Led by a surge in
vegetable oils and dairy products, global food prices hit a record high in
February, the Food and Agriculture Organization (FAO) says.
The UN agency's food price index, which tracks the most
globally traded food commodities, averaged 140.7 points last month – nearly four
percent up from January.
This is also 24.1 percent over the level a year earlier and
3.1 points higher than in February 2011.
"Concerns over crop conditions and adequate export
availability explain only a part of the current global food price increases. A
much bigger push for food price inflation comes from outside food production,
particularly the energy, fertiliser and feed sectors," said FAO economist
Upali Galketi Aratchilage Friday.
"All these factors tend to squeeze profit margins of
food producers, discouraging them from investing and expanding
production."
As the Food Price Index measures average prices over the
month, the February reading only partly incorporates market effects stemming
from the conflict in Ukraine.
The forecast does not assume potential impacts from the
conflict in Ukraine, and FAO is closely monitoring the developments and will
assess impacts in due course.
However, the head of the International Fund for Agricultural
Development (IFAD) highlighted how the crisis in Ukraine could impact global
food security.
IFAD President Gilbert F Houngbo said the continuation of
the conflict, which is already a tragedy for those directly involved, will be
catastrophic for the entire world, particularly for people already struggling
to feed their families.
He warned that the fighting could limit the world's supply
of staple crops like wheat, corn and sunflower oil, resulting in skyrocketing
food prices and hunger. This could jeopardise global food security and heighten
geopolitical tensions.
"This area of the Black Sea plays a major role in the
global food system, exporting at least 12 percent of the food calories traded
in the world," said Houngbo.
"Forty per cent of wheat and corn exports from Ukraine
go to the Middle East and Africa, which are already grappling with hunger
issues, and where further food shortages or price increases could stoke social
unrest."
The overall rise last month was driven by an 8.5 percent
increase in the FAO Vegetable Oils Price Index, a new record high.
This was mostly due to sustained global import demand, which
coincided with a few supply-side factors, such as lower soybean production
prospects in South America.
The Dairy Price Index averaged 6.4 percent higher in
February than January, supported by lower-than-expected milk supplies in
Western Europe and Oceania, as well as persistent import demand, especially
from North Asia and the Middle East.
Last month, the Cereal Price Index increased 3.0 percent
over January.
Contributing factors included rising quotations for maize
and other coarse grains, caused by continued concerns over crop conditions in
South America, uncertainty about maize exports from Ukraine, and rising wheat
export prices.
Strong global import demand contributed to the 1.1 percent
rise in the Meat Price Index.
Other factors included tight supplies of slaughter-ready
cattle in Brazil and high demand for herd rebuilding in Australia.
The FAO Sugar Price Index declined by nearly 2 percent amid
favourable production prospects in India, Thailand and other major exporters,
as well as improved growing conditions in Brazil.
FAO also published a preliminary forecast that shows
worldwide cereal output is on course to increase to 790 million tonnes this
year.
The agency updated its forecast for world cereal production
in 2021, which is now pegged at 2,796 million tonnes, a 0.7 percent increase
from the year before.
The forecast for world trade in cereals was also raised to
484 million tonnes, up nearly one percent from the 2020/2021 level.
-UNB
Food Price Price Hike Global Economy
Comment
As the Ekushey Boi Mela (Book Fair) 2024 crossed its seventh day yesterday, publishers and book sellers are hopeful for increased sales and public engagement, despite not yet reaching their anticipated sales targets.
The Dhaka Metro Rail has infused the fair with a new vibrancy, making it more accessible for visitors from distant areas like Uttara, Mirpur, and Motijheel. Ovi Islam, from Farmgate, shared his positive experience of using the metro rail to bypass traffic jams, despite the initial long wait for tickets.
Although some visitors, like Ovi who visited the fair three times without purchasing books, contribute to the growing foot traffic, the overall sales have yet to see a significant boost.
Another group of visitors from Uttara noted the ease of accessing the fair this year, thanks to the metro rail, which has offered a way to avoid the infamous Dhaka traffic congestion.
Book sellers expressed mixed feelings about the fair's progress. While visitor numbers are on the rise, actual book purchases remain lower than expected. Nur Hossen Sarkar from Anupam Prokashoni observed that many attendees are more interested in browsing than buying. Similarly, Mohammad Jabed from Mowla Brothers noted a slight decrease in sales compared to the initial days but remains hopeful for an uptick in activity.
Some exhibitors have faced challenges with their stall placements, leading to visibility and accessibility issues. Sumon Saj from Nongor Publication voiced concerns about being allocated a less favorable location and has reported the issue to Bangla Academy without seeing significant action.
Some publishers also expressed dissatisfaction about the overall arrangement and environment. These issues suggest that while the metro rail has made the fair more accessible, improvements are still needed in its organization and visitor experience.
With the fair still underway, publishers and sellers are optimistic about a surge in sales and visitor numbers, especially with the upcoming weekend.
-UNB
Comment
Private sector’s Shahjalal Islami Bank is in trouble with realisation of the loan from Dhaly Construction and grant of new loan of Tk 408 crore to the company. The loan was disbursed without adequate collateral and verifying the financial status of the customer.
According to the report of Bangladesh Bank, the then
managing director and board of directors, along with the officers of the
relevant departments of the bank's branch and head office, cannot avoid the
responsibility of this irregularity, said a report of the Bangladesh Bank.
It is known that Dhaly Construction took a loan of Tk 129
crore in 2013 from Trust Bank's Dilkusha branch in the capital. At the end of
2015, the loan amount increased to Tk 156 crores.
In November 2015, Dhaly Construction applied to Shahjalal
Islami Bank to acquire the Trust Bank loan. Dhanmondi branch of Shahjalal
Islami Bank acquired Dhaly Construction Limited's loan of Tk 118 crore from
Trust Bank in December of that year.
In December, Shahjalal Islami Bank disbursed an additional
Tk 188 crore funded and Tk 70 crore unfunded loan to Dhaly Construction Limited.
In August 2017, Shahjalal Islami Bank gave another loan of Tk 115 crore. Of
this, 85 crores are funded and 30 crores are non-funded. But Shahjalal Islami
Bank could not tell Bangladesh Bank how much money has been loaned and against
which assets.
According to the report, Shahjalal Islami Bank gave the loan
forcefully to Dhaly Construction due to the failure of various companies to pay
their debts. As a result, at the end of April this year, the amount of loan
disbursed by Shahjalal Islami Bank to Dhaly Construction stood at Tk 408 crore.
Out of this, 350 crore are funded and 58 crore non-funded.
Shahjalal Islami Bank was unable to collect the money
despite repeated efforts. Dhaly Construction has mortgaged 721 acres of land
and a building measuring 37,000 square feet as security against the loan.
In this regard, a deputy managing director of Shahjalal
Islami Bank, on condition of anonymity, told the media that “Dhaly Construction
is in a good position among the country's construction companies. We have
business relationship with them since 2015. The company is facing big
challenges due to the epidemic. Although we are hopeful of recovering the loan,
it will take more time to get the money back.”
Regarding cashing the bill of Dhaly Construction through
another bank instead of Shahjalal Bank, the Deputy Managing Director said that
Dhaly Construction did this due to the need for cash. They thought that if they
deposit the bill in the bank, the money will be deducted to pay off the loan.
However, when asked about the violation of the bank's board
of directors policy in disbursing loans, he refused to make any comment.
Dhaly Construction chairman Rafique Uddin told the media
that “Our company has implemented large road and construction projects
including several university buildings in the country. We have been facing
challenge since Covid pandemic as some our projects had to be stopped.
Moreover, the abnormally high prices of construction materials also increased
the project cost."
When asked about repayment of loan from Shahjalal Islami
Bank, he said that new projects will be taken up and the loan will be repaid.
The business relationship with the bank will also continue.
Dhaly Construction Advisor MM Mizanur Rahman told the media
that there were some errors in the documents. It will be resolved quickly. He
said, the bank can collect the debt by selling the company's assets. Apart from
this, the company is involved in several construction projects. If the work of
these projects is completed, the loan can be paid.
According to the central bank report, it was directed by the
Board to take security equal to the investment while disbursing the loan. But,
only Tk 90 crore of collateral (land and building) was taken against the funded
loan of Tk 188 crore. The board was not informed of the investment with less
security.
According to the report, Shahjalal Bank could not provide
any information to the central bank's inspection team about the amount of money
invested against specific work orders and the number of bills received in
respect of those work orders.
The report said that the board of the directors of the bank
advised taking a legal opinion before approving funded loans of Tk 188 crore
and non-funded loans of Tk 70 crore and mortgaging 721 khata land. But the bank
did not take into consideration the legal opinion while giving the loan. As no
collateral is taken for new loans, the bank's investment becomes risky.
Comment
Country's both the bourses, Dhaka Stock Exchange (DSE) and
Chittagong Stock Exchange (CSE) today plunged further due to mainly price fall
in large-cap securities.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE),
slid 65 points, or 1.01 per cent, at 6,413 at the end of the day. The DS30, the
index that consists of blue-chip companies, went down 0.93 per cent to 2,277,
while the DSES, the Shariah-complaint index, plummeted 0.80 per cent to 1,406.
Turnover at the DSE dropped 3 per cent to Taka 1,297 crore
which was Taka 1,343 crore on the previous day.
At the DSE, 26 stocks advanced, 153 declined and 182 did not
show any price movement.
Bangladesh Monospool Paper Manufacturing topped the gainers'
with an 8.64 per cent rise. Fine Foods, Rahima Food Corporation, Eastern
Cables, and Eastern Lubricants also advanced over 5 per cent.
Apex Foods suffered the highest correction, sliding almost
13 per cent. Far East Knitting, BDCOM Online, Navana CNG, and Apex Spinning
declined more than 9 per cent.
The CASPI, the all-share price index of the Chattogram Stock
Exchange, decreased 164 points, or 0.86 per cent to end at 18,895.
Of the issues on the port city bourse, 34 advanced, 104
declined, and 80 remained unchanged.
- BSS
Comment
The Executive Committee of the National Economic Council
(ECNEC) today approved six projects with Tk 7,018 crore.
The meeting was held under the chairmanship of ECNEC
Chairperson and Prime Minister Sheikh Hasina on Tuesday (October 11).
The premier joined the meeting virtually from her official Ganabhaban residence here while ministers, state ministers, planning commission members and secretaries concerned were connected to it from the NEC Conference Room in the city's Sher-e-Bangla Nagar area.
After the meeting, Planning Minister MA Mannan gave details
in the press conference.
thousand 362 crore 63 lakh will come from the government
funding, Tk 2 thousand 386 crore 48 lakh from foreign funding and Tk 269 crore
62 lakh from the organization's own funding.
Comment
The remittance
inflow sinks to lowest in seven months. The inflow of remittance dropped around
25% in September to $1.54 billion compared to August earnings.
Bangladesh received $2.04 billion in remittances in August,
according to central bank data published Sunday (2 October).
The total remittance inflow in the current financial year is
$5.67 billion, which was $5.41 billion during the same period last year.
According to experts, the cost of living for expatriates
increased due to global inflation. Additionally, they are preferring hundi over
legal remittance channels as they are getting Tk5-6 per dollar more than the
bank exchange rate.
They had expressed concern that the Hundi channel may become
more active.
Remittances dropped to a seven-month low in September as the
central bank fixed the dollar exchange rate for inward remittance. Bangladesh
received a lower remittance of $1.49 billion last February.
Bankers said the downfall happened after, on the advice of
the central bank on 12 September, the banks fixed the dollar exchange rate for
remittances at Tk108.
However, bankers had initially feared that remittances may
decrease due to fixing the exchange rate. The exchange houses said that the
remittances came in less in the first week after the rate was fixed as
remitters could not be given higher rates.
A visit to the website of several exchange houses including
Moneygram and Western Union shows that they are paying Tk106-107 per dollar for
remittance inflow. However, the houses also charge $1-2 as transfer fee.
As a result, those who send remittances in small amounts do
not get an average rate of more than Tk104-105 a dollar.
At present remittance through Hundi yields Tk113-114 per
dollar. Due to fixed exchange rate at banks, the difference between dollar
price of Hundi and the banking channel is at least Tk6-7.
Comment
As the Ekushey Boi Mela (Book Fair) 2024 crossed its seventh day yesterday, publishers and book sellers are hopeful for increased sales and public engagement, despite not yet reaching their anticipated sales targets. The Dhaka Metro Rail has infused the fair with a new vibrancy, making it more accessible for visitors from distant areas like Uttara, Mirpur, and Motijheel. Ovi Islam, from Farmgate, shared his positive experience of using the metro rail to bypass traffic jams, despite the initial long wait for tickets.
Country's both the bourses, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) today plunged further due to mainly price fall in large-cap securities. DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), slid 65 points, or 1.01 per cent, at 6,413 at the end of the day. The DS30, the index that consists of blue-chip companies, went down 0.93 per cent to 2,277, while the DSES, the Shariah-complaint index, plummeted 0.80 per cent to 1,406.