

Faruq said, his SQ Sweaters also received dozens of small orders, diverted from China, as Bangladesh has became the top choice for its low-priced basic items like T-shirts, denim pants, sweaters and shirts. Bangladesh Export Promotion Bureau (EPB), which monitors shipment trends, has asked the industry to prepare for a “flood of orders”, with global recession boosting the sale of low-cost items.

At a number of expositions in Europe and North America, organised by the Export Promotion Bureau last month, top buyers asked Bangladesh to be prepared for a massive increase in orders in the months and years ahead, said EPB chief Shahab Ullah.

The people in the West are switching to cheaper items, said the importers. And it’s Bangladesh manufacturers, not the Chinese, who can supply the items at a price they now want, he said. Bangladesh specialises in low-end clothing. The garment industry accounts for about 80 per cent of Bangladesh exports and employs more than 40 per cent of its industrial workforce.

Bangladesh’s 6.2 per cent economic growth last year was bolstered by a 17 per cent increase in garment sales. For this year, the government projected the growth at 6.5 per cent, banking on garment exports remaining strong. Knitted items, led by T-shirts, which last year made up a quarter of garment exports, were the main drivers of the growth, manufacturers said.

“This year thousands of Chinese factories have shut as they are no longer competitive because of higher wages and currency appreciation,” said Fazlul Haque, chairman of the Bangladesh Knitwear Manufacturers and Exporters Association. “The buyers shifted orders to new global sourcing destinations. Bangladesh became the main beneficiary”, says Haque.

Haque said that 1,500 factories in the associations had enough orders until end of the year. But only recently the industry was a bit worried over the long-term impact of the global economic crisis.

Shahab Ullah expects Bangladesh, now the world’s second largest apparel producer, to continue to dominate in basic apparels, only if it scales up investment in new factories. “Data shows we are cashing in on the new trend,” he said. But Bangladesh can do more, provided its factories increase capacity with backward linkages for yarn manufacturing, dyeing and washing as early as possible.”

PPP policy may be finalised this month

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PPP policy may be finalised this month
BoI sends draft guideline to cabinet division

FHM Humayan Kabir

The government is likely to finalise Public-Private Partnership (PPP) policy within this month as the Board of Investment (BoI) sought approval of the cabinet regarding its draft guideline last week, officials said Thursday.

The officials said BoI has already devised the policy titled “Bangladesh Public Private Partnership Policy and Guideline 2009″ and sent it to the cabinet division to place it before the cabinet meeting.

Prime Minister Sheikh Hasina has already given her consent to the draft policy on PPP, a new investment model to attract private investment aimed at steering economic growth through infrastructure development, a BoI official told the FE.

The government started to frame the PPP policy early this year in order to upgrade the country’s ailing infrastructure, especially transport and energy sectors.

Officials said depending on the type of projects under PPP, the government would provide equity or loan to private investors to ensure their participation.

Impoverished Bangladesh needs huge investment in infrastructure development notably for power and energy sectors’ development and communications system’s improvement with a view to attracting more investment.

The development projects under the new investment arrangement would be supervised by Private Infrastructure Committee (PICOM) with secretarial support from BoI, an official at the finance ministry said without disclosing his name.

“In the draft PPP policy and guideline, BoI has proposed restructuring PICOM, led by the Principal Secretary to the Prime Minister, to look after the projects under PPP,” he said.

The government in the current financial year has introduced the PPP concept, that has turned popular in neighbouring India, and allocated Tk 25 billion in the current national budget.

Out of the fund, Tk 1.0 billion will be spent for pre-feasibility studies and other preparatory works before asking the private sector to submit their bids for PPP projects.

Besides, Tk 21 billion has been offered in the budget to accelerate the process of investment through PPP and Tk 3.0 billion for “Viability Gap Funding” as subsidy or seed money to attract private initiatives for construction of power plants, hospitals, schools, roads and highways which are non-profitable but essential to public services.

The present government has already taken moves to construct elevated expressway and metro-rail network in the capital and some power and energy projects under the new investment framework.

The donor agencies including World Bank and Asian Development Bank have lauded the PPP idea, and offered necessary support to it in the coming days.

The finance ministry said, in addition to the existing public and private investment programmes, an investment of US$28 billion would be required by 2013-14 fiscal year to achieve 8 per cent GDP growth for Bangladesh.

It added that there is US$1.04 billion investment deficit in Bangladesh in the current fiscal year.

In order to attract the said amount of investment through the PPP initiative, the government has decided to give a big push to provide incentives to the private sector.

BG to build industrial village in Keraniganj

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BG to build industrial village in Keraniganj
Economic reporter

The Bashundhara Group (BG), leading industrial and business conglomerate of the country, has initiated a move to build an industrial village at an estimated cost of Taka nearly a trillion at Pangaon in Keranigonj.

The largest edible oil refinery of the country, safe drinking water, flour mills, bag factory, edible oil tank terminal and spice grinding and packaging factories will be set up in the industrial village.

The under commissioning medium to heavy industrial units at the village are expected to generate direct employment opportunity for 2500 skilled and semi-skilled workers apart from indirect employments for 15000 others in phases, says a press release.

The mega project has been taken up with the core objective of penetrating the domestic market of consumer products by
international standard food and beverage items.

Five specialized and technically advanced companies from Europe, Malaysia, Taiwan and China are providing machineries and technical know-how for the industrial village.

As the first phase of the mega-initiative, the Bashundhara Group has entered into three separate contracts with the Oiltek of Malaysia, Sunrise Industrial Company of China and Mill Powder Tech Company of Taiwan today.

The senior deputy managing director of the Bashundhara Group Belayet Hossain signed the contracts on behalf of the Bashundhara Group while the managing director of the Oiltek K.H. Wong, sales engineer Daniel C. Wong, the managing director of the Sunrise Industrial Co. Ltd. Liu Jingsong and the assistant manager International Sales of the Mill Powder Tech Co. Ltd.

James Chou signed for their respective entities.

Adviser  of Press and Media Mohammad Abu Tayeb and senior officials of the Bashundhara Group joined at the contract signing ceremony that took place at the conference room at the Corporate Headquarters.

The estimated daily production capacity of the proposed edible oil refinery is 1000 metric tons while the capacity of the Fractionation Plant is 1000 metric tons, Neutralization Plant is 300 metric tons, water treatment and bottling plant is 550 tons, bottling of the edible oil is 150 metric tons, processing and packaging of the grinded spice is 20 metric tons.

The industries are expected to start production by this yearend.

Rahimafrooz launches GLOBATT in India

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Rahimafrooz launches GLOBATT in India
Economic reporter

A new era has begun for Rahimafrooz with the launch of its global battery brand GLOBATT for the automotive and inverter applications in the Indian market. The occasion was also highlighted by the inception of Rahimafrooz Batteries Ltd. office in Delhi and branch offices in Ahmedabad and Kolkata, says a press release.

GLOBATT batteries are made with cutting edge German technology involving expanded metal – a major differentiator from its competitors. GLOBATT Maintenance-Free batteries are offered in three ranges suitable for the Indian conditions and market – Josh, Race and Ace. Its Silver Ion Ace SMF battery is par excellence.

With its state-of-the-art manufacturing plant situated at EPZ Ishwardi, Bangladesh, Rahimafrooz Globatt Ltd. (RGL) has the largest export battery plant in South Asia. Rahimafrooz has acquired over 55 years of experience in battery manufacturing and 40 years of driving the planet. Companies right focus and resources, has been an exemplary Bangladeshi company operating in the Indian auto-battery market for the last 12 years. At present, Rahimafrooz also exports its batteries to over 42 countries world wide.

Munawar Misbah Moin, Managing Director – RGL, Sayeed Hassan, Chief Operating Officer – Storage Power Division, Abu Hasnat, Chief Operating Officer – RGL, Kazi Javed Islam, GM, Marketing, Vinod Sagar Dumra, adviser and Prashant Parida, vice- president, Rahimafrooz India Operations were present at the inauguration at The Leela Kempinsky Hotel on the side line of Auto Expo New Delhi, India. About 20 distributors from all over India and 40 dealers from Delhi were present.

Two cos to invest $52m in EPZs

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Two cos to invest $52m in EPZs
Bss, DHAKA

Two more foreign companies will invest over $52 million to expand their industrial units at the Export Processing Zones (EPZs).

Hong Kong-based company Epic Garments Manufacturing will expand its garment industry at the Adamjee Export Processing Zone at a cost of $32 million.

Chinese company Evergreen Products Factory Limited will invest $20.19 million to set up more units at Uttara Export Processing Zone for producing more items.

The two companies signed agreements with the Bangladesh Export Processing Zones Authority (BEPZA) yesterday at function, held at BEPZA in the city.

With the expansions, the two companies will create job opportunities for around 17,000 local people.

EPZs earn $1.07b from exports in four months

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EPZs earn $1.07b from exports in four months
News Report

The industrial units located in the country’s eight export processing zones earned US$ 1.07 billion from exports during July-November of the current fiscal year amid ongoing global economic meltdown, officials said.

Senior officials at the Bangladesh Export Processing Zones Authority (BEPZA) hinted that the export earnings by the enterprises in the export processing zones were likely to remain the same as the previous fiscal year.

“We expect that the earnings from the export processing zones will remain same as last year,” a senior official of BEPZA told the News Today on Thursday.

Merchandise exports by the factories in the EPZs mainly involved in ready-made garment and textiles totalled $ 2.6 billion in 2008-09 fiscal year.

Officials said Chittagong Export Processing Zone (CEPZ), the country’s oldest EPZ, earned the highest worth $ 513.05 million during the five months ending November 2009.

Dhaka EPZ fetched $ 462.61 million during the period, officials said.

Comilla EPZ export earnings stood at $ 37.01 during July-November period.

Factories under the Adamajee EPZ, near Dhaka and one of the fastest growing export-processing zone, shipped goods worth $ 33.99 million during the period.

Karnaphuli EPZ earned $ 18.65 million, Mongla earned $ 1.88 million and Uttara EPZ earned $ 0.31 million during the period.

The cumulative export earnings of the factories located to the country’s eight export processing zones until November 2009 stood at nearly $ 20 billion since 1983-84.

Industrial Police taking shape

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Industrial Police taking shape
Committee formed; force to include fire fighters, ansars
Unb, Dhaka

The government yesterday formed a seven-member high-profile committee for the formation of a new police force styled Industrial Police.

The new police force will accommodate fire fighters and ansar members for policing problems of industries in the country’s four industrial zones.

The committee, headed by Golam Hossain, additional secretary of the home ministry, has been asked to submit a complete report on raising the special police force by February 28.

Home Minister Sahara Khatun told reporters after an inter-ministerial meeting at the Secretariat.

The meeting discussed elaborately the formation of the Industrial Police with inclusion of firefighters and Ansars for effective function of the force, she said.

“We have decided in principle to deploy industrial police as soon as possible to check unpleasant incidents in the sector, especially in garment factories.”

She said earlier, the home ministry had put forward a proposal to Finance Ministry explaining the necessity of a separate specialised force for maintaining law and order in industrial belts.

The home ministry in the proposal sought 3,000 members for deployment of the force and 2,200 members for initial function, she said.

But the establishment ministry has approved 1,580 members for manning the industrial police, Sahara told the journalists.

According to the home ministry’s proposal, the industrial police would consist of four separate units to be primarily deployed in four major industrial zones–Ashulia, Savar, Gazipur, and Narayanganj–at an expenditure of Tk 20.3 crore.

State Minister for Home Shamsul Haque Tuku, Additional Home Secretary Golam Hossain and Inspector General of Police Noor Mohammad attended the meeting.

Govt to let more companies into long-distance call services

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Govt to let more companies into long-distance call services
Star Business Report

The government has moved to amend a long-distance telecom policy to award licences to more private companies to operate the services of international gateway (IGW), inter-connection exchange (ICX) and international internet gateway (IIG).

Post and Telecommuni-cation Minister Rajiuddin Ahmed Raju said this while responding to lawmakers’ queries in parliament yesterday.

The International Long Distance Telecommuni-cations Services Policy designed by the past caretaker government allowed only three private companies to operate IGW, two for ICX and IIG each.

“Once the policy is amended, it will break the domination of a few companies and will increase competition in the sector,” the minister said.

The proposals to amend the policy will be placed before the cabinet this week, Raju said.

If the cabinet approves the changes, new companies will get licences to operate the services from February.

Replying to a query, the minister said the government had earned Tk 5,692.5 crore in revenue from six mobile phone operators last fiscal year.

Raju said the six operators have a total of 5.05 crore subscribers while state-run landline operator Bangladesh Telecommunications Company Ltd has roped in 9.52 lakh subscribers until November 2009.

Efforts are underway to modernise the post offices countrywide to provide improved and fast services to people, he said.

SJIBL to use local banking software

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SJIBL to use local banking software
FE Report

Shahjalal Islami Bank Limited Monday tied up with the local software giant Leads Corporation for purchasing BankUltimus- a locally made Shariah-compliant centralized core banking software.

The leading private commercial bank- which traditionally depends on local software for its core banking operation, says that the move would help the cause of further cost cutting in online IT infrastructure while generating more employment.

The two companies inked an agreement in this regard at a formal deal signing ceremony in the city on the day.

Managing Director of Shahjalal Islami Bank Limited Muhammad Ali and Managing Director of Leads Corporation Sheikh Abdul Aziz signed the deal on behalf of their respective parties.

“There are several advantages of using local software instead of the foreign ones from the point of view of the return on investment”, said Muhammad Ali, Managing Director of SJIBL on the occasion.

“While the initial cost is around 80 per cent less for a local software compared to the overseas one, the subsequent maintenance cost is also minimal” he added.

Ali hoped that the adoption of the centralized integrated software would help his bank to achieve better transparency and accountability while expediting the whole banking operation.

“The software is compliant with Bangladesh Bank IT Policy guideline as well as BASEL- II” Leads Corporation,- the developer of the software informed.

Farm credit disbursement records 26pc growth in July-Nov period

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Farm credit disbursement records 26pc growth in July-Nov period

Nazmul Ahsan

Disbursement of agriculture credit by public and private banks has increased by 26 per cent or Tk 8.72 billion during July-November period of the current fiscal year over that of the same period in the previous fiscal, according to the latest Bangladesh Bank (BB) statistics.

Regular monitoring by the central bank and vigorous efforts on the part of the scheduled banks in disbursing agriculture loans among farmers have helped increase the volume of farm credit during the period, said Bangladesh Bank officials.

The total amount of farm credit disbursed during the period was Tk 42.49 billion, which was Tk 33.78 billion during the corresponding period of the previous fiscal year.

Of the total Tk 42.49 billion, the state-owned commercial and specialized banks along with Bangladesh Rural Development Board disbursed Tk 30.75 billion while private commercial banks disbursed the remaining Tk 11.74 billion as farm credit, according to the BB data.

“The scenario of farm credit disbursement is encouraging thanks to relentless persuasion by the BB,” a top central bank official told the FE.

“We are hopeful that the disbursement of low-cost agriculture credit will cross the target at the end of the current fiscal year”, he said.

The farm loan disbursement target for the current fiscal is Tk 115.12 billion.

The amount of disbursed agriculture credit in 2008-2009 was Tk 92.84 billion against the target of Tk93.79 billion. Of the total, government-owned banks and institutions disbursed Tk 73.31 billion, while the remaining amount was disbursed by private commercial banks, the BB data elaborated.

The interest rate for such credit is 8.0 per cent and 12 per cent to be applicable for government-owned banks and private commercial banks respectively.

According to the BB data on agriculture loan, Tk 14.52 billion was disbursed as crop loan, Tk 280 million against irrigation equipment, Tk 280.40 million against agriculture equipment, Tk 2.97 billion against livestock, Tk 2.02 billion for fisheries, Tk 430.80 million for grain storage and marketing, Tk 10.08 billion for poverty alleviation and Tk 11.87 billion for other farm-related activities during the first five months of the current fiscal year.

Industrial police likely in three months

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Industrial police likely in three months
DEEPAK ACHARJEE

The government will forms a new police wing named ‘industrial police’ department with a view to ensuring law and order in the industrial areas especially in the readymade garment units.

A draft law for the wing has been prepared by the home ministry and it would be placed at an inter-ministerial meeting to be held at the home ministry tomorrow (Wednesday), sources in the home ministry said yesterday.

A concrete proposal for the industrial police will be prepared after getting suggestions from the inter-ministerial meeting, sources added.

The industrial police, which is a long demand of the industrialists especially the garment manufacturers will primarily be manned by 1,850 members, according to the draft proposal.

A deputy inspector general (DIG)-level police officer will be appointed as director general (DG) of the industrial police and five posts of director of the wing will also be appointed on deputation from the existing law enforcement agencies.

Officers and constables of the new police wing will be appointed from the forces of Police, Ansar and Village Defence Party (VDP)  and Fire Service on deputation. Fifty per cent of manpower of the total employees of the wing would be appointed from the police department, the proposal says.

According the draft proposal, five different departments-Intelligence, investigation, operation, administration, and training — would be set up for the proposed industrial police.

Different operation units like a police station will set up in all the industrial zones and an additional police super or ansar adjutant-level officer will be the chief of each unit.

A high official of the home ministry told The Independent on condition of anonymity that the process of forming industrial police was now at the final stage and to be completed within two to three months.

“The ministries of establishment and finance have already approved the proposal and it would be placed at the cabinet committee,” he said.

While opening the 20th BATEXPO-09 on November 5 last year, Prime Minister Sheikh Hasina announced to introduce the industrial police to tackle recurring industrial violence.

According to the home ministry proposal, the industrial police would consist of five separate units to be primarily deployed in five major industrial zones — Ashulia, Savar, Gazipur, Norsingdi and Narayanganj. This will involve a cost of Tk 20.3 crore.

Square Pharma expands production unit

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Square Pharma expands production unit
FE Report

The earth-breaking ceremony of Square Pharmaceuticals Limited Unit 3 took place Sunday to meet the increasing demands from the industry.

The new unit got established near the Square Pharmaceuticals’ Plant at Kaliakoir in Gazipur.

The first phase construction will be finished in December 2012. Then the second phase will start from January 2014 and be finished by June 2016.

The company hopes that the unit will start production from the first quarter of 2013. The estimated cost of the unit 3 will be 5.14 billion. Total pro)ect area is 16 acres. The current plant, whose area is 35 acres, produces general products, Cephalosporin, Insulin, and SVPO etc.

Square Pharmaceuticals Limited Unit 3 is going to bear facilities of the state of the art technology.

Square Pharmaceuticals Limited is doing business in local and international markets with own goodwill. Their demand is increasing for providing the quality products. To meet up the increasing demand, they initiated to expand the plant.

Once the expansion gets completed, the production of Square pharmaceuticals linlited will be increased. Then, ten billion tablets and capsules will be produced each year. Injections, LVP, anti-cancer drugs and special vaccines will be produced in the new plant.

Square Pharmaceuticals Limited is the leading drug manufacturing company of Bangladesh. Using the state of the art technology, Square

Pharma produces quality products and is increasing their market share in both the local and global arenas. Square Pharmaceuticals Limited is holding the strong leadership in the pharmaceutical industry of Bangladesh since 1985. It can be noted here, the company was founded in 1958 at Pabna.

Mr. Samson H Chowdhury, Chairman of Square Group, was the Chief Guest on the occasion to inaugurate the event.

Mr. Samuel S Chowdhury, Vice Chairman, Square Group, Mr. Tapon Chowdhury, Managing Director, Square Pharmaceuticals Limited, Mr. Anjan Chowdhury, Director, Square Pharmaceuticals Limited, Ms. Anika Chowdhury and other high officials of the company were also present there.

Tk 4,500 cr freshwater shrimps to EU, other destination

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Tk 4,500 cr freshwater shrimps to EU, other destination
BSS, Dhaka

Clouds over Bangladesh’s freshwater shrimp industry is paring down as the European Union (EU) renewed its confidence once again in the second biggest foreign currency earner.

A high-powered EU delegation is due on January 18 to examine latest improvement in compliance issue as the six-month self- imposed ban on shrimp (galda) import to the EU comes to an end today.

On June 1, entrepreneurs voluntarily suspended the export of salt-water shrimp to the EU for six months following detection of health hazardous antibiotic- nitrofuran in shrimp, which resulted in cancellation of more than 50 consignments.

Bangladesh Frozen Foods Exporters Association (BFFEA) set a target to export freshwater shrimp (golda) worth Taka 4,500 crore this year.

“We have earmarked Taka 4,500 crore freshwater shrimp export to different destinations including EU if any problem does not arise and no more objections from the EU,” President of the BFFEA Musa Mia told BSS in an interview.

The association has already forwarded a proposal to the government suggesting for setting up at least two modern testing labs in Khulna and Chittagong on an urgent basis, he said adding that the BFFEA do not want to see suspension again for export.

About use of chemical in shrimp production, he said the government should make a shrimp policy forthwith to propel the growth of the industry. He recommended the government to give necessary directives to the deputy commissioners (DCs) of Khulna and Chittagong so that they could initiate a campaign to withdraw the antibiotic drug items from local markets.

BFFEA president said the sector had witnessed some sort of uncertainty after two consecutive disasters and global recession that brought down prices, forcing shut down some factories and ultimately dented the buyers demand for salt-water shrimp.

“We have got nothing from the government in the backdrop of the crisis and not even a single Penney from the Taka 5,000 crore stimulus package,” Musa pointed out.

Chairman of Bangladesh Shrimp and Fish Foundation (BSFF) Syed Mahmudul Haq told the national news agency that they want to have a pint point in every level of production like farmers, businessmen, processing and export.

The foundation has embarked on a plan to formulate ‘national plan’ in collaboration with industries association and the department of Fisheries (DoF) for promotion of the sector, said Haq.

Fisheries and Livestock ministry sources said Bangladesh exported freshwater shrimp (galda) worth 114 crore to different destinations excepting the EU during June to November last year while it was Taka 246 crore during corresponding period in 2008.

Besides, export of shrimp (bagda) worth Taka 1,348 crore during June- November in 2009, a Taka 173 crore more than that of the same period of previous year.

The country exported around 50,368 metric tons of shrimp (all categories) and earned Taka 2,774 crore last year and this year the ministry is expected to export 55,000 metric tons of shrimp.

Stock market grew by 82.22pc in 2009

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Stock market grew by 82.22pc in 2009
Bangladesh Sangbad Sangstha . Dhaka

The stock market grew by 82.22 per cent to a total capitalisation of Tk 1,90,322 crore last year from the capital base of Tk 1,04,380 crore in the previous calendar year.

Reviewing the performance of the stock market, chairman of Securities and Exchange Commission Ziaul Haque Khondker said stabilisation of the capital market and ensuring its healthy growth stood at the core of its efforts during the last calendar year.

He told the news agency on Thursday that increasing the number of mutual funds and new IPOs of big corporate houses on the back of SEC’s decision to withdraw outdated ICB mutual funds dominated efforts during the year.

The daily average transaction increased to Tk 604.63 crore during the year ended in December last compared to from Tk 281.84 crore daily average in the previous year. He said strict monitoring of the market now stood on top of everything to make sure a positive investment environment with minimum risks.

Capital market by nature is a risky place, he said, however, adding efforts remained concentrated during the period to educate real investors in making decisions understanding the market fundamentals.

Pointing to some notable decisions in the period under review, the SEC chairman said the regulatory body has already discouraged parties of buying over- valued shares and debentures by reducing loan margins.

‘We have done it to keep buyers away from risky investment,’ he said. Moreover as part of encouraging corporate houses with good fundamentals to come forward with new IPOs, the regulatory body introduced the ‘book building mechanism’ last year.

It is a system focused on allowing alternative valuation of IPOs depending on market demand and supply position to allow the company getting appropriate prices of shares.

Last year, the SEC also asked Dhaka Stock Exchange to open OCT market to facilitate trading of de-listed companies from the floor. Moreover, preparations are afoot to set up Bangladesh Institute of Capital Market to work for its expansion, he said.

Ziaul Haque said 13 IPOs were floated in the stock market last year to collect a total of Tk 726.22 crore. Same number of IPOs also came to the market in the previous year but their capital mobilisation stood at Tk 435.34 crore.