Bapex to drill 74 wells in next 20 years

http://www.daily-sun.com/details_ds-bapex-to-drill-74-wells-in-next-20-years_365_1_3_1_1.html

Roadmap for oil and gas exploration
Bapex to drill 74 wells in next 20 years
Govt to invite bidding round-2011 excluding onshore block

The graph shows Bapex’s upcoming plan of oil and gas exploration.

Shamim Jahangir

Bangladesh Petroleum Exploration Company Limited (Bapex) has prepared a 20-years roadmap to explore oil and gas in 74 exploratory and development wells in 23 structures on onshore block in the country, an official said.

“We have submitted our roadmap to Petrobangla last week,” Bapex managing director Mortuza Ahmed told daily sun.

Bapex prepared the roadmap following a directive from the Energy and Mineral Resources Division during mid of this year.

Meanwhile, the government will invite oil and gas search bidding round-2011 in December this year for exploring oil and gas excluding onshore block. It earlier planned to invite bidding for oil and gas exploration in both onshore and offshore blocks, according to energy and mineral resources division.

However, the parliamentary standing committee on power, energy and mineral resources is also in favour of exploration of oil and gas in land by the state-owned company Bapex.

According to the roadmap, Bapex would drill 13 exploratory wells and 22 development wells in 2011-15.

The exploratory wells are Sundolpur-1, Sunetra-1, Kapasia-1, Srikail-2, Mobarakpur-1, Begumganj north-1, Bajitpur-1, Fenchuganj east-1, Patya-2, Sitapahar-2, Sasalang-2, Rupganj-1, Madan-1 while the development wells are Fenchuganj-4 & 5, Semutang- 6 & 7, Salda- 3, 4 & 5, two wells at Rashidpur, Titas-17 & 18, Begumganj-3, Sunetra-2, 3 & 4, Sundolpur-2 & 3, Kapasia-2 & 3, two wells at Sylhet and Bakhrabad-9.

Bapex has planed to drill nine exploratory wells and three development wells during 2015-20. These include Chatak east-1, Joldi-5, Bajidpur-1, Jaldi-4, Madan-2, Mubarakpur-2, 3 & 4 and Shahbazpur North-1 while three development wells include Chatak east-2, Jaldi-6 and Shahbazpur north-2.

Bapex would also drill seven exploratory wells between 2020 and 2025 including Patharia-6, Kutubdia-2, Balrampur-1, Hajipur-2, Sitakundo-6 & 7, Hararganj-1 and five development wells like Patharia-7, Balrampur-2, Hararganj-1, Kutubdia-2 and Sitakundu-8.Between 2025 and 2030, the state-owned company would drill 10 exploratory wells including Bagura-3, Nandail-1, Sandwip south-1, Halda-1, Kustia-1, Hatia-1, Reju-1, Modimati-1, Sandwip-1, Sandwip west-1 and five development wells at Nandial-2, Halda-2, Kustia-2, Hatia-2 and Madumati-2.

The Bapex will conduct 2-D seismic surveys at Savar, Harargaz, Pataria, Feni, Bhola, Kuchma, Bagura, Sherpur, Sitapahar, Kasalang, Patia and Jaldi in 2011-2015, Batchia and Nandail in 2015-2020.

Besides, the company will also conduct 3-D seismic surveys at Fenchuganj, Shahbazpur, Salda, Semutang, Kamta, Begumganj, Sundolpur and Sunetra in 2011-2015 while it would conduct similar surveys at Kaliajuri, Kapasia, Srikail, Chatak, Bajitpur, Madan, Mubarakpur, Savar and Hararganj in 2015-2020 and Patharia, Feni and Bhola in 2025.

During a meeting in mid of the year, Petrobangla chairman Prof Hossain Monsur said the move to explore oil and gas in onshore block by Bapex was taken as awarding onshore exploration bids to international oil companies was conflicting to Prime Minister Sheikh Hasina’s directive to strengthen Bapex.

The Bapex has a five-year roadmap to produce 500mmcfd (million cubic feet per day) gas from 30 onshore wells till 2015.

“It’s impossible to explore oil and gas in onshore blocks by Bapex alone. So we initiated some joint venture projects with the state owned company,” another official of Petrobangla said.

So, the Bapex has a plan to drill some five wells including Jaldi, Patya, Sitakunda, Kasalang, and Sitapahar through joint venture with Chinese company Sinopec.

The Energy and Mineral Resources Division has targeted to produce additional 2,800mmcfd (million cubic feet per day) of gas by 2015. Of the target, 500mmcfd gas would come from Bapex, 500mmcfd through import and the rest through other sources.

According to the roadmap, the present demand for gas is 2,520 mmcfd which will rise to 3,043mmcfd in 2012, 3,341mmcfd in 2013, 3,591mmcfd in 2014 and 3,746mmcfd in 2015.Petrobangla now produces around 2,000mmcfd of gas a day.

Brother manufactures machine for RMG

http://www.daily-sun.com/details_ds-brother-manufactures-machine-for-rmg_366_1_3_1_5.html

Brother manufactures machine for RMG
Business Desk

Brother Bangladesh – a reputed international weaving machine manufacturer– recently manufactured a high-powered, weather-friendly and power efficient machine for the RMG sector. High officials of the Brother disclosed it at a meeting in the city recently, said a press release. Among others, Raihan Uddin Khan, country manager, Brother Bangladesh, Yashimi Ito, general manager and Mroshinori Suzuki, general manager, Brother Industries in Japan were present on the occasion.

Govt plans to build two jetties at Mongla port

http://www.daily-sun.com/details_ds-govt-plans-to-build-two-jetties-at-mongla-port_365_1_3_1_3.html

Govt plans to build two jetties at Mongla port
UK firm interested in constructing jetties under PPP
Asif Showkat

The shipping ministry has decided to construct two jetties at the country’s second largest Mongla port under a Private–Public Partnership (PPP), according to shipping ministry sources. A British port construction company – Patovo has already shown interest in construction of the two jetties.

The project styled “Permanent port on Purssur River” for construction of seven jetties was undertaken in 1980 under the second Five-Years Plan but the jetty three and four were not constructed due to fund constraints.

The shipping ministry last month took a decision on construction of those two jetties as there is the possibility that the Indian government may use Mongla port as transit port.

A proposal on construction of two Mongla port jetties under PPP is likely to be placed at the next committee of cabinet committee on economic affairs.

As per the proposal, construction of the two jetties will cost Tk 960 million which will be constructed within one year.

The two jetties will be constructed under Build, Operate and Transfer (BOT) basis, according to the proposal.

Shipping Minister Shahjahan Khan told daily sun that the country’s second largest Mongla port would be constructed as one of the modern ports. It might be used as a transit port, he added.

He further said two jetties of Mongla will be constructed under PPP initiate, and so we hope foreign investors will show interests in investing in implementing the project, he added.

The minister also said the British company ‘Patovo’ has already shown interest in construction of two jetties. Construction of jetties will start from next year, he added.

Meanwhile, Mongla Port has under taken eight projects at a cost of Tk 3.07 billion to make the port dynamic. Of them, one project has already been implemented and implementation of the remaining projects is under process.

Earlier, on an average only 4 to 5 ships used to anchor in the port every month but now-a-days 8 to 10 ships are arriving in the port per day as the facilities in the port were enhanced due to direct initiative of the present government.

Source said car carrying ships have started arriving at Mongla port for the first time. Moreover, according to decision of the government 40 percent imported food grain is being unloaded at this port. At the same time, arrival of fertiliser carrying ships has also been increased significantly.

The revenue income through Mongla Customs House was doubled in the outgoing financial year. Mongla Customs realised Tk 8074.6 million against the target of Tk 3463.4 million in 2010-2011 financial year. The record amount of revenue income from the port was possible due to increased loading and unloading and arrival of more foreign ships, official source said.

Customs source said Tk 2314.6 million was realised as duty in 2004-2005 financial year. Later, arrival of ships and loading unloading has fallen in Mongla Port for various reasons. For this reasons revenue income fell to Tk 1744.6 million in 2005-2006.

NSN Liquid Net to spur broadband growth

http://www.theindependentbd.com/business/others/75441-nsn-liquid-net-to-spur-broadband-growth.html

NSN Liquid Net to spur broadband growth
Author / Source : Staff Reporter

DHAKA, OCT 15: Liquid Net, a new way to deliver and manage broadband, introduced by Nokia Siemens Networks (NSN), is expected to help broadband growth in Bangladesh.

“Broadband demand is fluid, so networks should be too in order to assure maximum outcome,” country head of Nokia Siemens Networks Markku Nieminen said. Managing the flow more efficiently, the new technology will benefit both operators and the end users, he claimed.

According to him, the demand of broadband is becoming highly unpredictable, fluctuating as people use broadband and voice services on the move and switch between services and applications at various times. Thus margins are being squeezed as competition heats up. Yet traditional telco hardware, while in general very reliable, has been fixed in both location and in its ability to support other uses, with the result that networks are dimensioned to meet peak demand.

Nokia Siemens Networks’ Liquid Net breaks through conventional resource limitations to unleash frozen network capacity into a reservoir of resources that can flow to fulfil unpredictable demand, wherever and whenever people use broadband, Nieminen explained.

“Liquid Net creates networks that can adapt in an instant to changing customer needs, using existing capital investments more efficiently and generating entirely new revenue opportunities,” he also added.

According to Nieminen, the Liquid Net uses automated, self-adapting broadband optimization to deliver services and content to ensure the best customer experience by always being aware of the network’s operational status and the services being consumed. In addition, Liquid Net channels traffic in the transport network along the path of least resistance and lowest cost between sites, he said.

Explaining how the new technology would help operators, Nieminen said, the network will be dimensioned on average traffic load than peak load. Together with commercial off this the shelf ATCA based hardware allows operators more efficient use of capital expenditure.

A centre to display SME products

http://www.thedailystar.net/newDesign/news-details.php?nid=206873

Pockets of change
A centre to display SME products

Industries Minister Dilip Barua looks at products displayed at the newly opened SME Centre in Karwan Bazar, Dhaka. Photo: PALASH KHAN

Md Fazlur Rahman

The SME Foundation has opened a product display and information centre in Dhaka to help small and medium entrepreneurs market their goods and products, bridging the gap between producers and consumers.

The centre, located on the second floor of Royal Tower in Karwan Bazar, is currently showcasing over 500 products by 58 entrepreneurs.

Before opening the centre, the foundation sent letters to entrepreneurs inviting them to display their products at the centre.

“We got an immense response from the entrepreneurs. A huge number of products were sent over, but we cannot display all of their products,” said Syed Rezwanul Kabir, managing director of the foundation.

Industries Minister Dilip Barua, also chairperson of the foundation, said the centre would add a new dimension to the marketing of SME products.

“The SMEs have long been demanding such a centre so that they can market their products.”

The minister said the small and medium enterprises (SMEs) are being deprived of fair prices as many of them cannot market their products.

Barua also said one display centre is not enough for all the SMEs in the country. “The lone centre will not serve all and it would be tough for the rural SMEs to display their products in Dhaka.”

“So we plan to open this type of a centre in every district of the country. In phases, we will also open the same at the upazila levels. The foundation has also taken steps in the regard.”

Officials said establishment of the display centre is a unique way of familiarising the products. It is the best way to promote products and showcase skills of the manufacturers.

This will help manufacturers establish a bridge between buyers and sellers, both in local and international markets.

Kabir said it is a time-befitting step and a step forward in improving the country’s SME sector.

“Although we have started in a small way, the centre will help entrepreneurs immensely.”

Kabir said the centre would help entrepreneurs showcase and market their products in a more organised way. “So far, entrepreneurs have not been able to market their products with international buyers. They market their products separately, in a scattered manner. As a result, they failed to tap the market although they make world class products.”

He said the products displayed at the centre are of high quality and can be sold at any store in the world.

The foundation chief said they would ask the foreign ministry to promote the products. “Whenever a trade delegation visits the country, we will ask the ministry to arrange a visit to the centre.”

Kabir said the foundation also plans to showcase more products. “We have not been able to give space to all the entrepreneurs. We have to open more centres to accommodate more products.”

He urged the government to come forward so that the foundation can open offices across the country. “We have to increase the capacity of the Dhaka office. Besides, we have to open offices in at least the divisional cities. Now there is no scope to control everything by sitting in Dhaka.”

fazlur.rahman@thedailystar.net

Govt launches interest-free microcredit for farmers

http://newagebd.com/newspaper1/business/36957.html

Govt launches interest-free microcredit for farmers
Bdnews24.com . Dhaka

Livestock and fishery farmers will now be able to avail microcredit from the government free of interest.

Fisheries minister Abdul Latif Biswas launched the service under two directorates of the ministry at a programme at Belkuchi upazila in Sirajganj on Saturday.

The ministry has created a Tk 60-crore fund for the project. A farmer will be able to avail a maximum of Tk 50,000 for cattle and buffalo farming, Tk 40,000 for goat and sheep farming and Tk 20,000 for poultry farming.

However, the loan will not be handed directly over to the farmers. Officials of the directorates would buy the animal for the farmer using three-fourths of the fund. The remaining amount would be given to feed the animal.

The farmers will be given a one-year grace period before they start paying the loan instalments.

Tk 60cr fund for self-employment of youths

http://www.newstoday.com.bd/index.php?option=details&news_id=41741&date=2011-10-16

Tk 60cr fund for self-employment of youths

The government has set up a Taka 60 crore revolving fund for distribution as microcredit among promising unemployed youths for their self-employment, reports BSS.

The fund would be disbursed under the Ministry of Fisheries and Livestock. Of the total, Taka 20 crore would be spent under the Departments of Fisheries and Livestock.

Fisheries and Livestock Minister Abdul Latif Biswas inaugurated the distribution by giving microcredit to 20 youths at Borodul Union under Belkuchi upazila in Pabna.

Acting deputy commissioner of Sirajganj Golam Rabbani chaired the function, which was addressed, among others, by joint secretary of the ministry Mosharraf Hossain, director general of Livestock Department Ashraf Ali and director Mosaddek Hossain.

Speaking on the occasion, Biswas said the country has little opportunity to provide institutional jobs. Keeping this in view, he said, the government has been inspiriting unemployed and educated youths towards rearing livestock and fish cultivation.

The microcredit will not only generate employment opportunities but also help cut poverty, he added.

The loan is completely interest-free and the borrowers will not have to repay in the first year, officials said.

They said Taka 50,000 would be given for rearing cow and buffalo, Taka 40,000 for goats, and Taka 20,000 for poultry farms.

A farmer with a difference

http://www.thedailystar.net/newDesign/news-details.php?nid=206871

Pockets of change
A farmer with a difference

A foreign variety of onion is being cultivated on a field in Shibganj upazila, Bogra. Top, An asparagus field in the same area. Photo: HASIBUR RAHMAN BILU. Inset- Md Anser Ali

Hasibur Rahman Bilu, Bogra

Vegetable grower Md Anser Ali, 60, has made a living from farming uncommon produces. For the last few years, he has been cultivating foreign vegetables, including asparagus, to sell to markets in Dhaka and Chittagong.

Ali won the Citi Micro Entrepreneurship Awards-2010 as the best micro entrepreneur of the year in agriculture. With his farming practices, he is now able to earn an average of Tk 6 lakh a year.

He first began farming foreign vegetables about 20 years ago on seven decimals of land by investing only Tk 200. Pioneering the business in the Bogra district, Ali received Tk 3.5 lakh as prize money on September 17, 2011.

Agriculturist Md Mahatab Uddin first encouraged him to cultivate the foreign variety of capsicums in 1992 in his village Bujruk Shokra under the Shibganj upazila of Bogra district. However, harvests were not great for a lack of knowledge on cultivation methods.

He cultivates 660 decimals of land for the winter season and 231 decimals for summer to supply foreign vegetables to several international hotels in the capital.

“My net profits have reached Tk 2.70 lakh a year selling vegetables like pepper, lettuce, capsicum and asparagus,” said Ali.

He has been commercially producing sweet corn, hybrid cabbage, parsley, Chinese cabbage, hybrid broccoli, hybrid onions and some other foreign vegetables, he added.

“Obtaining quality seeds is one of the main problems in producing foreign vegetables in the country,” said Ali. “I usually earn Tk 70,000 a year selling asparagus to several hotels in Dhaka and Chittagong. February to March is the peak time for asparagus.”

With profits from selling vegetables, he has purchased 429 decimals of land in the last 20 years to exclusively cultivate foreign vegetables.

“I have been maintaining my family and making payments on loan repayment by selling vegetables,” he added.

He said vegetable cultivation, especially the foreign varieties, is more profitable than paddy or other crops. “I am not interested in the commercial cultivation of paddy for low profits. But I usually cultivate 116 decimals of land for paddy, spices and some local varieties of vegetables for my family to consume.”

Ali supplies 20 varieties of foreign vegetables to eight buyers in Dhaka and Chittagong. He counts an average of Tk 1.50 lakh as labour payment to grow the foreign varieties.

Creating jobs for local men and women on his vegetable fields as agriculture workers, he pays Tk 150 for eight hours of labour.

“For the lack of a direct railway connection between Bogra and Dhaka, I have to pay Tk 1 lakh extra in transportation costs.” Vegetable growers in Bogra and adjacent districts have to count large sums of money as truck fares.

“I also plan to export vegetables but I don’t know how. I need government assistance to do so.”

Md Sagor Mia, 22, a farm labourer of the same village, earns Tk 4,500 a month working on the vegetable fields. He is the sole bread earner in his family.

“I was totally jobless before joining as a labourer in the vegetable fields a year ago,” he said. He works for eight hours on the field from early morning to noon. He said he is happy to be able to contribute to his family.

“I keep only Tk 500 as pocket money and give the rest to bear my family expenses.”

Another farm labourer, Md Wasim Ali, 21, has been working on the vegetable fields for seven years now. “My savings reached Tk 15,000 in the last 5 years.”

“I even cultivated sweet corn on 20 decimals of rented land for the first time recently for high demand of the crop,” he said.

He invested Tk 11,000, including land rent worth Tk 8,000, and expects Tk 30,000 in sales.

“I hope to become a successful vegetable grower in future,” said Wasim Ali, who was unable to study beyond class five due to poverty.

He used to receive only Tk 50 a day as a farm labourer in the early years; he gets Tk 150 now.

Surface water irrigation boosts crop yield by 20 pc: experts

http://www.bssnews.net/newsDetails.php?cat=0&id=206196&date=2011-10-15

Surface water irrigation boosts crop yield by 20 pc: experts

DHAKA, Oct 15 (BSS) – Irrigation through surface water increases crop yield by 20 percent while it also reduces production cost as surface water contains composed fertilizer.

“Less chemical fertilizer is needed for crop production if we use surface water in irrigation” Chief Engineer (minor irrigation) of Bangladesh Agricultural Development Corporation (BADC) Md Abul Quasem Miah, who is now on Preparatory Leave for Retirement (PLR), said this today while talking to BSS.

Use of surface water in irrigation cuts crop production cost sharply as it reduces consumption of chemical fertilizer as well as irrigation expenditure, he said adding that this would also boost crop production by 20 percent.

Quasem said a total of 36 projects at a cost of around Taka 400 crore so far have been implemented in the fiscal year 2009-10 and 2010-11 mainly to promote use of surface water in irrigation.

Under the projects, 1444.62 kilometers of canal excavation or re-excavation were carried out from July 2009 to June 2011 while 44.5 km dam were constructed in the same period.

Taking success of the projects into consideration, Quasem said 30 more projects are being implemented to dig out 991.5 km canal aiming to increase use of surface water.

Water table in the groundwater is going down at alarming rate in 192 upazilas due to over use of groundwater for irrigation, he said and suggested increased use of surface water for irrigation to avoid adverse impact on ecology.

He feared that overuse of groundwater would make adverse impact on environment and agriculture sector.

Citing example of neighboring countries for preserving rainwater, Quasem said, “We should immediately take steps for preserving rainwater by using fallow land for promoting surface water in irrigation.”

In the last Rabi season, total irrigated area was 52,17,626 hectares, while groundwater covered 41,27,387 hectares which was 79.10 percent of total irrigated area, Quasem added.

He said surface water irrigation covered 10,90,239 hectares which was 20.9 percent of total irrigated area, according to a Minor Irrigation Survey Report (2009-10).

The survey was jointly conducted by BADC, Department of Agriculture Extension (DAE) and Barind Multipurpose Development Authority (BMDA).

Chief Geologist of BADC Khandaker Fazal Hasan, who is now on PLR, said that farmers in many places during Rabi season suffer from inadequate irrigation water due to low water level.

“Groundwater level is declining gradually in the country as irrigation still depends largely on groundwater. We should reduce our dependency on ground water for irrigation to ensure ecological balance,” he added.

Irrigation cost through groundwater is higher than surface water, he said adding that surface water will cut crop production cost along with boosting production rate.

Vast tract of farming land in southwestern region particularly Bagerhat, Satkhira and Khulna have already been affected by saline water posing a serious threat to crop cultivation, Hasan said.

Use of surface water in irrigation will protect the farming land from salinity, he said adding, “We can increase availability of surface water by digging canals, river dredging and preserving rain water.”

Massive plan taken up to cultivate winter vegetables in Narsingdi

http://www.bssnews.net/newsDetails.php?cat=4&id=206187&date=2011-10-15

Massive plan taken up to cultivate winter vegetables in Narsingdi

NARSINGDI, Oct 15 (BSS) – Department of Agriculture Extension (DAE) took a massive plan to cultivate more winter vegetables in all the six upazilas in the district in the current season.

DAE sources said, a total of 9000 hectares would be brought under the cultivation programme this year in the district with the production target of over one-lakh tonnes of vegetables.

Vegetables to be grown include radish, brinjal, bean, cauliflower, cabbage, tomato, pumpkin, spinach (palong shak), red leafy (lal shak).

Farmers in some areas have already started preparation for ultivating vegetables with enthusiasm.

Sources said, The Local DAE has inspired and motivated the farmers to grow vegetables free from insecticide treatment.

Our own laptop

http://www.thedailystar.net/newDesign/news-details.php?nid=206379

Doel
Our own laptop

Fauzia Sultana

Telephone Shilpa Sangstha (TSS), Bangladesh, where analogue phone sets were manufactured long before the digital dominance, will now be the hub for assembling Doel netbooks and laptops.

Named after the national bird, Doel is the first ever laptop brand to be assembled in Bangladesh, which is believed to revolutionise the high tech industry of the country. With the aim to bridge the communication gap between our people and ICT, by providing laptops at an affordable rate, this initiative provides scopes to build capacity, train local manpower and strengthen the country’s ICT expertise.

Doel netbooks and laptops come in four different models: Primary, Basic, Standard and Advanced. The first three models are netbooks, and the Advanced model is a laptop. While the primary model is designed for simpler applications like e-booking or playing games, the advance model comes with all kinds of modern apps, at an attractively low price.

There are also variations in design and the netbooks and laptops come in four different coloursred wine, silver and the usual black and white. Starting from Taka 10,000 (less than $150)-27,000, the prices of the different models are well within the reach of the average and low income population of the country.

Compared to the laptops and netbooks available in the market within this price range, Doel netbooks and laptops come with a better configuration of components that are imported from Malaysia and China.

Financed by the Government of Bangladesh, these netbooks and laptops are being assembled at the state-owned telecommunications manufacturing unit, TSS. Gonona Technologies Limited, a local IT company has been providing IT solutions and consultancy services, designed the product and is assisting the set up of the manufacturing line at TSS in co-operation with TFT, a Malaysian based company.

A worker assembles a Doel notebook at its production facility at the Telephone Shilpa Sangstha. Photo: Courtesy

On asking Nazmul Chowdhury, managing director and CEO of Gonona, why should someone buy a Doel netbook/laptop, when there is a variety of choices in the market, he shares, “Not only are Doel netbooks and laptops cheap, but they are sophisticated too. Besides, every netbook or laptop comes with a warranty of one year. And since it is assembled here, quality control of the laptops can be monitored closely and efficiently.”

The unique feature of Doel netbooks and laptops is the operating system (OS). The OS is designed in both Bangla and English. “Since computer literacy in the rural areas is low due to incompetency in English, we decided to design the OS in Bangla to help people in the rural areas learn easily. However, it can always be changed to English, when needed,” adds Nazmul.

Be it for educational purposes, business or simply because it’s a fashion statement, everyone wants to own a stylish netbook or laptop. And many a times this longing is conquered by the price tags. But with the launching of Doel netbooks and laptops in Bangladesh, this scenario will soon be history!

Rice mills going automatic

http://www.thedailystar.net/newDesign/news-details.php?nid=206220

Sown & Reaped
Rice mills going automatic

(L-R): Workers are drying paddy using traditional methods in a yard at a husking mill in Ishwardi, Pabna. Inset, Paddy is being processed at a traditional husking mill in Kahalu upazila of Bogra. A view of an automatic rice mill. Workers are packing processed rice in Kahalu upazila of Bogra. Photo: HASIBUR RAHMAN BILU

Sohel Parvez

The rice milling sector in Bangladesh is undergoing a change. New automatic rice mills are being set up at a growing rate, raising competition for thousands of small and medium husking mills. However, the small husking mills are still the ones dominating the market.

But their market share is shrinking, as many husking mills are pulling out.

Over the last decade, several hundred automatic and semi-automatic rice mills were established in various rice producing zones.

Naogaon, Chapainawabganj, Dinajpur, Kushtia and Noapara of Jessore are some districts that have attracted investment to set up big automatic rice mills.

Industry people say more investments are coming up to set up automatic rice mills.

In 2005, there were only 200 semi-automatic and automatic rice mills. The number has tripled to more than 600 now, says KM Layek Ali, convener of Bangladesh Rice Mills Association, a body of about 17,000 mills.

“This sector has attracted many large investors to set up big automatic rice mills as demand for rice processed at automatic mills has risen,” says Ali.

Industry insiders link the growth in numbers of automatic rice mills to changing consumer preferences. End users want better quality rice, a longer shelf life, less broken quantities and rice that is almost free from inedible substances, such as stones.

Other factors behind the rise in investment in the sector include — an increase in production due to a decline in broken grains, scope to make cooking oil by using rice bran and higher market price.

“Rice processed by the automatic crushers gives more full grains of rice by reducing the percentage of broken rice, thus increasing the overall quantity of rice production,” Ali says.

He says the quality of the grains from the automatic mills is better because of drying, parboiling and crushing through machines, thus reducing wastage and workloads.

On the other hand, husking mills require manual involvement in parboiling or drying in the sun before milling, adds Ali.

The automatic rice mills also receive government incentives — the food department purchases 20 percent more rice from mills that use automatic crushers.

“The automatic crushers help produce good quality rice as the percentage of whole grains is higher than the output from the husking mills,” says a senior official of the food department, seeking anonymity.

Md Abdur Rashid, managing director of Rashid Agro-Food Products Ltd, said rising consumer demand for rice processed at automated mills will attract more investment in the area.

“People prefer rice processed at the mills because it has a longer shelf life, and it is free from bad odour and dust and other particles, such as stones,” says Rashid.

“But more investment will come and the automatic mills will dominate the market in the next 10 years.” He plans to establish another automatic unit with a daily processing capacity of 500 tonnes.

Nirod Boron Saha, a husking mill owner and trader in the northern district of Naogaon, says husking mills at present have control over two-thirds of the market.

“But the share of the automatic rice mills is increasing as husking mills are losing out to competition and demand is increasing for automatically-processed rice.”

“Within a couple of years, the share of automatic-rice mills will be half and the extent of their control on the rice market will rise further,” he says, citing the competitive advantages of the automatic-mills, such as low wastage, higher prices due to longer shelf lives and less broken grains.

KAS Murshid, research director of Bangladesh Institute of Development Studies, says the rice milling sector has undergone remarkable changes due to massive investment in setting up automatic rice mills.

He says expansion of the automatic-rice mills has created demand for quality rice and consumers depend on rice processed at these mills.

Enhanced competition or risks of oligopoly

Presently, millers are the key actors in the rice market. Most of the mills, including husking and automatic, purchase paddy from farmers through their commission agents, or wholesalers mainly during the harvest seasons with an aim to build stocks for processing and selling to markets for the rest of the year.

Analysts and industry people say the rise of automated and semi-automated rice mills has intensified competition in rice and paddy market.

They also say the automatic mills will improve efficiency, help cut unit costs of paddy processing, increase percentage of unbroken rice and reduce post-harvest losses.

The automatic mills also separate rice husk and bran, which have separate market values.

But analysts warn about the risks of an oligopoly (a situation where a particular market is controlled by a small group of firms) in the rice processing market unless the number of automatic rice mills increases.

Prof Mustafizur Rahman, executive director of Centre for Policy Dialogue (CPD), says the rise in rice production has created scopes for the entry of more players in rice processing.

“If more players come, it will intensify competition and thus benefit farmers unless there is an oligopoly,” he says.

“Control over the rice processing market by a few large mills, however, leads to a monopoly and price control, which may go against the interests of both farmers and consumers if the mill owners do not follow ethical business practices,” says economist Mahabub Hossain.

“We hear complaints of holding of large stocks to manipulate prices at times of scarcity and the over-milling of rice to transform the BRRI dhan 28 into minikit, to cheat consumers,” he adds.

Hossain, executive director of BRAC, says the small rice mills create jobs, particularly for women.

Saha, the trader and husking mill owner, says the government should provide incentives to the husking mills to ensure competition in the market.

Planning Commission Member MA Sattar Mandal, also former vice chancellor of Bangladesh Agricultural University, also agrees.

Small rice husking mills have roles in building stocks at local levels, and these might help reduce the control and influence of large mills in the market, said Mandal at a session at the food security policy workshop in Dhaka last week.

sohel@thedailystar.net

Hirdaramani Group of Sri Lanka expanding business in Bangladesh

http://www.bssnews.net/newsDetails.php?cat=2&id=205630&date=2011-10-12

Hirdaramani Group of Sri Lanka expanding business in Bangladesh

DHAKA, Oct 12 (BSS)- A sister concern of Hirdaramani Group of Sri Lanka is keen to expand its business at Karnaphuli Export Processing Zone in Chittagang, a BEPZA press release said here today.

This foreign owned company Kenpark Bangladesh Apparel Limited will invest 50 million US dollars to set up their unit for manufacturing garments. This company will also create employment opportunities for 10,970 Bangladeshi nationals, the release added.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority (BEPZA) and Kenpark Bangladesh Apparel Limited at BEPZA Complex today.

A Z M Azizur Rahman, General Manager (Investment Promotion) of BEPZA and Namal Rajapakse, Chief Financial Officer of the Sri Lankan Company, signed the agreement on behalf of their respective organizations.

Major General ATM Shahidul Islam, Executive Chairman, A K M Mahbubur Rahman, Member (Finance) and other officials of BEPZA were present at the signing ceremony.

Barapukuria to conduct survey to determine more coal reserve

http://www.daily-sun.com/details_ds-barapukuria-to-conduct-survey-to-determine-more-coal-reserve_364_1_3_1_0.html

Barapukuria to conduct survey to determine more coal reserve
Present reserve is 392m tonnes at 10 square km area
Shamim Jahangir

Barapukuria Coal Mine Company Limited (BCMCL) is contemplating to conduct a comprehensive survey in Dinajpur to determine coal reserve outside the existing mine site. “Coalmine leasing site is spread over an area of 10 square kilometers at Barapukuria with 6.6 square kilometres coal basin, which has a reserve of 392 million tonnes,” BCMCL managing director M Quamruzzaman told daily sun.

But the government doesn’t have any idea about the coal reserve outside 10 square kilometers area, BCMCL boss said.

“It’s important to determine coal reserve as the government’s vision 2021 focuses on generating 20,000MW of electricity from coal-fired power plants,” he said.

The government would require 25 million tonnes of coal to generate 20,000MW of electricity, he said.

It has targeted to supply 10 million tonnes of coal annually from local coalmines while the rest 15 million tonnes comes from imported coal for producing huge quantity of power, he added.

“The target could be fulfilled by extracting 10 million tonnes of coal at Barapukuria mine site within next two to three years,” he said.

The BCMCL is now producing one million tonnes of coal annually, he mentioned.

“Survey at Bara-pukuria would help us to determine additional coal reserve,” the official said.

Last fiscal year, the BCMCL extracted around 0.70 million tonnes of coal. It provided around 0.5 million tonnes of coal to 250MW Barapukuria power plant with per tonnes cost of US$84 which is $55 lower than the market price.

The company sold over 0.10 million tonnes of coal to brickfields at $139 per tonnes. BCMCL has a stock of around 0.25 tonnes of coal.

Tk 5.0b for stress-tolerant paddy varieties approved

http://www.thefinancialexpress-bd.com/more.php?news_id=152868&date=2011-10-14

Tk 5.0b for stress-tolerant paddy varieties approved
Yasir Wardad

The government Wednes-day approved an integrated agricultural project of Tk 4.99 billion to release stress-tolerant varieties of paddy and boost breeder seed production in two divisions to increase farm productivity, ministry sources said.

“The five year ‘Integrated Agricultural Productivity Project’ (IAPP) under agriculture ministry and fisheries and livestock ministry has been approved for the development of stress-tolerant varieties and their technology aiming to increase the farm productivity significantly in Barisal and Rangpur divisions,” a high official of the agriculture ministry said.

“Executive Committee of National Economic Council (ECNEC) Wednesday has approved Tk 4.995bn for the project of which 3.7 billion would be available as project aid and 1.295 billion from government fund”, he said.

He said, “the project would be implemented through five components while the project duration is from June 2011 to 2016″.

Asked about the components he said, “Bangladesh Rice Research Institute (BRRI), Bangladesh Agricultural Research Institute (BARI) and Bangladesh Fisheries Research Institute (BFRI) will be involved in the component– technology development”.

Department of Agriculture Extension (DAE), Department of Fisheries (DoF), Department of Livestock (DLS), Bangladesh Agricultural Development Corporation (BADC), Seed Certification Agency (SCA) and Community Mobilisation of Ministry of Agriculture will supervise technology adaptation.

“BADC would also be involved in water management while Project Management Unit of agriculture ministry will assist technical management, expertise development and project management”, he said.

He said that under the project five new rice varieties, three wheat, four pulse seed, three oil seeds, two maize seeds and nine fish varieties would be developed.

The project has targeted to increase the production of rice by 23 per cent, wheat by 10 per cent, pulses 10, maize 12, oilseed 12, fish 25, meat 25, day-old-chicks (DOCs) 20 and milk 100 per cent from the present productivity.

He said eight districts under Barisal and Rangpur divisions would remain under the project.

“The 54 upazilas under Rangpur, Nilphamari, Lalmonirhat, Kurigram, Barisal, Barguna, Jhalakathi and Patuakhali districts would be brought under the project,” he said.

The official said that 0.34 million people would get direct input support of crop, fish and livestock and would be the direct beneficiaries.

Seed wing head of the agriculture ministry Anwar Faruqe said, “Food security could not be secured without ensuring seed security”.

“And seed security means sufficient quality seed suitable to our climate,” he said.

Mr Faruqe expressed his hope that this project would help the country get many stress-tolerant varieties to boost farm productivity.

He also said that nearly 25 per cent woman farmers of the project area would be benefited by the project.

According to the ministry, the project duration is from June 2011 to June 2016 and it would create jobs for 755 people.