Bangladesh Economy: News & Updates

[CaPtAiN_pLaNeT]

Square Pharma sets up insulin manfcg unit

April 28, 2010 ·



Square Pharma sets up insulin manfcg unit
FE Report

Square Pharmaceuticals, the country’s largest medicine maker, has set up an insulin manufacturing unit in hopes to keep the highly expensive drug within patients’ purchasing capacity.

Finance Minister AMA Muhith inaugurated the state-of-the-art Insulin Manufacturing Unit at a ceremony at the Square’s production headquarters in Gazipur Wednesday.

Health Minister Prof AMF Ruhul Haque, health directorate secretary Sheikh Altab Ali, Square Group chairman Samson H Chowdhury and its managing director Tapan Chowdhury and diplomats of different countries were present on the occasion.

Spread over 36,000 square feet on the premises of Square Pharmaceuticals factory in Gazipur, the manufacturing facility cost Tk 900 million to be built.

The unit will manufacture insulin products using highly purified recombinant human insulin crystals in its formulation with different dosage types for covering a full spectrum of short, intermediate and long acting insulins.

The core objective of the unit – which has been built complying to US Food and Drug Administration (USFDA) and European Medicine Agency Current Good Manufacturing Practice (EMEA cGMP) – is to make available a whole range of world-class insulin products at an affordable price for the people of Bangladesh, Tapan Chowdhury said later at a press briefing.

He said imports account for around 80 per cent of the country’s Tk 1.10 billion insulin products market. “Our unit will increase the share of local production by at least 10 per cent, thus reducing dependency on foreign imports to some extent.”

Also a former caretaker government adviser Tapan said the prices of the insulin drugs produced by his company would be available at 22 per cent lesser price than the imported products.

Square is also eyeing to export insulin products after meeting the local demand, said Mr Tapan adding that his company now exports medicines to 35 countries.

Health Minister Ruhul Haque said the number of diabetic patients in the country is increasing day by day. “But most of the insulin products are imported from abroad. So it is important to have domestic manufacturing facility to produce the life-saving drug at affordable prices.”

 

[CaPtAiN_pLaNeT]

Bangladesh turns to Africa to offset Indian cotton ban
May 2, 2010 ·

Bangladesh turns to Africa to offset Indian cotton ban

Bangladesh turns to Africa to offset Indian cotton ban
Commerce minister says govt to facilitate import from African nations

Fazlur Rahman

Bangladesh plans to make Africa its main import source for cotton after India slapped a ban on export of the textile raw material, sending prices of yarn sky-rocketing in local market, commerce minister Faruk Khan said Sunday.

Khan unveiled the plan at a seminar in the city where leading cotton growers from Sub-Saharan Africa made the case for importing their “cheap” but “high quality” cotton to offset the fallout of Indian ban.

“We will utilise the scope to import low-cost but high quality cotton from the African countries,” the commerce minister said at the opening ceremony of ‘Bangladesh Cotton Marketing and Textile Training Event’ at a city hotel.

Bangladesh Textile Mills Association (BTMA), International Trade Centre (ITC) and Bangladesh Cotton Association (BCA) organised the two-day international event. Representatives from several African nations are taking parting in the event.

His comments came as the prices of yarn, which is made of spinning cotton, doubled to 90 cents a pound in April, driven by increased global demand and a ban on cotton export by second largest producer India.

Bangladesh, which almost imports cent per cent of its cotton from overseas and some 15 per cent from India, has been hard hit by the price hike.

Local spinners were forced to raise their yarn prices to the global level, affecting the knitwear manufacturers – the main users of yarn – at a time when the global apparel market showed signs of turnaround after two years of recession.

The commerce minister admitted the country’s apparel factory owners are currently “under pressure” due to abnormal hike in yarn prices in the global market and hoped that import from Africa would ease the pressure.

“The demand for cotton in Bangladesh will also help the African exporters,” Mr Khan said adding that the international seminar would help match-make African exporters and Bangladeshi importers.

He said there are some problems in importing cotton from Africa. “Those problems will be solved through discussion. The government will extend all-possible assistance to this effect.”

The minister said Bangladeshi exporters could now consider investing in overseas textile sector. “In that case, African can be the best place for investment.”

BTMA president Abdul Hai Sarker said the Sub-Saharan countries can become the country’s main source for cotton. “The African producers can easily meet up Bangladesh’s demand for cotton.”

Bangladesh on an average consumes 4 million bales of cotton a year, whereas the Sub-Saharan nations are capable of producing around 200 to 300 million bales of the textile raw material per year.

Mr Sarker said the African exporters have to improve shipment schedule to capture Bangladesh’s cotton market. “A shipment from Uzbekistan now takes around 15 days to reach Bangladesh against four months from the African countries.”

“We have proposed them to establish a buffer stock in Bangladesh’s ports so that we can bring cotton within two to three days to our factories.”

“They are also actively considering our proposal to set up buffer stock in the places convenient for Bangladeshi importers,” the BTMA president said.

Bangladesh Knitwear Manufacturers and Exporters Association president Fazlul Huq, BCA president Mohamamd Ayub and ITC programme manager Matthias Knappe also spoke on the occasion.

 

[TopCat]

Why asking African seller to improve their shipment schedule and not us work on that. We need those cotton.

 

[leonblack08]

Upbeat on drug exports to US
Pharmaceuticals association leader assesses potential of Bangladesh
Abdul MuktadirJasim Uddin Khan

Bangladesh has immense prospect to emerge as an alternative source of medicines for the US after China and India, thanks to more international accreditations and rising domestic sales.

Abdul Muktadir, the general secretary of Bangladesh Association of Pharmaceuticals Industries (BAPI), expects that at least 25 of the 203 local makers, now in operation, will gain international accreditation.

In the next five years, the local medicine sales may reach $1.7 billion, he points out in an interview with The Daily Star.

“The Chinese domestic market expansion pattern, Bangladesh's strategic location and its rising capacity to produce quality drug pin such hopes,” he says.

Muktadir has made an assurance that the pharmaceutical sector trade body would extend every support to the aspirant companies for achieving international acclaim. Besides, BAPI will take measures so that the firms proposed to be established in the API (active pharmaceuticals ingredient) Park are also accredited. The number of such firms is 40. In this context, Muktadir pointed to the fact that some companies have already obtained international recognitions like UKMHRA, TGA Australia and GCC.

Dwelling on the better chances now open for Bangladesh as a medicine exporting country, the BAPI leader points his finger at China's rising domestic demand for medicine. Perhaps, at one stage the Chinese companies will remain confined to merely meeting their local demand, rather than exports, Muktadir says.

In addition, Bangladesh is located in the middle of India and China. Such advantageous position will bring new chances for Bangladeshi companies in case of any emergency demand in those countries, he further points out.

Another positive development in the world pharmaceutical market, he says, is US President Barack Obama's new healthcare policy. This policy ushers in a possible $150 billion USA market expansion.

“If Bangladesh can make an entry with a little chunk to this market, it will be a big boon for Bangladesh pharmaceutical sector,” Muktadir said.

If the present growth continues, he says, the local drugs sales will reach $1.7 billion by 2014.

Such sales will touch the $1 billion mark by 2011, $1.3 billion by 2012 and $1.5 billion by 2013, Muktadir says.

Last year, local sales stood at $796 million, while the figure was $526 million in 2005.

The country's economic development, rising remittance earning and robust agriculture production helped drive the local sales, the BAPI leader says.

He also expects around $1 billion investments in the industry within the next few years to maintain the present growth.

Explaining Bangladesh's basic strength, Muktadir said skilled manpower flow is one of the main drivers. The country's 40 universities build up thousands of pharmacist, biochemist, doctor and engineer every year.

The BAPI secretary says once the API is established, Bangladeshi companies will be able to charge overseas buyers more prices for its products, claiming these products as DMF.

DMF (drug master file) is a document containing complete information on an API or finished drug dosage form.

It contains factual and complete information on a drug product's chemistry, manufacture, stability, purity, impurity profile, packaging, and the cGMP (current good manufacturing practice) status. Bangladeshi companies produce about 20,000 brands, half of these brands are generic products and 40 are dosage forms.

After meeting 97 percent of local demand, 15 companies are currently producing API.

Currently, about 67 countries are now Bangladesh's export destinations. The country fetched $47.88 million from exports in 2009.

The local companies already got capacity to produce all forms of medicine, including tablet, capsule, liquid, dry suspension, injections, ointment/cream, nasal spray, granules in sachets, lyophilized vials, eye drops, large volume injections in PVC bags, parenterals and pre-filled syringes.


Upbeat on drug exports to US

 

[fallstuff]

Everyone keep reading, going to update the thread with more news, much to the displeasure of idune .

 

[fallstuff]

Industrial park to be set up: Light engineering, electronics, electrical industries at one place

Sunday, 23 May 2010 21:38
The New Nation - Internet Edition

Industrial park to be set up: Light engineering, electronics, electrical industries at one place
Jamal Uddin

A Cluster Industrial Park is likely to be set up in the country for the first time combined with four-type of industries- plastic, light engineering, electronics and electronical.

Small and Medium Enterprises (SME) Foundation on behalf of the government is supervising the project where International Finance Corporation (IFC), an associate organisation of World Bank, is providing financial and technical assistance.

Sources said two locations have been selected for the project in Keraniganj area and the activities of the project are expected to commence in the beginning of the next year.

Syed Rezwanul Kabir, Chairman of the SME Foundation told The New Nation that the industrial park would accelerate production as well as reduce cost due to availability of all necessary raw materials in the same area. "Now these industries are situated in different places, especially in Dolaikhal area, a place renowned for light engineering. This hampers getting raw materials and related equipment easily," he said, adding, "Our target is to combine the plastic, light engineering, electronics and electronical industries under one roof which is also a demand of the industrialists for a long time."

According to the plan all out preparations would be completed by December this year, the SME Foundation Chairman hinted, saying that ownership of the industrial park would be the owners of the industrial plots, not the government. But a government institution would supervise the activities of the industrial park, he added.

He said the importance of this sector is growing day by day nationally as it is contributing around Tk 10,000 crore in the national economy.

EPB sources said light engineering instruments worth US$190 million were exported in FY2008-09, US$219.68 million in 2007-08, US$237 million in 2006-07, US$111 million in 2005-06 and US$ 85 million in 2004-05.

About 40,000 light engineering industries are operating in the country generating employment opportunities to about six lakh people, according to the light engineering association.

The organisation said these cluster industries are the mother organisation of all industries as they produce capital machineries.

Link:
The New Nation - Internet Edition

 

[fallstuff]

BGMEA tries to expand market to India

BGMEA tries to expand market to India
Syful Islam

Country's garment manufacturers are vigorously trying to expand market to neighbouring India where presently only 8 million pieces are allowed to enter, sources said.

To this effect organising of single country fairs and several buyer-seller meets have been planned to attract Indian customers.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the apex apparel body, on May 20 signed a Memorandum of Understanding (MoU) with Confederation of Indian Textile Industries (CITI) to work jointly for raising textile business between the two countries.

"The MoU was signed to enhance cooperation among two organisations to raise textile trade between the two countries," BGMEA director and Tusuka Fashions Ltd Chairman Arshad Jamal (Dipu) who signed the deal told The New Nation yesterday.

"We have urged Indian authority to lift the quota system of 8 million pieces and allow duty free access of our entire RMG goods to their country. Removal of non-tariff barriers can help further raise Bangladesh's RMG export to India," Dipu said.

BGMEA sources said an exclusive one day buyer seller meet will be held in Kolkata very soon where chief executives of Indian top retailers will be present. A 10-member delegation led by BGMEA president Abdus Salam Murshedy will join the event to pursue the Indian buyers to import more garment from Bangladesh.

A delegation of India Bangladesh Chambers of Commerce and Industry (IBCCI) led by its president Abdul Matlub Ahmad yesterday met Abdus Salam Murshedy at his office to discuss the progress of the meet. IBCCI is coordinating the arrangement of the high profile buyer-seller meet.

Organising of single country fairs of Bangladeshi RMG goods in different Indian cities including Mumbai, Delhi, Bangalore and Hyderabad are under process, sources added. Under the South Asian Free Trade Agreement (SAFTA) agreement Bangladeshi garment manufacturers since 2007 can export 8 million pieces of goods to Indian market with zero tariff facility.

However, the Bangladeshi exporters could not export the said amount since its introduction as no big manufacturers joined the rally facing various tariff and non tariff barriers imposed by Indian authority. Indian authority recently raised countervailing duty to 23.5 per cent on RMG export to its country.

During the January-May period this year 4.95 million pieces of garment were exported to Indian market under the SAFTA deal.

Arshad Jamal (Dipu) said 8 million pieces is very much tiny volume for Bangladesh, one of the world's biggest apparel manufacturing country. As the size is very small none of the big manufacturers becomes interested to export apparel under the deal, he said.

Talking to The New Nation BGMEA president Abdus Salam Murshedy was hopeful to make a good scope to export apparels in India.

"We are launching drives to different destinations for market expansion. At present a BGMEA delegation is visiting Latin American countries like Brazil, Chile and Mexico to find markets there. We are very much hopeful to be successful to catch big Indian market," he said.

Export Promotion Bureau (EPB) statistics show that Bangladesh has exported knitwear worth US$14, 14,000 and woven garments worth US$95, 24,000 during the fiscal year 2008-2009.

Link:
The New Nation - Internet Edition

 

[fallstuff]

GP crosses 25m subscribers

GP crosses 25m subscribers
FE Report

Grameenphone Ltd, country's largest mobile phone operator Saturday crossed 25 million-mark active subscriber base.

"We are extremely happy to see such a milestone and our concerted efforts will continue to develop the country's economy through mobile connectivity, " Raihan Shamsi, deputy CEO and chief financial officer of GP told the FE Sunday.

More than a third of the country's 150 million population are now under mobile phone coverage, as six cellphone operators' total customers crossed the 50-million milestone in September of 2009 to reach 50.4 million, according to Bangladesh Telecommunication Regulatory Commission (BTRC).

Voice communication through mobile telephony started with CDMA (code division multiple access) technology introduced by Pacific Bangladesh Telecom Ltd -- the owning company of Citycell -- in 1993.

The expensive communication device started to become handy gradually after the introduction of GSM (Global System for Mobile Communications) technology by Grameenphone and AKTEL (now Robi) in 1997.

Banglalink and state-run TeleTalk launched their services in 2005 and Warid came as the latest entrant in 2007.

"Mobile communication is the key driver for the Digital Bangladesh. The first 50 million has taken 15 years to reach; I feel that in the right business environment, the next 50 million subscribers will happen much faster with an enabling policy-support," Mr Shamsi said.

Grameenphone remains the market leader in the 50.55-million mobile market followed by Banglalink and Robi.

The costly mobile service later came to the mass with the introduction of comparatively cheap GSM (global system for mobile communications) technology.

The market has become tough for bottom three operators since 2005 as top three operators in the meantime grabbed more than 90 percent market shares triggering a stiff price war.

GP crosses 25m subscribers

 

[fallstuff]

Rainwater to recharge underground reservoirs

Rainwater to recharge underground reservoirs
Wasa finally initiates pilot project to up falling water level in Dhaka
Helemul Alam

After over two decades of groundwater level decline, Dhaka Wasa will at last start recharging the aquifers of the capital this monsoon, to save the city from a looming scarcity of supply water, and subsidence of the ground surface.

Dhaka Water Supply and Sewerage Authority (Wasa) started a pilot project titled "Artificial Recharge from Rainwater" around five months back at two places of the city, said a high official of the government agency.

"Under the taka one crore pilot project, rainwater will be harvested at Wasa office compounds in Lalmatia and Segunbagicha, then the water will be filtered and sent to aquifers through two wells," said Wasa Deputy Managing Director (Operation and Maintenance) Liakat Ali.

The infrastructural work including construction of the wells, and rainwater harvesting reservoirs is expected to be completed next month, said the other official.

According to a 2006 assessment study by the Institute of Water Modelling (IWM), commissioned by Wasa, the groundwater level at different parts of the capital has been dropping by two to three metres a year, Liakat said.

The reason for the decline is excessive use of the groundwater through deep tube wells; and filling up of low lands, canals, and other water bodies, said experts.

Unplanned dumping of sewage, and household and industrial wastes, in the city rivers and other water bodies, makes it difficult for Wasa to use surface water, resulting in its dependency on groundwater, said Selim Bhuiyan, a Bangladesh Water Development Board engineer.

Prof Mujibur Rahman of Bangladesh University of Engineering and Technology (Buet) said the city will face a huge water crisis in the near future if Wasa continues lifting groundwater through the huge number of its deep tube wells.

The practice, if goes on unabated, might lead to disasters like subsidence of the ground surface, said Selim Bhuiyan.

Around 80 percent water of unconfined aquifers, which are the closest to the ground surface, is used up, said Md Eftekharul Alam, an engineer of Bangladesh Agricultural Development Corporation.

Dhaka Wasa has already been forced to lift water from the deeper confined aquifer at 90 points of the city including Mirpur, Nakhalpara, Ibrahimpur and Manipur, said a former chief engineer of the agency, Md Nurul Haque.

According to a Wasa statistics, currently the source of 87 percent of supply water in the capital is groundwater through 551 deep tube wells. The remaining 13 percent comes from surface water through 4 water treatment plants at Sayedbad and Chandnighat in Dhaka City; and at Godnail and Sonakanda in Naraynaganj.

Md Nurul Haque said there are also around 1,200 authorised private deep tube wells in the city, which are extracting groundwater as well, on top of which there are almost 2,000 illegal ones.

To save Dhaka from an impending disaster, the experts suggested stopping pollution of the rivers in and around the city, and reclaiming other water bodies as well, along with recharging the aquifers.

Use of effluent treatment plants in industries, and setting up waste treatment plants to treat human excreta, are a must for preserving surface water sources, said Prof Mujib of Buet.

The contract for the aquifer recharging project was awarded to IWM in December 8, 2009 by Wasa. The institute is supposed to submit its report in March next year, said the Wasa high official.

"It is not a new technique, it has been in use all over the world. If we get a positive result from the pilot project, we will start implementing it on a much larger scale in the city next year," said Wasa DMD Liakat, adding, private compounds of high rises can also be brought under the programme then.

Wasa already made a plan to reduce its dependency on groundwater, he said. When Sayedabad Water Treatment Plant Phase-II will be completed, surface water's share at the city's taps will rise to 23 percent, he added saying, the plant is scheduled to be ready for operation in two and a half years.

Wasa also took an initiative to set up two more water treatment plants in Khilkhet and Keraniganj of the city with capacities of treating 50 crore litres and 45 crore litres respectively per day, he said, "We are hoping that the two treatment plants will be operational within the next five years, curbing our dependency on groundwater to fifty percent."

Dhaka Wasa has the capacity of supplying around 200 crore litres per day while the demand is for 220 crore litres.

According to a statistics of Bangladesh Water Development Board, groundwater level in Mirpur dropped 53.75 metres between 1991 and 2008, while the decline was 18.59 metres in Mohammadpur, 37.4 metres in Sabujbagh, 8.22 metres in Sutrapur, and 14.14 metres in Dhaka Cantonment during the same period.

Link:
Rainwater to recharge underground reservoirs

 

[fallstuff]

Three urea fertiliser plants in the pipeline


Three urea fertiliser plants in the pipeline
Barua says govt moves to check sugar prices in Ramadan
Star Business Report

The government will set up three new urea fertiliser factories having around six lakh tonnes of annual production capacity, said the industries minister yesterday.

"The government plans to increase the country's fertiliser production to ensure food security. And for that we are going to set up the factories," said Dilip Barua.

“Of the three projects, construction work of Shahjalal Fertiliser Factory will start by the year-end,” he said while addressing a press briefing at the ministry's conference room.

The industries ministry hosted the briefing to inform about the progress of state-owned mills, factories and government initiatives for the development of the country's industrial sector.

Bangladesh and China signed an agreement for constructing the Shahjalal Fertiliser Factory during Prime Minister Sheikh Hasina's visit to China in March.

The estimated cost of the project is around Tk 6,000 crore, of which the Chinese government has agreed to provide Tk 1,624 crore as loan, said the minister.

He said the government had a stock of 28 lakh tonnes of fertiliser as of April 30 against the demand for 29.5 lakh tonnes set by the agriculture ministry for the current fiscal year.

The government plans to reopen four fertiliser factories in phases, which were shut down in the face of acute gas crisis, Barua said.

In a bid to ease fertiliser distribution system and enhance storage capacity, the government has also taken steps to set up 13 new warehouses in different districts, said the minister.

He said the government has decided to import 25,000 tonnes of sugar from the international market to help keep sugar market stable during Ramadan.

“The cabinet purchase committee has already approved import of 25,000 tonnes of sugar. The industries ministry has also set a target to import one lakh tonnes of sugar through Bangladesh Sugar and Food Industries Corporation.”

The sugar price will be set once the import is complete, he said, adding that the price will be at a tolerable level.

Local manufacturers have produced a total of 62,000 tonnes of sugar in the July-April period of the current fiscal year, said Barua.

He said the government is keen on reopening four paper mills soon, and has conducted several feasibility studies in this regard.

The government is trying to enhance local production of paper and reduce dependence on imports, the minister said.

"Now the matter of reopening Pakshi Paper Mill is under consideration of the finance ministry, and once we get approval, the mill will be operational."

He also said nine industrial units of Bangladesh Steel and Engineering Corporation made profit of Tk 71 crore in the July-April period.

The industries ministry has achieved 58 percent success so far in implementing a total of 22 projects in the annual development programme of the current fiscal year, Barua said.

"We are optimistic about achieving 99 percent progress in project implementation by June."

Link:
Three urea fertiliser plants in the pipeline

 

[fallstuff]

Seoul extends zero-duty access to 878 Dhaka goods


Seoul extends zero-duty access to 878 Dhaka goods
Major Bangladeshi export items to enjoy the facility
Nazmul Ahsan

South Korea has extended duty-free access to 878 Bangladeshi goods including garments from July this year to boost trade ties between the two nations, officials said Thursday.

Asia's fourth largest economy made the offer under the Asia-Pacific Trade Agreement (APTA) of which both Dhaka and Seoul are members, Commerce Ministry officials said.

The proposal follows China's duty-free access offer to 4,721 Bangladeshi goods, the boldest by a developing country that has even caught the local trade officials by surprise.

Officials said although Seoul's zero-duty list is one-fifth of China, it would benefit Bangladesh immensely as most of Dhaka's export items are eligible for the offer.

"Ready-made garments, jute and jute goods, pharmaceuticals, leather, leather goods and bi-cycle are included in Seoul's duty-free list," a high official of the Ministry of Commerce (MoC) told the FE.

"If our exporters can exploit the opportunity fully, it'll benefit our export enormously," he said, adding Bangladesh got the offer due to its status as a least developed country.

South Korea announced the preferential trade access offer during an APTA meeting in Seoul, a trade diplomat said. Until now only a few Bangladeshi goods enjoy such access to the far eastern Asian country.

The South Korean offer will be effective from July, he said, adding the goods in the list must have 35 per cent of their values added in Bangladesh if they were to enjoy zero-duty facility.

Seoul has allowed "regional cumulation" facility, meaning the products whose raw materials are outsourced from other APTA members will also avail the duty-free access to South Korean market, officials said.

Thailand, Laos, Myanmar, Sri Lanka and China are other members of APTA, formerly known as Bangkok Agreement.

Officials said Bangladesh also needs to offer duty-free access to some South Korean products as part of the arrangements made in the APTA.

Presently, Bangladesh enjoys duty-free access to 27 European Union nations under its Everything but Arms (EBA) trade access facilities the continental grouping extended to the world's least developed nations.

Thanks to the EBA and its precursor GSP (Generalised System of Preference), Bangladesh apparel sector has become a twelve billion dollar industry in just little over a decade's time.

The country also enjoys duty free access of hundreds of products to countries in North America, Asia and Oceania. But in most cases, Bangladesh's main export item, apparel, has been made off-limit to these generosities.

Experts said zero-duty access of Bangladeshi garments, leather and leather goods to more than a trillion dollar Korean market would boost local industry and export earnings.

"The offer is a very important one for Bangladeshi merchandise as South Korea is Asia's fourth largest economy and one of the fastest growing in the world," said a trade official.

"Especially apparel and clothing market in South Korea is worth multi-billion dollars with China ruling the roost," he said, adding Bangladeshi garments will be competitive in Seoul.

Presently, trade between Korea and Bangladesh is negligible. Bangladesh exported goods worth only $100 million to Korea in 2008-2009 financial year.

Link:

Seoul extends zero-duty access to 878 Dhaka goods

 

[leonblack08]

Three urea fertiliser plants in the pipeline

Where will the gas come from?we already are having gas shortages.I don't know if there is any other alternative.Anyone having knowledge on this please share.

 

[eastwatch]

Bangladesh turns to Africa to offset Indian cotton ban
May 2, 2010 ·

Bangladesh turns to Africa to offset Indian cotton ban

Bangladesh turns to Africa to offset Indian cotton ban
Commerce minister says govt to facilitate import from African nations

Fazlur Rahman

Bangladesh plans to make Africa its main import source for cotton after India slapped a ban on export of the textile raw material, sending prices of yarn sky-rocketing in local market, commerce minister Faruk Khan said Sunday.

Khan unveiled the plan at a seminar in the city where leading cotton growers from Sub-Saharan Africa made the case for importing their “cheap” but “high quality” cotton to offset the fallout of Indian ban.

It will be good move by BD to diversify its source of textile raw materials from that bragging India to some other countries in Africa and possibly to the central asian countries.

Indians claim that the big boy India only helps us by very KINDLY exporting annually 3 billion dollars' worth of goods to BD. Indians are not grateful to us. But, the African countries will worship us if we import only $1 billion worth of raw cotton every year.

Please note that BD textile export will reach more than $20 billion in only a few years time. We need more cotton, but India's present economic development will not allow it to maintain even its present export to BD.

Therefore, I think, BD has taken a timely step to diversify its sources of import. A strong tie-up with African countries will allow some of them to earn foreign exchange from us. This will help them to build their countries, too.

 

[eastwatch]

Why asking African seller to improve their shipment schedule and not us work on that. We need those cotton.

I do not think so. There are so many bottlenecks in the system of African countries, that they themselves can only solve. However, I prefer the BD proposal that the african exporting countries jointly stockpile their goods in a BD port so that BD factories can import immediately from this stock.

This proposal merits consideration by them. By the way, I have read two units for weighing cotton in the news article. One is pound, and the other is bale. Can someone teach me how many pounds make one bale?

 

[idune]

Where will the gas come from?we already are having gas shortages.I don't know if there is any other alternative.Anyone having knowledge on this please share.

bingo, that is the right question.