special
Spice prices soar in Faridpur ahead of Eid-ul-Azha
As the nation is set to celebrate Eid-ul-Azha on June 29, the demand for spices is high in Faridpur district as elsewhere. Soaring prices, however, are putting further pressure on the already struggling low-income and middle-income people.
Traders in the district blamed shortage of spices behind the price hike.
However, people claimed that had the local administration strengthened monitoring the markets, spice prices could be at a tolerable level.
Spice market heats up
During a recent visit to Chwakbazar in Faridpur city, this UNB correspondent found that local and imported ginger is being sold at Tk 350 per kg while it was Tk 250 last week.
Besides, prices of coriander, cloves and cinnamon have also increased ahead of Eid.
Meanwhile, cardamom (big) is being sold at Tk 2500-2700 per kg while cumin is being sold at Tk 950 per kg.
Spice prices shoot up ahead of Eid despite sufficient stock
River erosion washes away road in Sunamganj; thousands suffer
Gobindganj-Dasghar road in Sunamganj’s Chatak upazila has gone into the gorge of the Boterkhola River due to severe erosion, leading to the complete halt of vehicular movement on the road.
A portion of the 500 feet concrete road collapsed into the river in the Singua area of Gobindganj Saider Gao Union last week.
Read: Chandpur town protection embankment faces erosion threat again
The road served as the lone means of movement of the residents in 50 villages of the upazila, and it has caused immense sufferings to them.
The affected villages include Krinchnagar, Harinagar, Shyamnagar, Govindanagar, Nakhrakali, Malikandi, Dasghar, Lakshipur, Bindpur, Barachal, Khalagao, Bhugli, Banarshi, Bagin, Dakshin Para, Uttara Para, Chhaila, Shiran, Alampur, Banglabazar, Digalbak, Nowapara, Srinagar, Kahalla, Auli and others.
Read more: Barguna’s Betagi town protection embankment threatened by river erosion amid ‘authorities’ apathy’
Lumpy skin disease kills around 300 cows in Sylhet’s Kanaighat upazila, farmers worried ahead of Eid-ul-Azha
Hundreds of cattle in Kanaighat upazila of Sylhet district have contracted lumpy skin disease — causing grave concern among farmers ahead of Eid-ul-Azha.
Some 300 cows infected with lumpy skin disease have died in the upazila; cattle farmers and those who rear cows at home are facing huge losses as a result.
Sources said, the viral disease has been noticed in most cattle farms in the upazila. Cattle farmers are particularly worried considering the Eid-ul-Azha season, as they have been rearing the animals for the occasion.
Due to the outbreak of the virus, no cattle market has been set up in the upazila.
Cattle farmers worry over spread of lumpy skin disease
The viral disease is being noticed in Laxmiprashad West, Laxmiprashad East, Dighirpar East, Satbak and the municipality area.
The veterinarians in the Upazila Livestock Hospital are struggling to provide medical treatment to the cattle.
Talking to owners and farmers of different cattle farms, UNB’s Sylhet correspondent learnt that lumpy skin disease had spread in the area two and a half months ago.
At first, small lumps were seen on the cows and later the lumps were swollen. At one stage, reddish holes appeared on the cows’ skin, the farmers described.
Workshop discusses measures to prevent lumpy skin disease
The infected cows cannot be fed properly as their throats also swell up, they added.
Most of the infected cows die due to gradual weakening.
It is a highly contagious virus, but the affected cattle can be cured after a few months of proper treatment.
Dr. Nabanita Sarkar Tonni, in-charge of Kanaighat Upazila Livestock Hospital, said most of the cattle in the locality are being infected with the virus and there is no vaccine and medicine for its treatment.
Lumpy skin disease causes concern for Faridpur cattle farmers
The authorities concerned of the hospital have already circulated leaflets and made announcements about the outbreak of lumpy skin disease. A meeting has also been arranged in each union with farmers and farm owners over the issue, she said.
“Despite manpower shortage, we are providing treatment to the infected cattle. It takes 3-4 months for the cows to be fully cured and the farmers have been asked to have patience,” she added.
Dr Nabanita also advised the farmers to keep their cows under nets, so that the virus is not spread to healthy animals.
The Fisheries and Livestock Ministry suggested checking mosquito breeding in farm areas and using antipyretic, antibiotic and antihistamine from registered veterinarians to control the disease.
Read more: Eid-ul-Azha 2023: 1,76,690 sacrificial animals ready in Chapainawabganj
Eid-ul-Azha 2023: 1,76,690 sacrificial animals ready in Chapainawabganj
There will be no shortage of sacrificial animals in Chapainawabganj district this Eid-ul-Azha, and there will be a surplus of around 50,000 animals, concerned authorities have said.
According to the Chapainawabganj unit of Department of Livestock, the district has 1,76,690 animals, as 12,159 farmers in five upazilas are currently rearing sacrificial animals for Eid-ul-Azha 2023.
This year, the demand for sacrificial animals in the district is estimated to be 1,26,379, resulting in a surplus of 50,311 animals for the entire district.
Read: With Eid-ul-Azha approaching, Khulna cattle famers distraught over price hike of fodder
These animals have been reared in farms and in homesteads. Of these animals, there are 96,543 cows, 70,319 goats, 9,587 sheep, and 241 buffaloes.
Budget FY23-24: Focus should be on tackling macroeconomic challenges, says Dr Atiur Rahman
Bangladesh's upcoming national budget for FY23-24 should focus on macroeconomic challenges such as taming inflation, better revenue collection, rein in growing defaulted loans and IMF-suggested reforms.
This was stated by Dr Atiur Rahman, former governor of Bangladesh Bank in conversion with UNB on the expectations from the budget to be placed in parliament on June 1.
Dr Atiur said budget will certainly have to address a number of macroeconomic challenges. The foremost is, of course, the inflation which is still running high at more than nine percent.
“Bringing this down to 6.5 percent in the next fiscal year may not be easy unless we go fast towards market-based solutions of major macroeconomic challenges arising out of administratively controlled indicators like rate of interest and foreign exchange rates,” he said.
Read more: Tk337.60 crore budget for FY2023-24 approved for placing in Parliament
Thanks to the IMF programme, the budget may encourage regulatory authorities to go for an ‘interest rate corridor’ and a ‘single exchange rate’ that are long overdue. If we could have followed this time- tested path of market-driven macroeconomic management many of the ongoing challenges would have been addressed by now, said the development economist.
“Yet, it is better late than never,” he said adding “Of course, some sectors like agriculture, export and remittances would still need fiscal support and they must continue to get it.”
This, he said, will be desired support to the real economy which can contribute towards easing supply-side constraints to reduce inflation to some extent.
However, constraining demand pressure by raising interest rates still remains a major move to reduce inflation. “I hope the macroeconomic managers would like to take this prudent path in the next fiscal year without any hesitation.”
Read more: Curbing inflation without destabilising macroeconomic situation presents challenge for budget: Selim Raihan
He said the rich are currently enjoying huge advantages of negative rate of interest when adjusted against inflation rate may raise political economic hurdles against such a move. But the gains of long-term macroeconomic stability must guide the policy makers to overcome such pressures, said Dr. Atiur.
“I think one must not look at IMF conditionalities negatively as the budget makers have also been flagging such reforms for quite some years. The local economists in general have also been arguing for a more balanced budget with manageable deficits,” he said.
Bangladesh, of course, has done pretty well in maintaining budget deficits around five percent. This year it may go above five percent (5.3%) which is not that bad.
“To maintain this level of budget deficit we need to raise our domestic resources by reforming our tax administration system through higher levels of digitalization and a more efficient tax system,” Dr Atiur said.
Read more: Tk 75,000cr revenue shortfall to widen current fiscal’s budget deficit: CPD
The banking system has been well digitised in the meantime. Why should the NBR not take advantage of this modernisation of the money market and replicate a fully digital revenue administration system?, he questioned.
Since the inflation remains very high, the fiscal measures for higher levels of social security for the extreme poor and lower income groups in terms of higher food subsidies and support for agriculture must continue in the upcoming budget as well. Strategic support for digital infrastructures for making the economy smarter must also be the cornerstone of the next budget, he pointed out.
“Simultaneously, we must keep our budget as cautious as possible to restrain the inflationary outlook,” he noted.
Read more: Inflation, revenue shortfall, dollar crisis the major challenges for economy ahead of election-year budget
Curbing inflation without destabilising macroeconomic situation presents challenge for budget: Selim Raihan
Economist Dr Selim Raihan believes the National Budget of Bangladesh for the fiscal year 2023-24 is being presented at a difficult time, when it will be a challenge to devise policies to manage inflation while also maintaining a stable macroeconomic situation,
Dr Selim Raihan is Professor at the Department of Economics, University of Dhaka, and the Executive Director of the South Asian Network on Economic Modeling (SANEM).
Talking with UNB on the upcoming budget, Dr Raihan pointed out two major challenges--controlling inflation and macroeconomic management for the upcoming budget.
“Higher inflation for a long time creates instability in the domestic markets and lower-income people are affected severely,” he said.
Read more: No new pay scale, govt employees to get 20% dearness allowance in new budget
The government’s measures to cut inflation have not proved effective, so new measures to reduce inflation need to be included in the budget, he opined.
Dr Raihan said the monetary policy is not working to curb inflation as there is a mismatch with interest rates - the continued delay in withdrawing the interest rate caps also prolongs inflation.
Besides, a big challenge of domestic market management is that government agencies could not implement effective market management against monopoly businesses.
As a result, prices of many essential items are higher in the domestic market relative to the global market. Notably, prices of some items increase in Bangladesh at the same time that there is a downward trend in the international market, said Dr Raihan.
Read more: No let-up in safe drinking water scarcity in Khulna’s Dacop
Regarding macroeconomic management, he said reducing the defaulted loans and achieving the revenue collection target are big factors for stability.
Forex reserves management and foreign exchange rate fluctuation also worked for instability of the macroeconomic situation, which are required to make it stable, he said.
The International Monetary Fund (IMF) gave conditions for reducing defaulted loans to a desired level, but the latest update revealed no headway in that regard, which Dr Raihan said was alarming.
The IMF’s desired target of increasing the tax GDP ratio by 0.5 percent each year, till the 2025-26 fiscal, is also proving a challenge for the National Board of Revenue.
Read more: Inflation, revenue shortfall, dollar crisis the major challenges for economy ahead of election-year budget
The SANEM chief said although the revenue collection target increased every year in the budget, in the absence of any coherent plan and institutional capacity-building initiatives for NBR, there is almost no progress towards attaining those targets. In fact, the revenue collection shortfall keeps getting wider, he pointed out.
Dr Raihan suggested joint initiatives of Bangladesh Bank and the Ministry of Finance to reduce the defaulted loans, saying the central bank alone cannot handle the issue.
He also sought the central bank’s effective measures to ensure good governance in the banking sector, averting the pressure of any influential group.
Dr Raihan also suggested increasing allocation and coverage under the social safety net, to ease the woes of vulnerable groups.
Read more: Bank default loans surge to Tk1.31 lakh crore: BB
No let-up in safe drinking water scarcity in Khulna’s Dacop
Over 2 lakh residents of salinity-hit Khulna’s Dacop upazila have been grappling with a severe shortage of safe drinking water since the onset of the dry season.
Long queues have become a common sight at shops selling purified open water, while some people are resorting to collecting water from distant sources.
The dire situation has forced some residents to consume water from ditches and drains, leading to an outbreak of various waterborne diseases, including diarrhoea.
Also Read: Many embankments turn vulnerable in Khulna’s Koyra; Fear grips residents
Dakop, which borders the Sundarbans, consists of three separate islands. Due to the high salinity levels in the surrounding rivers, the region experiences an extreme scarcity of fresh water during the dry season, said locals.
This year, as in previous years, the municipality and nine unions are grappling with an acute shortage of safe drinking water.
Visiting different areas in the upazila, the UNB correspondent found the scarcity of clean water has even affected the functioning of tea shops, restaurants, and sweet shops, frustrating shopkeepers who are unable to provide clean water to their customers.
Also Read: Walking the extra mile for water in coastal Khulna
The agricultural sector has also been severely affected , particularly in the current ‘Robi’ season when Boro paddy and watermelon farmers experiencing substantial losses due to the inability to irrigate their fields.
Most of the shallow tube wells have been lying inoperative and many tubewells contain salt, arsenic, and excessive iron content, exacerbating the water quality issues, said locals.
Furthermore, the region experiences insufficient rainfall, further limiting water availability.
Read more: Short Films on Water: Dhaka DocLab, British Council to screen four climate documentaries
Consequently, filtering water from ponds has become the only viable option for the locals. However, the scarcity of water in the inadequate ponds renders most filters or pond sand filters (PSFs) ineffective.
Wealthy individuals in the Batiaghata area of Khulna are able to purchase water from different locations, while middle-class and low-income residents are left with no choice but to consume water directly from the pond.
Consequently, the scarcity of clean drinking water has compelled this large population to rely on unhealthy food and water, resulting in a surge of waterborne diseases, including diarrhoea.
Read more: Coca-Cola Foundation, WaterAid working to enhance water security in Bangladesh
Nimai Mandal, a UP member from Ward No. 9 in the Kalabagi area, along with many others, explained that they have to endure great difficulties in collecting fresh water from the neighboring Kailashganj area, a journey of approximately 4 to 5 kilometers by boat.
Meanwhile, those who have the means and resources, purchase water from outside the region.
Nimai Mandal highlighted that some vulnerable individuals in the area resort to directly consuming impure water from the pond.
Samaresh Mandal, a hotelier in Chalan Bazar, expressed his predicament, saying, “Due to the water shortage, I am unable to provide water to customers. As the water from the pond is unhealthy for consumption, we are forced to use it for washing plates."
Read more: Water crisis hits Boro cultivation in Feni ‘s Sonagazi
Similar concerns were echoed by Milan Mallick, a tea shop owner.
In response to the crisis, Mehdi Hasan Bulbul, Panel Mayor of the Chalan Municipality, said that a water purification plant has been completed in the municipality under a water project aimed at resolving the drinking water crisis.
Additionally, house-to-house pipeline works are underway in various areas of the municipality.
Bulbul thinks that once these projects are completed, the shortage of fresh water in the municipality area will be significantly alleviated.
Abdullah Al Mahmud, Sub-Assistant Public Health Engineer of Dakop Upazila, said there are ongoing projects.
Read more: Dhaka calls for enhanced int'l financing for sustainable water management
However, he also said that these efforts are inadequate against the region's requirements.
To meet the growing demand for water, the engineer suggested individually and institutionally digging ponds and ‘dighis’ during the critical period.
Expanding the number of rainwater harvesting tanks and ponds in the region is deemed essential to mitigate the water crisis, he added.
Munsur Ali Khan, Chairman of Dakop Upazila Parishad, said the Upazila Parishad has initiated a project to distribute water tanks among underprivileged families.
Measures are being taken to excavate ponds and canals as alternative water sources, he said.
Read more: How to Build Dhaka as a Water Wise City
IPPs call for uniform import duty on primary fuels
Removal of discrepancies in the import duties imposed on primary fuels, which are used as inputs in power generation, can reduce the government’s subsidies in the power and energy sector.
The notion is being put forward by the private power producers of the country, also known as IPPs (independent power producers).
They are claiming that the discriminatory import taxes on primary fuels - furnace oil (diesel), coal, and gas (LNG) - ultimately favours the coal-fired power plants that projects the government’s biases towards ‘the dirtiest fuel’.
Currently there is a 5 percent duty on the import of coal, which rises to 34 percent on furnace oil, aka heavy fuel oil (HFO), and 22 percent on gas.
Read more: Ilisha-1 country’s 29th gas field: Nasrul Hamid
As a result, the price per MMBtu (metric million British Thermal Unit) of coal comes to Tk 10-11 and when power is generated from coal, it costs Tk 12-13. After adding 5 percent import duty, the cost of electricity from coal-fired power plants becomes Tk 13-14.
On the other hand, the price per MMBtu of HFO comes to Tk 11-12 and the power generation from the HFO costs Tk 11-12 due to its higher heat value. But when the 34 percent import duty on HFO is added, its power generation cost becomes Tk 15-16 per unit.
In the same way, the cost per MMBtu of imported gas is Tk 11-12 and its power generation cost becomes 10-11 due to its higher heat value. But after adding the import duty of 22 percent, the per unit electricity generation cost from gas-fired plants goes up to 13-14 per unit.
“If the discrepancies are removed from duty regime, and import duty on all fuels is made uniform at 22 percent, the production cost of electricity from diesel-fired plants will be lower than that of coal-fired power plants,” said Imran Karim, former president of Bangladesh Independent Power Producers Association (BIPPA), the trade body representing the interests of private power producers.
Read more: Many big industries using illegal gas connections: Nasrul Hamid
Karim, also the vice chairman of Confidence Group, a leading firm in private power generation, said the duty should be uniform considering the government’s commitment to support cleaner fuels - coal being the original dirty fuel. Furnace oil of course is no better.
“The government will receive more revenue from imported fuels, if the duty on all fuels are equalised,” he added.
According to the Power, Energy and Mineral Resources Ministry’s estimate, in the current fiscal 2022-23, the power and energy sector will require over Tk 23,000 in subsidies to cover its losses.
Of this, the power sector will require Tk 18,000 crore while around Tk 6000 crore would go on primary fuels.
Read more: New PSC: Petrobangla awaits final nods to invite int’l bidding for offshore blocks
Earlier, the loss in the sector was estimated much higher at over Tk 70,000 crore due to the excessive price hike of gas, coal and petroleum fuel following the war in Ukraine that began in February 2022.
But after the enhancement of fuel prices on the domestic market by more than 40 percent pn average and power tariff by more than 15 percent, the losses came down and subsequently the requirement for subsidy was also reduced to around Tk 23,000 crore, said officials at the Ministry of Power, Energy and Mineral Resources.
Private power producers claim that if the import duty on coal and furnace oil were made the same as that on gas, i.e. 22 percent, it would reduce overall costs and thus reduce the subsidy as well.
“Because, the power generation by furnace oil-based plants will automatically go down and it will ultimately have an impact on the overall tariff structure in the power sector by seeping through to both the wholesale and retail levels,” said an IPP plant operator.
Read more: Petrobangla initiates move to end foreign company’s monopoly in pre-paid gas metering system
Power Cell director general Mohammad Hossain said that both coal and furnace oil are dirty fuels, so by the IPPs’ logic, the import duty on these two fuels should be higher than on gas - not uniform.
“The import duty on coal and HFO should be equal and import duty on gas could be comparatively lower as it is the cleanest of the three,” he said.
Mango growers, traders in Chuadanga disheartened by low price
Mango growers and traders in the western district of Chuadanga have been left disappointed as the prices of their produces are low comparing to the previous years.
This situation caused concerns among them, who fear incurring losses if the wholesale market continues to perform poorly.
Following the availability of Ati, Guti, and Bombay varieties mangoes in the market, Himsagar mangoes have now entered the market in the district.
According to the 'Mango Calendar' created by the Chuadanga District Administration and Agriculture Department, the collection and marketing of mangoes in the district commenced on May 14. However, the sales of Ati, Guti, and Bombay verities mangoes during the first week of the harvest did not meet expectations, said local farmers and traders.
Also Read: Mango export begins with 10 tonnes to 4 countries
Later, the harvest and marketing of Himsagar mango began on May 22. Despite an abundance supply of mangoes in the market, demand remained remarkably low, they said.
Wholesale prices for Bombay mangoes ranged from Tk 1,000 to Tk 1,200 per maund, while Ati and Guti mangoes were selling for Tk 350 to Tk 500 per maund, depending on size and quality, they said.
On the other hand, Himsagar mangoes were being sold at Tk 1,200 to Tk 1,400 per maund.
In the retail market, the prices per kilogram were TK 45 to 50 for Himsagar, TK 40 to 45 for Bombay, and TK 15 to 20 for Anti and Guti.
Read more: Mango harvest begins in Natore with Gopalbhog variety
At the beginning of last year's season, Himsagar mangoes were sold in the wholesale market at rates ranging from Tk 2,000 to Tk 2,400 per maund. Similarly, Bombay mangoes were sold between Tk 1,600 and Tk 2,000 per kg, while Ati and Guti mangoes fetched prices of Tk 1,200 to Tk 1,400. This year, however, prices have decreased by nearly half.
According to sources from the Department of Agricultural Extension (DAE), a total of 2,465 hectares land were brought under mango cultivation in the current season and 28,265 metric tonnes are expected to be produced.
As per the mango calendar, Lengra mangoes will be harvested and marketed on May 25, followed by Amrapali and Bari-3 on June 5, Fazli on June 21, and Ashwina and Bari-4 on July 1.
The main hub for mangoes in the district is Barabazar Phalpatti, situated on the banks of the Mathabhanga River in Chuadanga town. Each morning, trades, buyers throng the market. Currently, four types of mangoes dominate the market, with Bombay and Himsagar mangoes experiencing high demand.
Also Read: Bumper production of mango: Chapainawabganj farmers are all smiles
Md. Rafiq, a wholesaler, attributed the price decline to an excess supply of mangoes compared to the current demand.
But he expressed optimism, saying, “However, the market will pick up in a few days, and mango sales will increase. Additionally, the huge demand for litchi in the market is still affecting mango sales. Once the demand for litchi decreases, mango sales will improve, leading to higher prices.”
Nuruddin, a mango trader, expressed his concerns about the current market situation, fearing that farmers' capital would suffer if prices continued to remain low.
“ It is disheartening to witness such low prices for mangoes,” he said.
Read more: Mango harvesting in Rajshahi begins Thursday
Kalam Miah, general secretary of the Chuadanga District Fruit Traders Association, highlighted that the market still had various seasonal fruits, including litchi, readily available.
He added, "If mangoes continue to be sold at such low prices, how will the farmers make any profit? If mango prices remain low throughout the year, how will they sustain themselves?”
Inflation, revenue shortfall, dollar crisis the major challenges for economy ahead of election-year budget
Preparations for Bangladesh's national budget for the 2023-24 fiscal must balance expectations in an election year with the conditions of the International Monetary Fund (IMF), and tackle inflation, foreign exchange crisis and revenue shortfall.
Balancing public satisfaction and protecting the economy is a major issue. Economists say it has been seen in the past that election year budgets often prioritise public satisfaction over the improvement of the economy.
As such, the opportunity to deliver a budget that is satisfactory is very limited, said macroeconomist and public policy analyst Dr Debapriya Bhattacharya, who is also a Distinguished Fellow at the Centre for Policy Dialogue (CPD).
Read more: Safeguards are needed to protect vulnerable people under IMF-backed reforms: Debapriya
He told UNB, "Before the election, all governments want to give a budget that satisfies the people. But due to the financial situation, fiscal deficit, and trade deficit, the opportunity is very limited for the government. If such a big effort is made, it will have a negative impact on the overall economy."
"It is important to remember that this budget will be implemented by two governments. In this budget, flexibility must also be preserved. Because, if the government makes any big promises, there is doubt as to how much they can implement," he pointed out.
Dr Debapriya said that the budget is coming at a time of political uncertainty in the country. Plus exit from LDC, and the Covid-19 response revival are issues hanging over the budget.
Also read: 11pc of Bangladesh budget allocated for disaster risk reduction: State Minister
“Compared to any other year, this year's budget has to be prepared in a very complicated situation. Because earlier, there would be a deficit in terms of income and expenditure in the country, but there would be comparative relief in terms of foreign transactions. But this time it is not,” he opined.
Dr Debapriya said, "There has been a major disruption in the growth rate. It is going down further because there is no money, no dollar. There is a huge deficit in both areas to be dealt with together.”
So the government has to control imports and limit its investment program. As a result, next year's growth target should also be moderated.
Read more: Despite many challenges, Bangladesh remains one of the fastest growing economies in Asia-Pacific: Visiting IMF team
"The financial structure has actually weakened," he said.
Executive Director of the South Asian Network on Economic Modeling (SANEM) Salim Raihan, also a professor of economics at Dhaka University (DU), said that in the previous election years, the economy was not in such a crisis as this time.
"As a result, no new major pressure was created in the economy despite budgeting for public satisfaction at that time. But this time, if the budget is made considering only public satisfaction in view of the election, it will create new pressure on the economy," Professor Raihan said.
Read more: Bangladesh’s GDP growth rate will overtake China’s in current fiscal year, IMF predicts