Bangladeshi company to invest US$ 7.17m in Dhaka EPZ

http://www.bssnews.net/newsDetails.php?cat=0&id=153584&date=2011-01-05
Bangladeshi company to invest US$ 7.17m in Dhaka EPZ
DHAKA, Jan 5 (BSS)- M/s Cassmark Fashion Limited will set up a Garment Industry in Dhaka Export Processing Zone.
This 100% Bangladeshi owned company will invest 7.671 million US Dollar in setting up their unit and will produce garments items. The company will also create employment opportunity for 1,897 Bangladeshi nationals.
An agreement to this effect was signed between Bangladesh Export Processing Zones Authority and M/S. Cassmark Fashion Limited in BEPZA Complex Dhaka yesterday.
Md Moyjuddin Ahmed, Member (Investment Promotion) of BEPZA and Ms Sabrina Islam, Managing Director of M/S. Cassmark Fashion Limited signed the agreement on behalf of their respective organizations.
Major General A T M Shahidul Islam, Executive Chairman, Abu Reza Khan, Member (Engineering), A K M Mahbubur Rahman, Member (Finance), Md Shawkat Nabi Secretary and other officials of BEPZA were present at the signing ceremony.

Exports rise 41pc

http://www.thedailystar.net/newDesign/news-details.php?nid=168895
Exports rise 41pc
Refayet Ullah Mirdha
High demand coupled with a recovery from global recession has pushed up six months’ exports.
During July-December of the current fiscal year, exports soared 41 percent, compared with the same period a year ago, according to the latest data released by the Export Promotion Bureau yesterday. In the first six months, Bangladesh shipped goods worth $10.26 billion.
In December alone, the country earned $1.99 billion.
The combined export growth of both knitwear and woven garment rose 42.09 percent in the period compared with the same period a year ago.
Bangladesh exported knitwear worth $4.31 billion in the six months, registering 43.39 percent growth. The country earned $3.63 billion in woven garment exports during the period, which means 40.79 percent growth.
Shipbuilding is another bright spot, as the sector fetched $18.02 million from exports of ocean-going vessels. The sector recorded 1,924 percent growth.
Monoj Kumar Roy, joint secretary (export) of the commerce ministry, said every sector showed a positive trend with the recovery from the financial meltdown.
China is losing its market for higher production costs and a shortage of workers in its garment sector. “This is part of the reason exports from Bangladesh went high,” Roy said.
Salim Osman, president of Bangladesh Knitwear Manufacturers and Exporters Association, said many orders have shifted from China to Bangladesh.
“Also, the export of garment products is increasing in some new destinations. As a result, we are getting more markets and more value,” he said.
Anwar-ul-Alam Chowdhury Parvez, former president of Bangladesh Garment Manufacturers and Exporters Association, said the increased price of per unit of apparel item also contributed to the higher growth.
Although the prices of raw materials such as cotton and yarn have gone up on the international market, buyers are paying high for the finished products, he said. “As a result, the overall growth was higher.”
“Such high growth will continue in future as the orders are shifting to Bangladesh from other competing countries,” Parvez added.
Saiful Islam, chairman of Western Marine Shipyard Ltd, a leading shipbuilder, said the export of ocean-going vessels went high, as the growth in the sector was almost zero before.
“My company exported two vessels recently, and from now, I can export one ship per two months as I have abundant orders.”

Rajshahi Jute Mills 2nd unit to be opened soon: Latif

http://newagebd.com/newspaper1/business/4002.html
Rajshahi Jute Mills 2nd unit to be opened soon: Latif
Bangladesh Sangbad Sangstha . Rajshahi
Textile and jute minister Abdul Latif Siddiqui has said the second unit of Rajshahi Jute Mills would open as early as possible.
In this regard, he asked the authorities concerned to complete the construction and other infrastructure development works of the unit so that it can go into operation very soon.
Minister Abdul Latif made the instruction while sharing views with management of the mill and others concerned.
Mayor of Rajshahi AHM Khairuzzaman Liton, chairman of BMDA Nurul Islam Thandu, secretary of textile and jute ministry Ashraful Mokbul and chairman of Bangladesh Jute Mills Corporation Tulshi Das Mitra also spoke on the occasion.
Latif Siddiqui underscored the need for making the jute mills more effective for adequate consumption of the raw jute together with boosting the employment generation.
He said the nation produces around 60 to 65 lakh bales of jute at present and the BJMC consume 30 per cent of the total production annually and called for enhancing the consumption to at least 50 per cent.
‘We have enormous prospect of market expansion of jute and jute goods globally and we are committed to materialise the prospect through proper utilisation of the existing resources,’ the minister asserted.
Earlier, he visited different sections of the first unit and the under-construction second unit and directed the officials concerned to expedite the production rate of the first unit.
Later, he visited the now-defunct Paksi Paper Mills at Ishwardi in Pabna and shared views with the officials concerned on the last leg of his three-day official visit in the region.

Vegetables output high in B’baria

http://www.thefinancialexpress-bd.com/more.php?news_id=122012&date=2011-01-06
Vegetables output high in B’baria

Our Correspondent
BRAHMANBARIA, Jan 5: Use of modern technology and quick compost has brought a breakthrough in production of seasonal vegetables in nine upazilas of the district, sources said.
According to the Department of Agriculture Extension (DAE), farmers are getting a huge production of vegetables in the current season.
The DAE officials said, favourable climate and use of quick-compost and high yielding variety (HYV) of seeds have made it possible.
A good number of educated and unemployed youths of the district have got involved in the cultivation process and reaping profits.
But the growers are deprived of making expected profit due to the absence of proper marketing channels.
Now, brinjal is being sold at Tk35 per kg, karola at Tk 30, green banana at Tk25 per four, borbati at Tk35 per kg, gourd at Tk26 to Tk32 per piece, papaya at Tk25 per kg, ladies finger at Tk30 per kg, chichinga at Tk 32, cucumber at Tk 20, jhinga at Tk30, pui shak at Tk 10 per kg, lal shak at Tk10 per kg and lemon at Tk 20 per four respectively.
When asked, DAE Deputy Director Md Mosarof Hossain said, “We have brought 3560 hectares of land in nine upazilas of the district under seasonal vegetable cultivation programme in the current season.”

Self-sufficiency in cement

http://www.thedailystar.net/newDesign/news-details.php?nid=168754
Heavy Industry
Self-sufficiency in cement

A truck loaded with raw materials for cement enters the Heidelberg Cement plant at Patenga in Chittagong (Bottom). Photo (Top-Bottom): Amran Hossain; Anurup Kanti Das

Sarwar A Chowdhury
It is hard to pinpoint where and when the uses of cement were first discovered, or who invented it. Some say it was in ancient Rome, where engineers first used concrete made from volcanic rock and ground brick or pottery. Now, in modern times, concrete is a composite construction material composed of cement and other materials.
Regardless of when the use of cement began, cement has become the major construction material for many centuries in the world. From housing to infrastructure, cement is a must.
Cement is a binder, a substance that sets and hardens independently, and can bind other materials together.
Many countries cannot produce enough cement to meet their internal demand, and they depend on imports. However, Bangladesh is self-sufficient in fulfilling local demand for cement. Even so, the installed production capacity is higher than local demand.
In Bangladesh, there are around 55 cement-manufacturing companies, most of which are in operations either on a large or small scale. A total of 34, including multinational cement manufacturers, are in commercial production.
The installed production capacity of the 34 cement factories is 1.85 crore tonnes a year, according to Bangladesh Cement Manufacturers Association (BCMA) data.
Cement consumption was 1.3 crore tonnes in 2009 and 1 crore tonnes in 2008. Consumption for 2010 has been estimated at 1.45 crore tonnes, the cement association data shows.
Dhaka and Chittagong account for nearly 65 percent of total consumption.
“We are self sufficient in cement production and meeting local demand. We don’t need to import cement, not even a single bag,” says Amirul Haque, managing director of Premier Cement.
“Bangladesh is over capacity. The entire industry and local demand is controlled and fulfilled by the Bangladeshi cement companies,” he says.
Some factors can manipulate the demand or consumption of cement to go up or down, as was seen in cement consumption in the last few years.
The cement sector experienced a downward trend, particularly in sales, in 2007-08 when the army-backed caretaker government was in power. The real estate sector was at a low ebb and no infrastructure development project was undertaken, leaving a negative impact on demand for cement.
But the cement industry regained momentum soon after an elected government took power in January 2009.
“Infrastructure, industrialisation, urbanisation and housing are the major factors that can have an impact on demand for cement,” says Mostafa Kamal, president of BCMA.
“We are seeing an ever-increasing growth in the cement sector, as the government looks seriously on some big infrastructure projects, such as flyover, airport, bridge and monorail, where cement will be a basic raw material,” he said.
There will be no problem in meeting the cement requirements to implement the infrastructure projects. “We are not only self sufficient in cement production, we also export to our neighbouring country, India,” says Kamal, also the owner of Fresh Cement.
In view of a bright future, many entrepreneurs are expanding their production capacities. “Currently, we have the capacity to produce 4,000 tonnes of cement a day, and we plan to add 4,000 tonnes of capacity this year and another 4,000 tonnes next year,” says Kamal.
As it is a heavy industry, huge investment is needed to set up a unit with backward and forward linkage facilities. It will cost around Tk 1,000 crore, if a unit has the capacity to produce 10,000 tonnes of cement a day with adequate backward and forward linkages.
The backward and forward linkages refer to the transportation of raw materials and shipment of finished products by a company’s own transportation chain, in which, ocean going vessels are included.
Haque of Premier Cement says cement is almost a seasonal product. Winter is the best season for construction. “Cement consumption rises to a peak in winter,” he says.
In the rainy season, construction works, especially on housing projects in rural and urban areas, go slow. “Every company cuts production in the rainy season,” Haque says.
With high demand for cement comes greater competition. It is a market for ‘maximum volume but minimum profit’, he says.
“Otherwise, one will be thrown out by competition.”
Although Bangladesh is self sufficient in cement production, it needs to import all the raw materials used in cement manufacturing. The main ingredients for cement include clinker, gypsum and fly ash, which are mainly imported from Thailand, Malaysia, Vietnam and China.
Bangladesh has surplus production capacity of cement, and with existing growth domestic demand can be met by local production in next 4 to 5 year, said Jasim Uddin Khandaker, vice-president of sales and marketing of Holcim.
“However, many companies are now going for expansion. Bangladesh will not face any problem meeting its local demand up to 2020,” he added.
Among local brands, Shah Cement, Meghna Cement, Crown Cement, Fresh Cement, Premier Cement and Seven Circle Cement are famous across the country.
The five multinational cement companies in operation are: Holcim, Heidelberg, Lafarge Surma, Cemex and Emirates.

1131 MW added to national grid in two years

http://www.bssnews.net/newsDetails.php?cat=0&id=153415&date=2011-01-04
1131 MW added to national grid in two years
DHAKA, Jan 04 (BSS) – The present government has added 1131 MW power to the national grid after taking charge on January 6, 2009.
According to the official source, another 1350 MW from the quick rental power plants will be added to the national grid by April 2011.
Since the generation of electricity is not enough to meet the demand, the authority is handling the situation through different measures including load management, energy saving and gas rationing programmes. However, the gap between supply and demand of power exist and it varies from 1300 MW to 2000 MW.
A senior official of Bangladesh Power Development Board (BPDB) said 500 to 700 MW power could not be produced due to gas shortage while some power plants always remain inoperative because of rehabilitation and maintenance work which reduces power generation and supply further.
“Therefore, we actually shed or manage the peak hours demand by shedding 300 MW during winter and 800 MW during summer season,” the official said.
Though the gap between demand and supply of power remains high, yet it is a significant success to add 1131 MW to national grid in two years, he added.
BPDB chairman ASM Alamgir Kabir told BSS that the government has the plan to produce 2087 MW power more by 2012 and another 2000 MW by 2013.
By 2014, another 1670 MW and by 2015 about 3050 MW will be added to the national grid, he said. As per its election pledge, the present government has the plan to add 9,426 MW power to the national grid by 2015.
“We produce 300 MW from the quick rental, however, we already signed agreements with different bidders to install quick rental, rental, small IPPs and peaking power plants that would come into operation within next few years,” he said.
The BPDB chairman said if Petrobnagla could supply adequate quantity of energy to run the power plants, then it would be possible to make country free from loadshedding by the end of 2013.

A sweet year for agriculture

http://www.thedailystar.net/newDesign/news-details.php?nid=168780
A sweet year for agriculture

The year 2010 was a good year for farmers in terms of rice prices, production and input supply. Photo: STAR

Sohel Parvez
With some small huts on both sides, the mud walkway enters into a ripening paddy field that makes a landscape of a vast golden carpet with irregular green spots.
The colourful fabric ends with greenery three-four kilometres down the horizon.
Nearby, a small river sits quiet and its water mirrors the flying white clouds, the standing paddy field.
The environment is silent. No human movement is seen as farmers have already returned home for a break. The crops’ mates — winter birds, kingfisher and heron — fly around for a prey.
It was the scene of a paddy field on the backyards of a village in Bagerhat district in late November last year.
Now the fresh-grown rice is on the way to farmers’ yards, mills, markets and finally to the kitchens of Bangladeshis, who take rice as staple food.
And farmers are celebrating the new rice that offers them a cushion as well as a good price incentive.
The hard work and investment the growers devoted in the fields pay off as rice prices are on the rise in the last one year, influenced by factors such as increase in demand for population growth, government procurement price and soaring prices of grains on the global market.
The price of coarse rice, now as low as Tk 35 per kilogram in the city, offers surplus growers a bounty. At the same time, it gives small growers and tenants, who have harvested a good crop, a cushion for a certain period.
The farmers, especially rice producers, are likely to enjoy the benefit of high prices in the next couple of months until a prospect of good harvest of boro appears on the horizon.
Growers now pass busy days to prepare the boro seedbeds, the biggest rice crop, hoping for another good year.
“The 2010 has been a better year for us as a whole in terms of rice price, production and input supply,” said ASM Sishnabi Mandal, a farmer in Dinajpur, with a happy voice over phone.
“Input such as fertiliser was available and production was fine due to favourable weather,” said Mandal who expects to bag 20 percent higher margin than a year earlier.
In 2010, the crop sector register-ed a rise in production, according to Bangladesh Bureau of Statistics.
Although questions on the validity of rice output estimate were raised by some quarters, the statistical agency found an increment in aman rice and boro crop production in 2009 and 2010 at 1.22 crore tonnes and 1.80 crore tonnes respectively.
Farmers received high prices for their produce such as jute, onion and most vegetables, except for losses in the wake of price fall amid an output glut of potato.
Shohel Khandoker, a medium farmer at Rangpur, said he had counted huge losses due to slump in potato prices. “But it is good that prices of rice are higher,” he said. “Overall, it was a good year for us.”
Although soaring prices of food bite low and fixed income group, for Khandoker and his peers, a good price of agricultural produce becomes an incentive to continue investing to augment income.
This year, an increased income from farming has allowed majority of 1.47 crore farm households in rural areas to spend more and take more active part in accelerating the pace of domestic consumption for the economy, growing by over 5 percent a year.
These all took place at a time when the government maintained policy support to boost agriculture, especially crop sector, to ensure the country’s self-sufficiency.
In 2010, the government raised the procurement prices of paddy and rice, which influence the market price. It also substantially reduced prices of non-urea fertilisers — TSP, MoP and DAP.
“It was a major development for agriculture. It has encouraged balanced use of fertiliser needed to maintain soil health,” said M Asaduzzaman, research director of Bangladesh Institute of Development Studies (BIDS).
Along with reduced price and increased availability of fertiliser, small and marginal farmers got subsidy support for diesel-based irrigation.
At the same time, the government still is focusing on increased disbursement of agricultural loan and surface water irrigation.
Efforts were seen to introduce new rice seed varieties that are climate-tolerant.
The government released four new rice seeds varieties for aman season last year — submergence tolerant BR-51, BR-52 and anti-saline but short duration varieties: BR-53 and BR-54.
But efforts to ensure faster extension of the newly released seeds were not noteworthy, insiders said.
Analysts however say initiatives taken to boost crop sector will leave a positive impact in the long run.
An increased investment in research and extension as well as move to retain agriculture scientists are needed to face such challenges, as the climate changes start affecting agriculture.
“Investment in research and extension remains low. A substantial increase in the areas is very important to develop and expand stress tolerant seeds to fight against any change in climate,” said Asaduzzaman.
Wais Kabir, executive chairman of Bangladesh Agricultural Research Council, said the year 2010 saw some ground preparations for developing the agriculture sector.
“What we saw that there were some attempts for overall development of agriculture. At the same time, the farm sector has passed through a tough scrutiny by the policymakers.”
“Tracking and monitoring are very important for agriculture. And an increase in surveillance will bring something good for the growers and the sector as a whole.”