Staff Correspondent, Bogra, The Daily Star, 13 May 2008

The government will import rice from neighbouring India despite bumper Boro production in the country this season, said Food and Disaster Management Adviser Dr AMM Shawkat Ali.

“If necessary, the government will procure rice beyond the target in this Boro season,” he told journalists while answering to questions at a meeting on Boro paddy procurement and food situation at Bogra Circuit House yesterday.

The adviser said though price of rice have increased in the international markets, Bangladesh is importing rice from India at $430 per metric tonnes as per contract.

He also said steps have been taken to use the godowns of Bangladesh Agricultural Development Corporation (BADC) to meet the space crisis in godowns.

Responding to the observations of rice mill owners and businessmen that they face problems for power cuts, the adviser said government has already taken measures to ensure uninterrupted power supply for rice mills.

Bogra Deputy Commissioner Humayun Kabir presided over the meeting while Divisional Commissioner Hafizur Rahman Bhuiyan, Bogra District Rice Mill Owners Association President Aminul Haque spoke.

Staff Correspondent, The Daily Star, 16 May 2008

The government will procure one lakh tonne of wheat from the international market at about Tk 32 per kilogram (kg) after failing to buy the grain locally as its market price is higher than the government-fixed price.

The advisory committee on purchase at a meeting yesterday approved the procurement proposal of the food ministry.

The government had earlier set a target of procuring 50,000 tonnes of wheat from local market this season fixing the purchase price at Tk 26 per kg.

Food ministry officials, however, said they could not buy any wheat from local market as the market price was higher than the price the government fixed for wheat procurement, adding that the deadline for the procurement is about to end.

The proposal placed by the food ministry said 70,000 tonnes of wheat would be imported at $ 446 per tonne (Tk 31.22 per kg) through the Chittagong port.

The rest will be imported at $456 per tonne (Tk 31.92 per kg) through the Mongla port.

Finance Adviser Mirza Azizul Islam, who presided over the meeting, told journalists that purchase of wheat at high prices from the international market will not have any adverse impact on the prices of the grain in local market, rather it would help boost wheat supply in the market.

“The market price will be high if the government itself fixes a high price for procurement,” he added.

The committee also approved another proposal placed by the communications ministry for appointing a consultant for its Dhaka-Chittagong Highway four-lane conversion project.

Pti, New York, The Daily Star, 24 May 2008

Poor countries, relying on food imports, are expected to spend 40 per cent more this year than the last year, the UN Food and Agriculture Organisation has said.

According to the latest Food Outlook, a biannual publication by the FAO focusing on developments affecting global food and feed markets, this year’s food import bill for the Low Income Food Deficit Countries is forecast to reach $ 169 billion.

Characterising this as a ‘worrying development’ the FAO noted that by the end of this year imports could cost four times as much as they did in 2000.

“Food is no longer the cheap commodity that it once was,” said the agency’s Assistant Director-General Hafez Ghanem, stressing that soaring food prices are likely exacerbate the food deprivation suffered by 854 million people.

“We are facing the risk that the number of hungry will increase by many more millions of people,” Ghanem said.

Although the global production outlook is favourable, this is unlikely to translate into the decline of many agriculture commodities because of the need to replenish stocks and rising utilization.

It predicts record cereal production this year but says tight markets will result in continued price volatility.

International prices of most agricultural commodities, the Food Outlook report says, have started to decline, but they are unlikely to return to the low price levels of previous years.

The food price index has remained stable since February 2008, but the average of the first four months of 2008 is still 53 per cent higher when compared to the same period a year ago.

Despite a favourable global production, the expected price decline in many basic agricultural commodities during the new 2008-09 season is likely to be limited, because of the need to replenish stocks and an increase in utilisation. Due to rising utilisation, more than one good season is required to replenish stocks and reduce price volatility, report adds.

The FAO’s latest forecast for world cereal production in 2008 points to a record output, now at nearly 2192 million tonnes, including milled rice, up 3.8 per cent from 2007.

Among major cereals, the tight wheat supply is likely to improve most, given the prospects for better harvests in 2008.

Despite record production levels in several crops, tight markets will probably lead to continued price volatility during the season.

Heads of state and government will address the problem of high food prices and the challenges of climate change, bio-energy and food security at the upcoming three-day summit in Rome beginning on June 3.

The rise in international prices of oilseeds and oilseed products, it says, has accelerated in 2007-08, with values climbing to new record levels in March 2008.

World markets have tightened considerably as reduced supply growth for oils and a drop in meal supplies are coinciding with further expansion in demand.

First forecasts for the 2008-09 season point towards a strong recovery in global oilseed production, and the resulting oil and meal output should be sufficient to meet global demand, the FAO report adds.

Regarding sugar, it says, generally favourable growing conditions led to a record world production in 2007-08 and although world sugar consumption is foreseen to increase at a sustained rate, it will not be enough to absorb an expected second consecutive global supply surplus.

International sugar prices are likely to remain under downward pressure, it predicts.

Global meat output, the agency says, is expected to grow in 2008 despite high feed prices. Strong economic growth is expected to sustain steadfast consumption in many developing countries.

Global milk production, which is responding to the past year’s high milk product prices, is forecast to grow strongly in 2008. However, it says there is uncertainty as to where dairy markets will head.

Global trade in milk products is anticipated to fall again in 2008 mainly because of reduced exportable supplies.

Food Outlook forecasts that aquaculture production growth will continue this year with the historic milestone of reaching the same level as the expected capture fisheries in 2008. Prices for wild species from capture fisheries are moving upwards strongly but the price increase for farmed species are expected to be more moderate.

Worldwide potato production could expand over the next decade between 2 and 3 per cent annually with developing countries, especially those situated in Sub-Saharan Africa, being the main engine of growth.

China, the world’s biggest potato producer, is reviewing proposals for the potato to become one of the country’s major food crops, while India plans to double its output in the next five to 10 years, it adds.

Rejaul Karim Byron, The Daily Star, 20 May 2008

The government will import five lakh tonnes of fertiliser from the United Arab Emirates (UAE), Saudi Arabia and Qatar under state arrangement to ease fertiliser crisis and boost rice production in the next fiscal year.

A high-level committee led by the industries secretary has already held talks with the authorities concerned paying visit to the three countries.

The proposal for importing urea may be placed before the Advisory Committee on Economic Affairs today.

The three countries have already sent draft contract letters to Bangladesh authorities following discussions between the committee and the authorities concerned.

Qatar Fertiliser Company, QAFCO, has already informed Bangladesh that it can export two lakh tonnes of urea as per the proposal prepared by the industries ministry. Qatar has also expressed its interest to export more urea, if necessary.

The UAE in principle has also agreed to export 80,000 to 1 lakh tonne of urea while Saudi Arabia has consented to export one lakh tonne.

Industries ministry officials said the government would set an import target of five lakh tonnes of urea while signing the final agreement.

“The fertiliser prices are going up in the international market. Urea was sold at $769 to $784 a tonne last month, while it was $408 last year. Therefore, the industries ministry asked the government to make a quick decision on fertiliser import,” said a ministry official.

The three countries have asked Bangladesh to inform them of its decision quickly, he said, adding that otherwise they might export the fertiliser to other countries.

The industries ministry in its proposal said although the Public Procurement Regulations-2003 will be violated through the import of fertiliser at the state-level, it is important to approve the proposal considering the government’s high priority on agriculture and food crisis in the country.

Chief Adviser Dr Fakhruddin Ahmed in February instructed the industries ministry to make necessary preparation for dealing with any possible fertiliser crisis in the country, sources in the industries ministry said.

Following the chief adviser’s instructions, an inter-ministerial meeting in April this year set the demand for urea at 28.5 lakh tonnes for the next fiscal year.

Of this, Bangladesh Chemical Industries Corporation (BCIC) will produce 17 lakh tonnes of urea, while the government will purchase five lakh tonnes from Karnaphuli Fertiliser Company and import seven lakh tonnes.

Staff Correspondent, The Daily Star, 21 May 2008

The government yesterday exempted from the Public Procurement Regulations fertiliser import from three countries for direct import under a state-to-state arrangement to ease fertiliser crisis and boost rice production in the next fiscal year.

“Nowadays it has become very difficult to purchase fertiliser and our last year’s experience is that we did not even get response from traders after floating tenders,” Finance Adviser Mirza Azizul Islam said.

“That is why, we have initiated the process to import fertiliser under the state-to-state arrangement,” he told reporters after a meeting of the advisory committee on economic affairs.

Following the advisory committee’s consent, the industries ministry will begin the process to import 5 lakh tonnes of fertiliser from the United Arab Emirates (UAE), Saudi Arabia and Qatar without floating international tenders.

The Qatar Fertiliser Company has already informed Bangladesh that it can export 2 lakh tonnes of urea as per the proposal of the industries ministry. Qatar has also expressed interest to export more urea, if necessary.

The UAE has also agreed in principle to export 80,000 to 1 lakh tonnes of urea while Saudi Arabia has consented to export 1 lakh tonne.

Industries ministry officials said the government would set an import target of 5 lakh tonnes of urea while signing the final agreement.

An inter-ministerial meeting last month set the urea demand for the next fiscal year at 28.5 lakh tonnes.

Of this, Bangladesh Chemical Industries Corporation (BCIC) will produce 17 lakh tonnes while the government will purchase 5 lakh tonnes from the Karnaphuli Fertiliser Company and import 6.5 lakh tonnes.

The Financial Express, 10 November 2007

Imports increased by about 17 per cent to US$ 5,930 million during the first four months of the current fiscal year (FY) comparing that of the same period in the last FY. Letters of credit (L/Cs) opened during the July-October period for imports also increased by more than 20 per cent to $6,626 million, according to provisional figures released by Bangladesh Bank Thursday. In the month of October last, imports worth $1,439 million already entered into the country while goods and commodities worth $1,492 million remained in the pipeline. Rice worth $51 million, wheat $63 million, milk food $11 million, edible oil $76 million, pulses $32 million and onion $13 million were already imported while an increased amount of these items remained in the import pipeline. — UNB