Leather exports see recovery after recession

http://www.theindependentbd.com/business/finance/29117-leather-exports-see-recovery-after-recession.html
Leather exports see recovery after recession
AKRAM HOSSAIN
Dhaka, Jan 14: The country’s leather sector is moving swiftly to overcome the loss of sales caused by the global financial recession, taking advantage of surging international demand for leather and leather goods. The latest data published on the website of Export Promotion Bureau (EPB) showed that the country’s leather export earnings rose to US$ 128.72 million in the first half of the current fiscal year 2010-11 from $ 98.06 million in the corresponding period of the previous year—an increase of 31.35 per cent.
The EPB data revealed that the leather export target for the July-December 2010 period  was fixed at $ 139.33 million but leather exporters could ship goods worth only $ 128.27 million, which was 7.62 per cent lower than the target for that period.
An analysis of the EPB data showed that the country’s leather product export earning was behind target mainly owing to lower earnings from finished leather exports.
According to EPB data, total export earning of the leather products was $ 25.34 million in July-Dec, 2010 against the target for the corresponding period of $ 16.53 million,  or 53.30 per cent higher than the target.
Exports of leather product were 171.31 per cent higher than earnings of the same period of the previous year as the export earnings for that period (July-Dec) was $ 9.34 million.
Md. Sahin Ahmed, Chairman of Bangladesh Tanners Association, told The Independent that the country’s export earning of finished leather saw ups and downs in the past few years but earnings were expected to increase from now on mainly due to increasing global demand for raw hides and skins.
Sahin Ahmed expressed the hope that the finished leather exporters could achieve the export target of $ 293.94 million for finished leather in the fiscal year 2010-11, as the supply of hides and skins was good enough during the recent Eid-ul-Azha.
Four months months ago, when cattle in the whole country was affected by the anthrax scare, tanners were concerned over supply of hides and skins as the number of slaughtered animals was meager during that time, he said.
These worries ended as supply of hides and skins after the recent Eid-ul-Azha shot up, he added.
Export earning from leather products was lower than export earnings from finished leather due to the lack of technical knowledge, poor products and skilled workforce, he said.
“Many investors would invest in Bangladesh to set up modern leather product manufacturing company if bank loan with low interest rate, smooth supply of gas and electricity side by side establishment of training institutions ensured,” said an official of Bangladesh Finished Leather and Leather goods and Footwear Exporters Association (BFLLFEA).
To make quality leather product we need modern technology and trained workforce which facilitate to increase the export earnings of Bangladesh, the official of BFLLFEA said.
Despite of having a college of leather technology in Bangladesh, we could not get sufficient number of skilled workforces for this sector due to the shortage of necessary teachers in that college, the official said.
“If we get expert workers for both leather and leather product industry, country’s export earnings of these sectors would tremendously increase,” said the official.

Mobile user numbers grow 31pc

http://www.thedailystar.net/newDesign/news-details.php?nid=169957
Mobile user numbers grow 31pc
Star Business Report
The number of mobile subscribers in Bangladesh rose by nearly 31 percent last year to 6.86 crore despite high taxes on new connections, according to Bangladesh Telecommunication Regulatory Commission (BTRC).
This is the highest ever increase in the growing mobile sector since the state-run BTRC started to disclose figures of customers nearly four years ago.
Last year, six mobile operators — one state-run and five private ones — altogether sold 1.621 crore new connections, 30.91 percent up compared to 2009, according to the regulator.
In 2009, the number of active subscribers grew by 17.45 percent and 29.88 percent in the year before.
Grameenphone, jointly owned by Telenor and Grameen Telecom, has retained the top position, adding 67 lakh users to take the total tally to 2.997 crore.
Second-placed Banglalink also made big stride, as it sold 56.5 lakh new connections. The number of its clients now stands at 1.9 crore.
Re-branded Robi, owned by Axiata (Bangladesh), a joint venture between Axiata Group Berhad, Malaysia, and NTT DOCOMO, Japan, added 30.7 lakh customers to end the year at third place with 1.236 crore users in total.

Govt to get into import gear

http://www.thedailystar.net/newDesign/news-details.php?nid=170020
Food Stocks
Govt to get into import gear
Staff Correspondent
In a bid to boost the food stocks and make the local commodity market stable, the government yesterday disclosed its mega food import strategies.
According to its decision, the government will import nine lakh tonnes of additional rice to increase the stock to 12 lakh tonnes. The authorities previously targeted importing three lakh tonnes of rice for 2010-11 fiscal year.
Like the staple food, the government will import an additional 2.50 lakh tonnes of wheat from its previous target of 7.50 lakh tonnes for the current fiscal year.
Such quick move is necessary because the prices of basic commodities have soared recently and Bangladesh wants to build her stock to tackle any foreseeable crisis, observed ministers.
It will import two lakh tonnes of sugar through the state-owned Trading Corporation of Bangladesh (TCB), Commerce Minister Faruk Khan told the journalists at a press briefing at his secretariat office after a coordination meeting.
The commerce minister held the emergency coordination meeting on ‘purchasing food grains and basic commodities from the international market’ with Food and Disaster Management Minister Abdur Razzaque.
Two lakh tonnes of crude soybean and palm oil and 20,000 tonnes of grams (chick peas) will also be procured from the international market, added Faruk.
“Commerce ministry has asked for Tk 1000 crore from the government to strengthen the TCB, so that it can import the essentials to tackle the situation,” stated the minister.
The TCB will also import 10,000 tonnes of lentil to add to a stock of 25,000 tonnes, said Faruk adding, these are the government’s efforts beside the private sector’s continued imports.
“We are very worried with the prices and stocks of food items in the international market. This is why we are importing the food items to boost the stock and bring price stability in the local market,” mentioned the minister.
Abdur Razzaque said prices of rice in the local market have gone higher even in the full season of harvest because the mill owners stockpiled it for selling at higher prices in near future.
“I think the prices of rice and wheat are comparatively higher. We are making efforts considering the purchasing capacity of poor people,” said the minister.
“We are not purchasing from the internal market because it is unable to supply such a huge quantity of food grains.”
At present there is a stock of 8.22 lakh tonnes of rice and wheat in the government’s warehouses, he added.
Six lakh tonnes of rice and five lakh tonnes of wheat will arrive by next April because the letters of credit (LCs) have already been opened to this end, mentioned Razzaque.
“On Sunday, we have signed agreement with the Vietnamese government to import 2.50 lakh tonnes of rice. I hope the entire quantity will arrive at the end of February.”
The country will require 11,36,000 tonnes in rice and wheat by next April, he said adding, since the boro paddy will come by May, 7,86,000 tonnes of food grains will remain surplus in the government warehouses.
Replying to queries, Razzaque said a total of 3,80,000 tonnes of rice has already been imported and LCs for six lakh tonnes more have been opened up.
“We will import the remaining 2.50 lakh tonnes of rice mainly from Thailand and Pakistan.”
“We are in talks for importing three lakh tonnes of rice from India. If India does not agree we will not face problem as we have options to import the quantity from Thailand and Pakistan,” he said.

Home textiles make a comeback

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Ready Made Garments
Home textiles make a comeback
Refayet Ullah Mirdha
The export of home textiles is on the rebound with the western world making a recovery from the global financial recession.
Manufacturers are expecting hefty profits as orders from international buyers soared with the changed economic situation.
Recovery came with a bang when the sector earned $296.01 million in July-December, registering a 77.75 percent growth from the same time last year.
The home textile export target fixed for fiscal 2010-11 is $563.50 million. Earnings amounted to $402.49 million in the year before.
Industry insiders said even in July of the current fiscal year, the export of the item witnessed a decline of 10 percent for an economic dip in the western world.
But in recent months, home textile exports surged, industry insiders said.
Nurul Afsar, company secretary to Noman Group, one of the largest home textile makers in Bangladesh, said demand for home textiles in the West increased significantly with recovery from recession.
“We are receiving plenty of orders from international buyers. But, prices of the item are still low even after the prices of raw materials have gone up worldwide,” Afsar said.
Noman Group exports goods worth more than $15 million a month, but the profit margin is narrow nowadays, Afsar said.
IKEA of Sweden, Heritage of Canada, Jionmax of Germany, Asda of UK and Carrefour of France are the group’s major buyers, he said.
A senior official of IKEA said the export of home textiles increased mainly because of an increase in the value and volume of products.
“The price of home textiles increased by 30-40 percent over the last few months because of a hike in the prices of raw materials,” he said, requesting anonymity.
Moreover, international buyers are shifting to Bangladesh from China and Pakistan, the two major destinations for home textiles, because of the price hike over high production costs.
He said the devastating floods in Pakistan last year damaged the cotton crop as well as the industry. “As a result, buyers are shifting to Bangladesh to meet the growing demand for the item in the western world,” he added.
According to Bangladesh Textile Mills Association, more than 469.7 million metres of home textiles are now produced a year.

UK-China company to invest $2m in Mongla EPZ

http://www.theindependentbd.com/business/others/28452-uk-china-company-to-invest-2m-in-mongla-epz.html
UK-China company to invest $2m in Mongla EPZ
UNB
Dhaka, Jan 10: A UK-China based company will invest US$ 2 million in Mongla Export Processing Zone (MEPZ).
Mongla Knitwears (Pvt) Limited, a UK-China company, will set up a Knit Garments and Sweater Manufacturing Industries in the MEPZ. The companies will also create employment opportunity for 2047 workers including 30 foreign nationals, a BEPZA press release said. The Bangladesh Export Processing Zones Authority (BEPZA) and M/s.  Mongla Knitwears (Pvt) Limited signed an aggrementto this effect at BEPZA Complex in the city on Monday.
M Moyjuddin Ahmed, member (Investment Promotion) of BEPZA and Che Chit Meng, general manager of M/s. Mongla Knitwears (Pvt) Limited signed the agreement on behalf of their respective organizations.

Rangpur Dairy proving a resounding success

http://www.thefinancialexpress-bd.com/more.php?news_id=122513&date=2011-01-11
Rangpur Dairy proving a resounding success

Fresh Milk from RD Milk. Source: http://www.rdmilk.org/

Our Correspondent
RANGPUR, Jan 10: The Rangpur Dairy (RD) Milk processing factory at Boldipukur in Mithapukur Upazila of the district has provided solvency to hundreds of monga-hit poor people in Rangpur.
These poor people are now rearing cows at home and selling milk to factory, first ever small private industry set up in the district after the commissioning of Jamuna Bridge.
Rangpur Dairy Milk undertook a laudable step earlier, to support the poor providing cows on easy terms to produce milk at home so that they might be benefited financially.
RD Milk Manager Ashraful Alam said, “We provided 425 cows among 375 families of Salaipur and Muradpur under Mithapukur Upazila.
He said, “The Company not only aims to do business but also wants to create a financially sound community in the process.”
He said, “RD Milk has not donated the cows to the beneficiaries free of cost. They have to pay the purchase rate of the cows in exchange of supplying milk to the factory for a certain period. When the prices of the cows are completely realised, the authority would transfer ownership of the animals to them.” he said.
Motin Miah at Muradpur in Mithapukur Upazila who received two cows from RD Milk said that he paid the price of the cow to the company. He is now milking 30 litres out of which earning Tk 750 a day.
RD Milk Managing Director Foqruzzaman said, the poor people of Rangpur as well as dairy farmers in the district are getting benefit from RD. He said the dairy farmers in Rangpur who were in utter frustration and were about to close their farms due to frequent losses even two years back are now getting profit by selling milk to RD Milk.
RD Milk has now been producing full cream milk through Ultra High Temperature (UHT) method. Only three companies in the country were producing full cream milk through UHT method. The companies include Pran, Akiz and RD milk.
“We are now supplying the milk products to Dhaka and other parts of the country including the northern districts. At present, about 15000 litres of milk are being processed a day in the industry”.
Foqruzzaman told The Financial Express, “We have a plan to turn RD Milk as one of the biggest milk processing industry of the country so that about 30,000 dairy farmers of Rangpur and its adjoining districts may get benefit.”
He said the authority has completed preparation to produce RD Butter, RD Tea, and RD Sweets. He however expressed his dissatisfaction at the absence of gas supply through pipeline and adequate electricity in Rangpur.
The production cost will be reduced at least 50 percent if there is uninterrupted gas supply. Power shortage also often hampers production resulting in loss to the company, he added.
Regarding prospect of RD Milk, FBCCI Vice-president and former President of Rangpur Chamber of Commerce and Industry Mostafa Azad Choudhury said it is the first ever industry of its kind set up in Rangpur with the Equity Entrepreneur Fund (EEF) of Bangladesh Bank. He expressed optimism that RD Milk might help a lot in bringing socio-economic change in Rangpur.

Banks asked to lend money to dairy farms with bio-gas plant

http://newagebd.com/newspaper1/business/4547.html
Banks asked to lend money to dairy farms with bio-gas plant
Bangladesh Sangbad Sangstha . Pabna
Bangladesh Bank governor Atiur Rahman on Sunday urged the commercial banks to increase their credit flow for agriculture sector particularly for setting up commercial dairy farms with bio-gas plants in rural areas.
A coordinated dairy farm is not only environment-friendly, but also meets three basic demands of farmers- protein, fuel and fertiliser, he said.
The governor was addressing a function at Titli tala of Jagannathpur upazila while visiting an Agrani Bank financed bio-gas and hybrid baokul and guava cultivation project.
Bangladesh has enormous capacity of establishing around 40 lakh coordinated dairy farms with four cattle in each, he said referring to a recent survey.
He said the dairy farms can yearly produce 480 crore cubic metre bio-gas, 120 million tonnes of high quality organic fertiliser, 1,700 crore litre milk and one million tonnes of meat apart from creating job for around 1.2 crore skilled and non-skilled rural people.
‘So, it’s huge opportunity for commercial banks to pursue green business on integrated dairy farm and bio-gas plant,’ Atiur said adding that Bangladesh Bank has been trying to make the integrated dairy farm model popular among the people.
The governor said a small dairy farm with four cows and one bio-digester everyday can produce 17 litre milk, 100kg organic fertiliser and 100 cubic biogas.
Director (news) of Channel-I Shykh Siraj, managing director of Agrani Bank Syed Abdul Hamid, government officials and local elites spoke, among others, on the occasion.
Referring to the Bangladesh Bank’s Tk 200 crore re-financing scheme for solar power generation and waste management, the governor urged people to take the opportunity.
The governor lauded the Agrani Bank’s financing project for the bio-gas plant and hybrid baokul and guava cultivation in Pabna and said many commercial banks already invested their money for solar power generation.
He urged the commercial banks to invest more in such projects and said it’s very encouraging to see that the commercial banks are providing the farmers with credit for fruit cultivation.
‘Such initiative will help farmers for cultivating high value crops, making the country more green and contributing to country’s economy,’ said the governor.
The governor urged the commercial banks to give emphasis on ‘area approach’ and provide loan for cultivation of a crop that grows more in a particular area.