SME: a driver of growth

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Business Column
SME: a driver of growth

Visitors crowd the fifth SME Fair that opened at Bangabandhu International Conference Centre in Dhaka yesterday. SMEs have the potential to cut poverty. Photo: Rashed Shumon

Tarique Afzal

The struggle for independence will go in vain if the sectors of economic development, resource utilisation in an efficient fashion and overall maximisation of benefits for all remain unattended.

In pursuit of development, the nation duly experienced the taste of growth in microfinance and SME.

Prime Minister Sheikh Hasina took pragmatic measures to boost small and medium entities to create opportunities of economic growth and development.

Today, SME remains the engine of economic growth and considering the population of Bangladesh, SME offers large-scale employment and income earning opportunities at relatively low costs, especially in the rural areas. It strengthens efforts to achieve high and sustainable growth, which is a prerequisite for an exit from widespread poverty and socio-economic deficit.

In the convergence of growth in SME, women entrepreneurship plays a pivotal role. The obligations of society towards such events remain unattended and incomplete.

The prime minister continues to seek and communicate to all and her words — “Our aim is to achieve the goals of ‘Digital Bangladesh’ and become a middle-income country by 2021.”

I believe it is time for all to contribute and convert this vision into a sustainable reality.

A combined interaction of the forces of population, technological advantages, banking support and market coordination will create opportunities for SMEs to grow and prosper at all levels of development, which are often ignored by the traditional approach to their economic strengths and development potential.

The significance of the SMEs is that it is a source of new business creation and employment generation in the developed countries. The recent structural shifts in industrial production from the so-called industrial approach of mass production in USA to a more flexible and adaptable production regime in response to constantly changing market opportunities have led to a notable resurgence of these industries in the west. The re-emergence of the SMEs in the developed world makes economic case for fostering development of these industries more robust than ever before.

Defining the potential of women entrepreneurship in support of SME development, the educational status of women in Bangladesh shows that they are being increasingly educated.

The employment statistics highlight that women in the rural sector are either self-employed or employed in family-based enterprises that include both agricultural and non-agricultural sectors. These activities that include homestead agriculture, livestock and poultry rearing, fish farming, nursery and tree plantation, tool making, fish net making, food processing, tailoring, and rice processing have been regular and invisible sources to family income supplementation.

A sector-wise distribution of employed persons in rural areas shows that agriculture is the pre-dominant source of female employment, followed by the manufacturing sector. Women in Bangladesh are employed in low category jobs. Most of them are employed in agriculture, forestry and fisheries, where the share of the women employees is 78 percent.

Together, the various categories of SMEs are reported to contribute between 80 to 85 percent of industrial employment and 23 percent of total general employment (SEDF, 2003). However, discussions surround their relative contribution to Bangladesh’s industrial output due to rarity of reliable information and different methods used to estimate the magnitude.

The most commonly quoted figure by different sources (ADB, World Bank, Planning Commission and BIDS) relating to value-added contributions of the SMEs is seen to vary between 45 percent and 50 percent of the total manufacturing value added.

We are in a new era of economic development involving diversified models, and at times, the nation’s weakness can become its greatest strengths.

It is time to strive on the route and uphold the momentum; SMEs have the potential and can create such dimension to reduce poverty to a satisfactory level.

As a core partner, the financial sector is probably amongst the fastest growing segments of most economies. Because of the very nature of the industry, special attention is warranted for improving good governance not merely for domestic efficiency and better flow of international finance but also to avert contagion effects and systemic risks. The opacity, illiquidity, informational asymmetry, and coordination problems aggravate the agency issue in this sector thus calling for substantial regulation and supervision. In recent times the hard and steadfast situations could have been avoided if the investments of the said sector were delegated in many and qualitative folds mainly in SMEs. The risks are low and the returns are equally higher due a mass volume. A time for a focus shift at large appears imperative for all.

To conquer and uphold the vision of our nation’s independence, the fore path of development of SME shall steer along as our methodology should be to decentralise financial investments throughout the nation in sections of SME, encourage women entrepreneurs to participate in the event and minimise the bureaucracy of funding into the sector. The intentions are to be widespread based on a similar tune to predict a uniform method to attain success.

To conclude, and determine the way forward, one must realise that functioning financial intermediation is of critical importance for SME development, however it is also useful to emphasise that the success of any financial intermediation depends on several factors.

The good practices in financial intermediation, especially for SMEs, fall into three broad areas; first, the investment climate must improve through rational policies, better access to finance, and stronger institutions.

Second, the financial sector needs to become broader, competitive, and efficient to provide entrepreneurs with alternative sources of investment capital, a diversified selection of new and innovative products, competitive rates, and efficient services to make their investments viable.

Third, ratings, improving skills, trades, entrepreneurship, and other business development advisory services would ensure success and help strengthen financial intermediation for SMEs.

Thus, a three-pronged programme where the elements are mutually complementary needs to be adopted to build a strong foundation for an efficient and effective financial intermediation system that will support private-sector development and help accelerate economic growth.

The writer is the chief executive of a rating agency and can be reached at tariqueafzal@hotmail.com

Turkish firm to increase apparel imports

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Turkish firm to increase apparel imports
Business Report

Tema Group, a leading Turkish company, has said it would raise its annual woven and knitwear imports from Bangladesh over the next few years to cross the US$ 500 million-mark by 2015.

However, the nearly US$ 1 billion Group urged Bangladeshi apparel suppliers to focus on quality aspect to rule out delays in shipments.Report from Istanbul said Edward Southall, an Executive Member of Tema Group, said it is no longer enough to be good for both Tema and Bangladesh to remain competitive.

Problems like quality weakness to late delivery of goods are resulting in an increase in the cost of sourcing apparels. He said quality assumes importance at a time when the demand for apparels is declining owing to the eurozone crisis and fears of recession.

The Tema Group’s apparel imports from Bangladesh would increase owing to the weakening of Bangladesh currency Taka and sourcing from China becoming costlier,  Southall said.

Bapex earns Tk 880m profit in FY11

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Bapex earns Tk 880m profit in FY11
Business Desk

Bangladesh Petroleum Exploration and Production Company Limited (Bapex) made Tk 880.3 million profit during 2010-11 fiscal as it fetched Tk 1.67 billion income against expenditure of Tk 788.5 million.

This was revealed at the 22nd annual general meeting (AGM) of the company at a city hotel recently.

Mohammad Mejbah-uddin, chairman of Bapex board and secretary of Energy and Mineral Resources Division presided over the AGM, said a press release.

Members of the board of directors of Bapex and a large number of shareholders attended the meeting.

Deal signed to set up 3 coal-fired power plants

http://www.theindependentbd.com/national/85625-deal-signed-to-set-up-3-coal-fired-power-plants.html

Deal signed to set up 3 coal-fired power plants
Another 18MW solar power plant to be set up in private sector
Author / Source : Independent Online/UNB

DHAKA: The government on Tuesday signed a deal with local conglomerate Orion Group to set up three coal-fired independent power producer (IPP) plants in the country.

The Power Development Board (PDB), on behalf of the government, signed another deal with a private firm to set up a 18MW solar-based power plant in Mymensingh.

The total capacity of the three plants is 1087.34MW of which the first one is of 522MW capacity, to be set up at Mawa in Munshiganj, while the capacity of each of the second and third plants is 282.67 MW.

One of the 282.67MW plants will be built in Chittagong and Khulna.

PDB Secretary Md Abdul Aziz, Orion Group Managing Director Salman Obaidul Karim and Solarium Power Managing Director Nazmul Abedin inked the deals on behalf of their respective sides.

Prime Minister’s energy adviser Tawfiq-e-Elahi Chowdhury, State Minister for power and energy Enamul Haque, Power Secretary Abul Kalam Azad and PDB Chairman ASM Alamgir Kabir and senior officials of the PDB, Orion and Solarium were present at the function at Bidduyt Bhaban in the capital.

Orion Group will implement the projects on build-own-operate (BOO) basis and the PDB will purchase electricity from the plants for 22 years.

As per the contract, the PDB will buy per kilowatt hour (each unit) electricity at 5.8497 US cents (Tk 4.095) from 522 MW Mawa plant while tariff for the Chittagong plant was set at 5.4214 cents (Tk 3.795) and tariff for Khulna plant at 5.4071 US cents (Tk 3.785).

Orion will implement he Mawa project within the next 45 months while it will take 36 months for each of the Chittagong and Khulna projects. Imported coal will be used in the project for power generation. The local business house has already procured lands at separate locations to set up the power plants.

“We’ve already procured required lands for our project. Our project will be initially run by imported coal for which we’ve managed dedicated coal mines in Indonesia,” said Obaidul Karim adding that the three projects will require an investment of $1.4 billion.

Local firm Solarium Power Ltd will set up the 18MW solar plant at a location in Mymensingh from which the PDB will buy electricity at Tk 5.50 per kilowatt hour for the next 15 years. This will be the first large solar power plant in private sector.

Tawfiq-e-Elahi termed the deal signing with private sector forms for coal-fired power plants and also for solar plant a milestone in Bangladesh history.

He said neighbouring India has yet not been able to sign contract for setting up any power plant in private sector. “But we’ve been able to sign such deals.”

Standard Chartered official ‘bullish’ on B’desh

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Standard Chartered official ‘bullish’ on B’desh
Bank seeking to mobilise funds for power sector
A Z M Anas

Bangladesh will see a surge in capital from advanced and emerging economies in the next five years, lured by cheaper stocks and tax incentives, a senior Standard Chartered Bank official says.

Harinder Singh, a managing director of the UK-based but emerging markets-focused bank, has said institutional investors, mutual funds, private equity firms, and wealth management groups from the Organisation for Economic Cooperation and Development (OECD) countries would come to Bangladesh in droves to invest.

OECD is a 34-member bloc of the world’s most advanced and emerging economies.

“This is a time of great opportunity,” said the Mumbai-based banker, even if he is aware of the risks associated with euro-zone crisis and a stuttering global recovery. He has no estimates of the potential flow.

His comments came as the average stock price-to-earnings ratio in the capital market hovered below 15 while the government waived a 10 per cent tax on income from mutual funds.

Although Dhaka Stock Exchange, the premier bourse, is one of the worst-performers in Asia this year, its market capitalisation is still as high as $33 billion.

Cheaper stocks have provided rooms for bargain hunting by foreign portfolio investors whose participation in Bangladesh’s equity market is negligible.

Mr Singh said his bank is also seeking to mobilise funds for Bangladesh’s power sector, which requires an investment of US$9.0 billion to produce 9,426 megawatts of electricity by 2015.

“We’re trying to raise Bangladesh’s profile abroad. Investments will be flowing in power and telecommunications sectors,” he said.

Foreign direct investment climbed by 30 per cent in 2010 to US$913.32 million, up from $700.16 million a year ago, the United Nations Conference Trade and Development (UNCTAD) data showed.

Mr. Singh, whose career with Standard Chartered spans as long as 17 years, said international capital should be harnessed in a way, making sure that it adds maximum value and trickles in useful and productive sectors.

Although liquidity crisis has engulfed the local banking industry, he said Bangladesh operations of Standard Chartered remain unscathed, because “we’re disciplined in balance sheets.”

However, the bank’s profit after tax plunged by Tk 350 million to Tk 4.5 billion in 2010, down from Tk 4.8 billion the year before, according to figures available with the bank.

Mr Singh, a business graduate of Delhi University, said positive demographics and domestic demand would propel Bangladesh’s growth in the coming years.

“We’re bullish about (Bangladesh’s) prospects,” he said, insisting that young people who make up two-thirds of Bangladesh’s 160 million population would prop up growth.

The country’s internal demand is driven mainly by its 3.0 million-odd middle class with considerable spending habit, say economists.

Despite the debt crisis in the euro-zone and US economic woes, the Bangladesh economy expanded at 6.6 per cent in the last financial year, its highest since the early 1970s.

“Lots of countries wouldn’t have growth at all during the time,” Mr Singh said.

He didn’t say whether it was a “right step” to allow more private banks to operate in the country — a move that has already sparked nationwide controversy.

But he said market forces would determine whether it is good or bad to issue new licenses for private lenders in what is otherwise Bangladesh’s crowded banking sector.

Excluding state banks, a total of 39 private banks are operating in Bangladesh and the central bank is now reviewing applications of 37 sponsors who are seeking new banking licenses.

Mr Singh noted that attracting clients would be the biggest hurdle for new banks, making it challenging for them to stay afloat.

The depreciation of Bangladesh Taka doesn’t worry the banking professional who said India’s Rupee declined by 16 per cent this year — the worst performing currency in Asia in 2011.

Asked whether his bank planned to be listed in Bangladesh’s stock markets in near future, Mr Singh said he is not aware of any such move.

“Bangladesh is a key market for us. We feel that we’re a local bank and we bring in cross-border expertise,” he said. “We’re here for 107 years and not focused on short-term profitability.”

Indian denim takes Bangladesh route to reach China

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Indian denim takes Bangladesh route to reach China
Author / Source : STAFF REPORTER

DHAKA, DEC 19: Indian denim fabric is reaching China, getting stitched on the route in Bangladesh amidst a plethora of reasons like depreciation of Indian rupee, appreciation of the Chinese currency, rising cost of labour in China, slowdown in Western economies, and less cost of labour and power in Bangladesh. Since June, Indian rupee has witnessed a depreciation of around 20 per cent against the US dollar. During the same period, the Chinese currency Yuan has appreciated by 4 per cent against the US dollar.

As a result, making jeans in China has become costlier as China imports cotton from India to make its denim. Moreover, there is an increase in wages in China. Also, there is a rise in domestic consumption.

Owing to all these factors, the Chinese are finding it more economical to buy Indian denim compared to their domestically produced denim. Hence, China has started importing denim from India for its own domestic use as well as for export to other countries.

Explaining the demand situation for denim, Vikram Oza, director-finance, Jindal Worldwide, an Ahmedabad-based denim manufacturer, explains, “The overall demand from the US and Eurozone is declining due to slowdown in their economies. On the other hand, the denim market has not penetrated to the extent required in other economies having large population like China and India.”

“In the US, the per capita consumption of denim is around 8 pairs per annum. In comparison, it is 0.3 in India and less than 1 in China. So, there is a demand in India and China to come up to the average level of 2 or 2.5 pairs per person,” he adds.

Briefing about the route taken by Indian denim to reach China, he informs, “Labour cost in China is rising these days. So, their route is through Bangladesh and Vietnam, more particularly Bangladesh.”

He said, the fabric produced in India is first going to Bangladesh. There the minimum wage is around Rs 2,250 per month, whereas in India it is Rs 7,000 per month. Next factor is the power costs. Power cost in India is Rs 5.50 per unit while it is around Rs 3.50 per unit in Bangladesh. The slowdown in the European market is also helping diversion to China because of the growing demand for denim there, he added.

Deals inked to produce 1,105 MW from coal, solar

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Deals inked to produce 1,105 MW from coal, solar

Star Online Report

The government on Tuesday signed four agreements with Orion Group and Solarium Power Ltd for producing 1,105 megawatt of electricity from coal and solar system as part of its efforts to diversify energy sources.

Power Development Board (PDB) inked separate deals with Orion Group to set up three coal-based power plants at a ceremony at the Bidyut Bhaban in the city.

The plants will be set up at Mawa in Munshiganj with a capacity of 522 MW, Chittagong with a capacity of 282.67 MW and Khulna 282.67 MW.

Orion Group will invest US$ 1.4 billion to set up the load-based plants, said its Chairman Obaidul Karim.

PDB signed the fourth deal with Solarium Power Ltd, which will set up a thermal solar system in Mymensingh with a capacity of 18 MW, the country’s first renewable energy-based power plant with a capacity over one megawatt.

The plant will cost Tk 235 crore, Nazmul Abedin, managing director of Solarium, said at the signing ceremony.

The coal-based power plants will be ready between 36 and 45 months while Solarium plans to start commercial operation in two years.

50-MW power plant in Natore soon

http://www.theindependentbd.com/business/others/85509-50-mw-power-plant-in-natore-soon.html

50-MW power plant in Natore soon
Author / Source : BSS

NATORE, Dec 19: The government has decided to set up a 50-MW joint venture power plant at Barabhita here for the first time to meet the power demand of the district. The management of the plant- Raj Lanka Power Company- is expected to finish construction of the project at the end of 2012.

The company signed an agreement on November 27 to this effect with Bangladesh Power Development Board to build the power plant by using the technology of Wartcela Company of Finland.

According to the agreement, the plant will supply 50-MW power to the national grid in the next 15 years after completion of the plant.Prime Minister Sheikh Hasina laid the foundation stone of the plant on December 11 during her Natore tour.

Economy gains stronger base

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40 Years of Independence
Economy gains stronger base
Speakers at a seminar
Staff Correspondent

Speakers at a seminar yesterday said the economy of Bangladesh has gained a strong base in 40 years of independence.

They said the country has captured a major stake of the global readymade garments (RMG) market along with achieving self sufficiency in food.

The Industries Ministry organised the seminar on “Forty years of independence: achievement and expectation of the industry” at the BCIC auditorium in the city.

Industries minister Dilip Barua addressed the seminar as chief guest with industries secretary KM Masud Siddique in the chair. Professor Mostafa Nur Islam was the prime discussant at the seminar.

While addressing the seminar, Dilip Barua said Bangladesh is getting a large amount of remittances sent by its 7.5 million expatriates staying in different countries across the world.

“The remittance worth $12 billion sent by the expatriates made our economy stronger,” he said, pointing out that it would never have been possible if the country failed to gain independence from the then West Pakistan.

He expected that the industrial sector will gain double digit growth if the ongoing industrial policy keeps continuing.

The other speakers, however, said the country could not properly utilise its prospects for the development of economy even after 40 years of independence.

They opined Bangladesh can turn into a middle-income country by 2021 through utilising the creativity and skills of its huge population.

BB set to implement Basel-III from 2014

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BB set to implement Basel-III from 2014
Siddique Islam

Bangladesh has started preparations to implement the Basel-III framework for bank companies from 2014 in line with the global standard, a top central bank official said Monday.

“We’ve started the ground work to implement the Basel-III for bank companies by 2014,” Executive Director of the Bangladesh Bank (BB) SK Sur Chowdhury told the FE.

The Basel-III is a new global regulatory standard on bank capital adequacy and liquidity agreed upon by the members of the Basel Committee on Banking Supervision.

The third of the Basel Accords was developed in response to the deficiencies in financial regulation revealed by the late-2000s financial crisis.

The Basel-III strengthens bank capital requirements and introduces new regulatory requirements on bank liquidity and bank leverage.

“Liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) are pros and cons of the Basel-III framework,” Mr Sur said, adding that the central bank is providing training to the commercial bankers about the LCR and NSFR.

The LCR is a new liquidity standard introduced by the Basel Committee to ensure that a bank maintain an adequate level of unencumbered, high-quality liquid assets that can be converted into cash to meet its liquidity needs for 30 calendar days.

The NSFR is a new standard introduced by the Basel Committee aiming to limit over-reliance on short-term wholesale funding assessment of liquidity risk across all on and off-balance sheet items.

As part of the preparations, the central bank has been organising a three-day-long training programme on liquidity risk management tools since Sunday. It will continue today (Tuesday), he added.

“We’re organising the training programme aiming to improve efficiency of the commercial bank officials about measuring, identifying and controlling of liquidity risks in line with the existing Basel-II and Basel-III frameworks,” Mr Sur noted.

He also said the central bank advises the bankers for taking necessary measures to submit liquidity profile reports in line with the BB’s prescribed formats.

Liquidity profile is a snapshot of a bank’s overall liquidity position in different time buckets.

“We need accurate liquidity profile reports for taking proper measures to keep the country’s money market stable,” the central banker said.

The training programme has been discussing implication of the credit-deposit ratio (CDR) to avoid liquidity risk.

The CDR is the proportion of loan-assets (investment-assets) created by the banks from the deposits received.

“Excessive credit growth, that is, when the credit growth is higher than the deposit growth, causes higher interest rates,” the BB said in a document, adding that this is simple, because banks are borrowing for a short term for credit expansion.

“When the payment is due they again borrow. But when most of the banks have the similar situation in their books, scarcity of fund arises which causes higher interest rates,” it noted.

Bangladesh is now implementing the Basel-II accord to consolidate capital base of the banks in line with the international standard.

It has been prepared on the basis of three pillars: minimum capital requirement, supervisory review process and market discipline.

Three types of risks – credit risk, market risk and operational risk – have to be considered under the minimum capital requirement.

Huawei sets IP training centre at BUET

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Huawei sets IP training centre at BUET

World’s leading telecom solution provider, Huawei Technologies, has set up an Internet Protocol (IP) training centre at Bangladesh University of Engineering and Technology (BUET) yesterday.

The centre was set with a view to create skill and efficient manpower in IP sector by providing high-quality training to the students and IP professionals.

Architect Yeafesh Osman, state minister for Science and Technology, inaugurated the training centre as chief guest. Rashed Khan Menon, MP, chairman of the Parliamentary Standing Committee on Education Ministry, Professor Dr. SM Nazrul Islam, Vice-Chancellor of BUET, Yang Zhaohui, political counselor, Embassy of China and Wonder Wangdexian, CEO, Huawei Bangladesh, were present.

Digital ICT Fair 2011 begins

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Digital ICT Fair 2011 begins

Hasan Mahmud, minister for environment and forests, inaugurates an eight-day information technology show -- Digital ICT Fair 2011 -- at Multiplan Computer City on Elephant Road in Dhaka yesterday.Photo: STAR

Star Business Report

An eight-day information technology exposition — Digital ICT Fair 2011 — kicked off in the capital yesterday.

Multiplan Centre Shop Owners Association is organising the show at Multiplan Computer City on Elephant Road.

According to the organisers, over 450 companies are taking part in the event where many gadgets, including laptops, digital camera, computer monitor, television card, pen drive, memory card, are showcased.

Hasan Mahmud, minister for environment and forests, inaugurated the fair where Mahboob Hossain, chief customer care officer of Citycell, was also present.

All the devices presented in the fair will be sold in special discounts, the organisers said. Citycell is the platinum sponsor of this event where ATN news is the electronic media partner.

Development cooperation accord with Germany inked

http://www.theindependentbd.com/business/finance/85505-development-cooperation-accord-with-germany-inked.html

Development cooperation accord with Germany inked
Author / Source : UNB

Dhaka, Dec 19:  Iqbql Mahmood, secretary, Economic Relations Division, Ministry of Finance and Holger Michael, ambassador of  Germany signed an agreement on Sunday between the two governments on projects as well as programmes of financial and technical cooperation. The agreement has an overall financial volume of approximately Tk 632 crore (60.8 million Euro). The funds will mainly be used for programmes and projects in the field of rural and urban governance, including infrastructure improvement measures, for the health sector and for projects to increase energy efficiency and the use of renewable energy.

In addition to these funds Germany has made available an amount of approximately Tk 182 crore (17.6 million Euro) in 2011 for projects to help conserve, maintain and rehabilitate ecosystems such as wetlands and in the field of biodiversity and protection of coastal forests.

“The long lasting friendly relations between Germany and Bangladesh, which have been underlined by the recent visit of the Federal German President to Bangladesh, form a strong foundation on which our development cooperation is built,” they observed.

The Ambassador stressed that Germany is determined to provide further assistance to Bangladesh; Bangladesh continues to be a priority partner country for development cooperation.

Cotton cultivation gains popularity in Magura

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Cotton cultivation gains popularity in Magura

MAGURA: A farmer in his cotton field at village Nanduali. — FE photo

Our Correspondent

MAGURA, Dec 19: Cotton cultivation is gaining popularity among the farmers of Magura.

District Cotton Development Board Magura said, a total of 400 hectares of land has been brought under cotton cultivation in the district this year with an output target of 800 tonnes. Last year the cultivation was in 250 hectares.

Minhazul Islam, a farmer of village Nanduali under Magura sadar upazila said, ‘Last year I cultivated cotton in 30 decimal land and I got 10 mound cotton and earned Tk 30 thousand. As I got a good profit, I have brought 3 bighas of land under cotton cultivation in the current season’.

Mofizul Islam, another farmer of village Barabari under Magura sadar upazila said, that he has brought 4 big has of land under cotton cultivation and he is expecting Tk 70 thousand from his output.

Alamgir Hossain Mridha, an official of District Cotton Development Board said, ‘We help the cotton farmers in procuring seeds, making land, nurturing of crop. If the weather is favourable a bumper production will be achieved in the current season’.

Mustard to be cultivated on 7,500 hectares in Joypurhat

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Mustard to be cultivated on 7,500 hectares in Joypurhat

JOYPURHUT, Dec 20 (BSS) – The Department of Agriculture Extension (DAE) has taken a plan to cultivate mustard on 7,500 hectares with a production target of 10,750 tonnes of mustard in the district, sources said.

DAE, Bangladesh Agriculture Development Corporation (BADC) and some NGOs are distributing quality mustard seeds among the farmers. The commercial banks are distributing agriculture loans to achieve the production target.

Of the total land, 2,000 hectares would be brought under mustard farming in Sadar upazila, 3,975 hectares in Panchbibi, 850 hectares in Khetlal, 225 hectares in Kalai and 450 hectares in Akkelpur upazila, the sources added.

Deputy Director of DAE Delbar Hossain told BSS that farmers have already started sowing mustard seeds on their lands after harvesting T-Aman and vegetables.

All necessary steps have been taken to boost the mustard production.