Economy
Govt signs MoU to import one lakh tons of rice from NCCF
NCCF: National Cooperative Consumers Federation of India Limited has announced its interest in exporting one lakh metric tonnes of non-basmati rice to Bangladesh.
The exchanged is to be done between the governments, known as Government-to-Government (G2G) level trade, awaits cabinet approval, officials said.
The price of non-basmati rice per ton, if imported by container ships or cargo trains, has been set at $433.60 while the total cost has been estimated at Tk 447.90 crore.
The food ministry proposal will be placed before the cabinet committee on public purchase meeting on Wednesday (21 December) The meeting will be presided over by finance minister AHM Mustafa Kamal.
The proposal said in order to ensure food security of the country and to keep the government’s food distribution system functioning, the Ministry of Food procures wheat and rice from the international market in addition to internal procurement.
The ministry is procuring wheat and rice through international open tender and G2G basis for they are easier to import and available at competitive prices.
According to the proposal, the prices of paddy and rice are rising in the market due to some disruption in production caused by Covid-19, increase in fuel oil price, increase in transportation cost and heavy rains and flash floods. In such a situation, it is necessary to import rice on an urgent basis in this financial year, the proposal added.
Responding to the proposal of the food ministry, India’s NCCF sent a letter on December 2, expressing its interest in supplying rice. After reviewing the letter, the Indian delegation was invited to participate in a virtual meeting moderated by the Ambassador of Bangladesh in New Delhi. Accordingly, a virtual meeting of the procurement committee was held on December 13, 2022, in Bangladesh to endorse a G2G rice trade.
In that meeting, there was discussion and negotiation on terms and price of the rice, import contract on a G2G basis etc. After several discussions and negotiations, Bangladesh decided to import one lakh metric tonnes of non-basmati parboiled rice from India and a memorandum of understanding (MoU) was signed in this context.
The proposal said the price of rice per metric ton by sea or rail shipment would be $ 433.60, which is $11.57 more than the estimated total average price of $422.03 recommended by the Market Price Verification Committee.
However, there is an urgent need at present, as it is not possible to procure whole rice from the domestic market, as Bangladesh is named in the list of 45 food crisis countries in a report of the United Nations Food and Agriculture Organization.
Some 70,000 metric tonnes of rice will be imported by sea vessels and 30,000 metric tonnes by cargo trains.
Bangladesh to Host Major Roadshow in the USA to Boost Dollar Deposits
Next Friday, on May 24, Bangladesh will host a significant roadshow in the USA, featuring 30 managing directors from various domestic banks. This event aims to attract dollar deposits in response to recent fluctuations in foreign exchange rates.
A total of 45 officials, including the managing directors of these 30 banks, will travel to the USA for a special promotional program designed to increase US dollar deposits in banks via offshore accounts. This marks the first time such a large gathering of Bangladeshi bank MDs will take place abroad.
Sources indicate that commercial banks are launching special campaigns to boost the flow of dollar deposits. The program will encourage expatriates to send dollars through official banking channels. To this end, a specific event focused on Offshore Banking Fixed Deposits has been organized for expatriates at a hotel in New York.
The Bangladesh Ambassador to the United States, Mohammad Imran, will serve as the chief guest at the event. Other special guests include Muhammad Abdul Muhith, Permanent Representative of Bangladesh to the United Nations in New York; Deputy Governor Kazi Sayedur Rahman; and Md Najmul Huda, Bangladesh Consulate General in New York.
This gathering highlights the increasing interest among Bangladeshi banks in diversifying their foreign currency reserves by exploring opportunities in offshore banking.
As part of this initiative, a promotional event has been organized to encourage Bangladeshis residing in the United States to deposit dollars through offshore banking.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
