Foreign Trade - Bangladesh Business News

Thai rice exports fall in mid-August, productions up

BBN Desk — Wed, 05 Sep 2018 01:29:05 +0000

Bangkok, Thailand (BBN)- Rice exports from Thailand dropped in the third weeks of August, according to the USDA update.

Unofficial and preliminary rice exports excluding premium white and fragrant rice) for August 13-19, 2018, totaled 206,511 metric tons, down 47,201 metric tons from the previous week and down 1,828 metric tons from the four-week moving average of 208,339 metric tons.

Rice exports from January 1 – August 19, 2018 totaled 5,934,648 metric tons.

Despite the further strengthening of the Thai baht to 32.4 baht/U.S. $1.00 from 32.6 baht/U.S. $1.00 in the previous week, export prices of white rice remained unchanged from the previous week due to a lack of new inquiries.

Traders are still waiting for the sale of the remaining 267,418 metric tons of government rice stocks which will occur on August 29-30, 2018.

These retenders will consist of 245,077 metric tons of feed quality rice on August 29, 2018, and 22,341 metric tons of deteriorated rice on August 30, 2018.

Most of these rice stocks are 5.0 per cent grade white rice from the MY2011/12 - MY2012/13 pledging programs.

Meanwhile, MY2018/19 rice production is expected to increase to 21.2 million metric tons, up 4 percent from MY2017/18 due to expanded acreage and favorable weather conditions during the vegetative and reproductive growth stages.

In 2018, rice exports are expected to decline to 10.5 million metric tons, a 9.0 per cent reduction from the record 11.6 million metric tons exported in 2017 due to the limited availability of government food-quality rice stocks for sale in 2018 as the government finalized the sale of the remaining 43,725 metric tons of food quality rice stocks on June 6, 2018.

The government has approved three domestic support programs to assist rice farmers during the MY2018/19 harvest season.

BBN/SSR/AD

India to export onions to Pakistan via Bangladesh

BBN Desk — Wed, 09 Nov 2016 02:07:46 +0000

Mumbai, India (BBN)- In the backdrop of a ban by Pakistan on Indian yields, including onion and cotton, Maharashtra has decided to export the same to the West Bengal (WB) market.
The WB market is the biggest exporter of onion to Bangladesh and European countries, whereas Pakistan imports onions from Bangladesh. Farmers in the state thus hope to make up for their losses by exploiting the WB-Bangladesh-Pakistan route, the Asian Age reported.
Minister of state for agriculture Sadabhau Khot left on a six-day visit to WB and Assam, where he will meet Agriculture Produce Market Committee (Mandi) members.
“As WB is the biggest importer of onions from Maharashtra and exports it to Bangladesh, eastern countries and Europe, farmers from Maharashtra will be benefited if we tie up with new traders in WB and Assam,” said Mr Khot. He added that the government is looking to export Maharashtra onions to Pakistan via Bangladesh.
Maharashtra produced 67.67 lakh metric tonnes (MT) of onion during the 2015-16 season, which is 20 lakh MT more than the previous year. “More than 50 per cent of onion exports to WB are from Maharashtra and of this 50 per cent, Nashik contributes 80 per cent,” said Mr Khot. He added that due to a bumper season, the rate of onion has reduced in the local market and thus the reliance of farmers on the foreign export market has increased.
When asked whether the ban by Pakistan on the import of Indian cotton and onions will affect the domestic market, Mr Khot said, “Pakistan will purchase onions from Bangladesh. Our trade will not be affected even though Pakistan had banned imports from India. We have another route through Bangladesh.”
He added: “Assam and WB are not onion-producing states, but WB has a major port, through which most of the produce will reach all around the world.”
BBN/SSR/AD

BB governor urges Indian businesses to utilize Bangladesh for producing goods

BBN Desk — Fri, 05 Jun 2015 08:30:09 +0000

Dhaka, Bangladesh (BBN)- Bangladesh Bank (BB) Governor Dr. Atiur Rahman has urged Indian businesses to utilize Bangladesh as low cost manufacturing base to produce goods for local, Indian, and global markets, taking into account favored market access for exports from the country.
“India, our closest large neighbor is partnering with us in promoting trade and investment linkages, with much needed investments in railway and other communication infrastructure,” the central bank chief said while addressing at a seminar as principal discussant on Friday.
The seminar was on ‘India-Bangladesh Relation: Regional Prosperity and Amity,’ organized by the Rastrabiggan Samity.
BB Governor Dr. Rahman also said cooperation in this area has much further to expand and deepen, including in developing new Special Economic Zones (SEZs).
“With demographic dividend of large pool of low cost labor force, Bangladesh is now a fertile base for massive volumes of new investments in the areas of manufacturing, infrastructure, education and technology, the governor explained.
He also said: “Under the dynamic leadership of our Prime Minister Sheikh Hasina, Bangladesh is already a robustly growing developing economy steadily gaining in macroeconomic stability and external sector strength on transition path to a higher growth trajectory.”
Held at Senate Bhaban in Dhaka University, the seminar was attended by a large audience that included academics, experts and policy makers from various government and non-governmental organizations.
Regarding Indo-Bangla trade, the BB governor said Indian businesses can foster more extensive trade value chain linkages with Bangladeshi manufacturers, drawing from success example in the textiles trade sector.
“Deepening and widening of trade and economic cooperation in our region require major simplification and facilitation of customs clearance procedures in overland goods flows in the trade value chains, allowing cross-border movement of cargo laden vehicles. I look forward to the new regional transit agreement to be signed shortly as a key first step in this process,” Dr. Rahman noted.
Bangladesh's seaports, land ports and rail or road arteries need major expansion and modernization for handling increasing cargo volumes of regional transit trade traffic, according to the governor.
Dr. Rahman welcomed the India's vibrant IT, healthcare, education, training and other service sectors for taking advantage of Bangladesh's large pool of relatively low-cost youthful tech savvy manpower to set up product research/design/development, world class tertiary education, training and healthcare facilities in Bangladesh, on joint venture or wholly foreign owned basis.
“Deputing renowned Indian scholars in the faculty of Bangladesh's newly established Rabindra Biswabidyala, and in our technical universities will go a long way in reinforcing cultural bonds and in R&D cooperation between the two neighbors,” the governor observed.
Indian tour operators including travel spots of Bangladesh in itineraries of inbound tourists will likewise be mutually beneficial. “I am very heartened by the news of India deciding to facilitate visa procedure for visitors from Bangladesh.”
He also said Indian investments in development of sea port or land port and transport arteries in Bangladesh will greatly facilitate export and intra-regional trade flows.
“Bangladesh and India are already cooperating in strengthening Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) surveillance in our region; this will help promote a regional environment that both regional and external investors will feel more secure and safe,” the central bank governor informed the audience.
India-Bangladesh relationship born in mutual sacrifices from both countries in 1971 certainly deserves to be taken to new heights, the governor hoped.
Among others Dr. Gowher Rizvi, International Affairs Adviser to the Prime Minister, Iqbal Sobhan Chowdhury, Information Adviser to the Prime Minister, Professor Dr. A. A. M. S. Arefin Siddique, Vice Chancellor of the Dhaka University, Barrister Harun Ur Rashid, former Bangladesh Ambassador to the United Nations and Professor Dr. Gyasuddin Molla, President of Rashtrabiggan Samity, spoke on the occasion.

Philippines-Bangladesh launches business council to boost trade tie

BBN Desk — Wed, 28 Jan 2015 11:44:21 +0000

MANILA, Philippines (BBN)-The Philippines-Bangladesh Business Council (PBBC) was launched in Manila on January 21 aiming to boost trade relations between the two friendly countries.
Bangladesh has great potential in the sector of ready-made garments, ceramics, jute products and pharmaceuticals and those could be exported to the Philippines.
The trade council launching ceremony took place when a six-member Bangladesh business delegation visited Manila from January 18 to 22.
Rashed Maksud Khan, president of Bangladesh-Philippines Chamber of Commerce and Industry (BPCCI), led the team.
Participating in the launching ceremony, Bangladesh Ambassador John Gomes invited Philippines businessmen to do direct business with Bangladesh and import garments directly to the Philippines.
He pointed out that many Bangladesh small traders are now bringing ready-made garments to the Philippines on piecemeal basis.
Philippines Chamber of Commerce and Industry (PCCI), Department of Trade and Industry and the Bangladesh embassy joined the ceremony in line with the objectives of the Bangladesh-Philippines Chamber of Commerce and Industry (BPCCI) which was formed in Dhaka last year.
The idea of PBBC was floated when another delegation of Bangladesh including Bangladesh Bank Governor Dr. Atiur Rahman and Commerce Minister Tofail Ahmed visited Manila in May last year.
During the visit, they expressed their hope and belief that there are ample opportunity for enhanced trade relations between Bangladesh and the Philippines.
The potential of increased trade relations between the two
Many Filipino workers are going to Bangladesh to join in textile and RMG sector.
Both the countries have similarity in the field of manpower, specially overseas employment, infrastructure, economic and political development etc.
According to Bangladesh Ambassador John Gomes, it has long been his intention to rejuvenate the trade relations between the two friendly countries.
He felt inspired that this could be the beginning of a long drawn trade relationship which will pave the way to a two-way trade between the two countries greatly benefiting both economies.
He expressed his happiness on the signing of a MOU on increased trade relations between the two sides on this occasion.
He noted that through its ready-made garments, the textile industry is the number one foreign exchange earner of Bangladesh which has become the world’s leading RMG exporter, after China.
Bangladesh and the Philippines signed a trade agreement in 1980.
The first meeting of a joint trade committee was held in September 1989 and the second meeting was held in Manila in July 1997.
Minister for Commerce & Industry Tofail Ahmed led the Bangladesh delegation in that meeting.
About eight various trade agreements and MOUs were signed between Bangladesh and the Philippines during the last decade, but very little of those were implemented.
Bilateral trades between the two countries, although insignificant, have increased over the years and the balance is more or less in equilibrium.
Many businessmen from the Philippines are now interested to do business in Bangladesh, among whom Ambassador Carlos Chen, chairman of Liwayway Group of Companies, is looking forward to set up a factory in Dhaka for production of his famous brand food product “Oishi”.
Ambassador John Gomes thinks that the Filipino traders can invest in Bangladesh in the field of textiles, shipbuilding, hotels, seaports, land-port facilities and production of solar energy.
Bangladesh is having a sustained economic growth even through the global growth slow-down.
Foreign investors are quite happy with the investment policies and the Philippines and for that matter global community is well aware of micro finance development which has been introduced around the world.
Millions of people have been employed in different sectors because of sustained economic growth.
Strong remittance and foreign reserves have contributed to a very stable exchange rate of taka against dollar and this has also contributed to significant inflow of FDI.
Along with Bangladesh Commerce Minister Tofail Ahmed, Minister of Agriculture Begum Matia Chowdhury, and the Governor of Bangladesh Bank Dr. Atiur Rahman, on a visit to Manila last year, expressed their hope and belief that there are ample opportunity for enhanced trade relations between Bangladesh and the Philippines.
Bangladesh exports mainly chemical fertilisers, metals, jute and jute goods, leather, pharmaceuticals, ready-made garments, cotton, knitwear, tobacco etc. to the Philippines.
It mainly imports condensed milk, scrapped iron or steel, food items, yarn, synthetic fibres, frames & mountings for goggles or spectacles, vegetables, chemicals and plastic from the Philippines.
The Philippines also exports gas oil, motor gasoline and high speed fuel oil to Bangladesh for last couple of years.
Both countries are overpopulated and depend on foreign remittance received from their overseas workers.
Freedom of speech and democratic and human rights are the basis of the constitution of both countries and women’s empowerment in both countries has seen significant developments in recent times.
The ambassador thanked the Department of Trade and Industry(DTI) of the Philippines and John Paul Inigo, Commercial Counsellor, Philippine embassy, Dhaka, Philippine Ambassador to Bangladesh Vicente Vivencio T. Bandillo and Miguel Varela, chairman of Philippine Chamber of Commerce and Industries (PCCI) for cordial support from every angle in making the visit successful.
He also thanked Rashed Maksud Khan, president of BPCCI and his delegation for coming to the Philippines to explore market and trade opportunities.
He expressed optimism that from now on the trade relations between the two countries will gain a new pace toward full exploitation of opportunities from both sides.
BBN/ASI/ANS-28Jan15-5:40pm (BST)

Inflow of FDI falls by 10.2% in Bangladesh

BBN Desk — Mon, 01 Sep 2014 02:39:17 +0000

Dhaka, Bangladesh (BBN) - The inflow of foreign direct investment (FDI) fell by 10.2 per cent in the fiscal year (FY) 2013-14 because of political turmoil and inadequate supply of gas and power.
The inflow of FDI came down to US$1.55 billion in FY 14 from $1.73 billion in the previous fiscal, according to the central bank statistics.
"The FDI flow hampered seriously in the first half of the FY 14 because of confrontational political situation prevailed in the first six months of the last fiscal," a senior official of the Bangladesh Bank (BB) explained.
He also said the inflow of FDI witnessed a rising trend following improvement of the country's overall political situation after holding the parliament election on January 5 last.
Besides, lack of capacity in the public sector, bureaucratic tangles and natural disasters are often blamed as some of the major obstacles to investment in the country, according to the officials.

Inadequate basic infrastructure has also been impeding large FDI inflow in Bangladesh although it has ample opportunities to woo more foreign investors as there are cheap workforce available, they noted. ‘The shortage of gas and electricity also deterred the FDI inflows.”

State-run Bangladesh Oil, Gas and Mineral Corporation, known as Petrobangla, supplies more than 2,300 million cubic feet (mmcf) of natural gas a day against the demand of around 3,000 mmcf of gas, according to a senior Petrobangla official.

Bangladesh's all power plants are currently generating around 6, 500 MW power against a peak demand of 8,000 MW, he said, adding that around 12 power plants are generating far less than their capacity due to inadequate gas supply.

BBN/SSR/AD-01Sept14-8:43 am (BST)

Bangladesh Taka gains against US dollar

BBN Desk — Sat, 23 Aug 2014 10:10:36 +0000

Dhaka, Bangladesh (BBN)- The Bangladesh Taka (BDT) gained some ground against the greenback during the week of August 18 to August 21 last as well trading in the range of 77.43 levels.

The country’s foreign exchange (forex) market experienced adequate liquidity because of comparative lower import volume against increased inflow of wage earners.

The forex dealers do not foresee any drastic volatility in USD/BDT rate in the coming week, however somewhat more appreciation of BDT against USD will not be surprising in the context of current market situation.

The Bangladesh Bank (BB) intervenes in the inter-bank foreign exchange market whenever necessary through buying the greenback from the commercial banks to keep the foreign exchange market and the BDT currency stable.

The average daily inter-bank USD/BDT transaction volume was about $22.50 million against around $45.43 million of the week before.

Most of the banks kept their published foreign exchange rates unchanged last week. The USD/BDT selling rates for importers of major foreign and private banks was at 77.65-78.20, while USD Buying rates from exporters were at 76.65-77.20.

For non-commercial payments such as Tele Graphic Transfer as donations, wage earners remittance, dollar drafts etc. The average T.T Selling rate was at 77.8832 on the last working day.

USD/BDT SWAP market last week was very much active. The daily average volume of swap transaction was around $40.85 million.

BBN/SSR/AD-23Aug14-4:12 pm (BST)

LCs for imports go up over 13 per cent

BBN Desk — Sun, 10 Aug 2008 19:38:00 +0000

Dhaka, Bangladesh (BBN) - Opening of letters of credit (LCs) for imports increased by 13.29 percent during the first 24 days of July compared to that of the corresponding period of the previous year.

“The overall trend of opening LCs for imports, particularly food grains, will continue till September, 2008 due to the month of Ramadan,” a senior official of Bangladesh Bank (BB), the country’s central bank, told AHN in Dhaka on Sunday.

He also said a large quantity of essential commodities, particularly wheat, pulses, onion, milk food and edible oils, will be imported normally to meet the growing demand from the consumers during the month of Ramadan, a holy month for the Muslims around the world, he added.

Import LCs worth US$ 1.581 billion were opened during the period against LCs worth $1.396 billion of the corresponding period of last year, according to the central bank statistics.

LCs, opened for import of some essential items including sugar and onion, rose during the period while those on rice, wheat, milk food, edible oils and pulses marked a fall, the BB’s data showed.

BBN/SI/SI/AD-11August08-1:40 AM