• Dhaka Sat, 28 DECEMBER 2024,
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Vegetable Prices Down While Rice, Chicken Prices Soar; Soybean Oil Crisis Persists
Garment Export Trends in Europe: A Resilient Performance
Europe remains the largest destination for Bangladesh’s ready-made garments. Under the Generalized System of Preferences (GSP) scheme, Bangladesh benefits from duty-free access throughout Europe.  However, indirect and direct wars in Europe have led to persistent inflation in recent years, increasing living costs and reducing consumer spending. Despite these challenges, Bangladeshi garment exports to Europe have maintained a positive trajectory. Positive Winds for Garment Exports in Europe From January to October 2024, Bangladeshi garments worth $16.52 billion were exported to Europe, reflecting a modest growth of 1.43% compared to $16.28 billion in the same period last year. In contrast, China, the largest garment exporter to Europe, recorded a 1.14% growth, while Turkey, the third-largest exporter, experienced a 5.56% contraction in exports. China: $21.82 billion (up from $21.58 billion in 2023) Bangladesh: $16.52 billion (up from $16.28 billion in 2023) Turkey: $8.59 billion (down from $9.10 billion in 2023) Post-Pandemic Recovery and War-Induced Challenges Bangladeshi garment exports surged after the pandemic, but the Russia-Ukraine war disrupted this trend. High inflation in Europe caused living costs to rise, leading to reduced spending on clothing. However, inflation is stabilizing, and the market is showing signs of recovery. Despite this, domestic challenges such as high fuel prices and political instability have tested Bangladesh's resilience. Missed Opportunities in European Markets Industry leaders believe Bangladesh could have achieved greater success in Europe, given its garment industry's strengths and duty-free advantages. Mohiuddin Rubel, a former director of BGMEA, noted that Bangladesh's growth in Europe is modest compared to the typical 10-12% growth rate. “Despite duty-free access, we’re not performing as expected. Europe should naturally remain our top market, but other countries are taking larger shares,” Rubel remarked. Low-Priced Orders: A Competitive Necessity Bangladesh is accepting lower-priced orders to stay competitive and fully utilize its production capacity. Rubel explained, “Global demand has dropped, and competition has increased. Our capacity remains unchanged, but buyers are importing less. In a free market, they aim to buy at the lowest price, and we’ve had to comply.” This strategy has slightly constrained export income growth. However, industry stakeholders see this as a necessary measure to adapt to market realities. Preparing for Future Challenges Rubel stressed the importance of enhancing efficiency, reducing costs, and boosting productivity to sustain profitability. He emphasized that merely pressuring buyers for higher prices isn’t a long-term solution. Instead, maintaining an ethical pricing standard and improving operational efficiency are critical. Vietnam: A Growing Competitor Vietnam, a significant rival, ranks sixth in Europe for garment exports. From January to October 2024, Vietnam achieved a growth rate of 3.31%, nearly double Bangladesh’s growth. However, Bangladesh’s total export volume of $16.52 billion far exceeds Vietnam’s $3.5 billion. This disparity highlights the need for Bangladesh to remain vigilant, optimize efficiency, and sustain its position as a leading garment exporter to Europe.
IMF Lowers Bangladesh's Growth Forecast to 3.8%, Inflation to Hit 11%
468 Tons of Potatoes Imported from India through Benapole
Vegetable Prices Begin to Drop
Indian Rupee Hits Record Low
Bottled Soybean Oil Back to Market After Price Hike
"For the past few days, shopkeepers kept saying the same thing—bottled soybean oil has been unavailable. However, if it was found in rare places, it was claimed a high price. However, today (December 10), I see a completely different scenario in the market. Every shop has plenty of oil. That means whatever happened till now was nothing but a scheme by the syndicate to hold people hostage," said Mansura Hossain, a private-sector employee while shopping for daily essentials in Karwan Bazar. Expressing her frustration, Mansura said, "Prices of essential commodities are often raised under the pretext of shortages, causing hardships for ordinary people like us. We are forced to buy at higher prices." Al-Amin, a CNG driver, said, "Yesterday morning I returned empty-handed because there was no 1-liter bottled soybean oil. But today, bottled soybean oil is available everywhere. Does this make any sense? Are they free to do whatever they want without any accountability?" The CNG driver further alleged, "If there was a shortage, then where did all this oil suddenly come from? Or are the traders orchestrating this to hike the prices? The government should investigate the real reason behind this." On Tuesday morning (December 10), a visit to the capital's Karwan Bazar area revealed shelves overflowing with bottled soybean oil. However, as the new price-adjusted oil had not yet arrived, consumers were still able to buy at the previous rates. Speaking to several retailers, the reporter stated that after the announcement of the price hike, dealers increased the supply of oil in the market. However, oil at the new price has not yet been supplied in the market. As a result, consumers are buying 1-liter bottled soybean oil for 167 BDT and a 5-liter bottle for 818 BDT. Retailers also mentioned that from Wednesday (December 11), the new oil will arrive in the market and will be sold at 175 BDT per liter. Earlier, on Monday (December 9), Trade Advisor Sheikh Bashir Uddin announced an increase in the price of both bottled and loose soybean oil per liter an 8 BDT. He said the price of bottled soybean oil has been set at 175 BDT per liter, while loose soybean oil is priced at 157 BDT per liter. Citing the increase in prices on the international market, the advisor added, "The primary reason for the price hike is the supply shortage of edible oil globally."
Trade Fair in January: How to Get Tickets
The 29th Dhaka International Trade Fair (DITF) will commence on January 1, 2025, and run throughout the month. For the first time, tickets for the event will be available online.  The fair will be held at the Bangabandhu Bangladesh-China Friendship Exhibition Center (BBCFEC) in Purbachal, Dhaka. Bibek Sarkar, Secretary of the Export Promotion Bureau (EPB) and Director of the Trade Fair, confirmed this information to the media. Key Highlights of the Fair: The fair will be inaugurated by Dr. Muhammad Yunus, the Chief Advisor of the interim government at 10 am on January 1. This year's theme highlights the sacrifices made during the July-August mass uprising, with special memorial corners named after Shaheed Abu Sayeed and Shaheed Mir Mugdha. A Youth Pavilion will focus on engaging the younger generation, and a dedicated area for senior citizens will ensure comfortable seating for elderly visitors. Facilities for Women Entrepreneurs: Stalls will be allocated to women entrepreneurs at a lower cost, enabling them to sell products at affordable prices.   Fair Design and Features: The entrance will showcase a theme inspired by the July-August mass uprising, while the fairground will highlight the EPB’s activities and various financial sectors. Online Ticketing System: For the first time, visitors can purchase tickets online through an app, allowing entry by scanning a QR code on their phones. Tickets will still be available at physical counters, including BRTC bus counters.   Ticket Pricing: Entry fees remain unchanged Adults: 50 BDT Children: 25 BDT   Transportation and Parking: A dedicated BRTC bus service will operate from Kuril Flyover to the fairground daily from 8 am to 10 pm. Ample parking facilities will be available to minimize visitor inconvenience. Security Measures: The fair will be secured by members of the police, RAB, and the army, with mobile courts also in operation.   International Participation: Companies from countries like India, Pakistan, Iran, Turkey, Malaysia, Indonesia, Hong Kong, and Singapore are expected to participate, with a total of 350 stalls. Preparations for the event are nearly complete, with about 80% of the work finished, according to Bibek Sarkar.   Notably, the 29th edition of the upcoming trade fair will include 350 stalls and participation from various organizations from India, Pakistan, Iran, Turkey, Malaysia, Indonesia, Hong Kong, and Singapore. For this year's event, members of the police, RAB, and armed forces will be engaged in ensuring overall security. Additionally, mobile courts will also be in operation. Moreover, the fair center will feature extensive parking facilities to ensure visitors face no inconvenience.
White Paper: Report Finds Several Dominant Channels For Corruption
The White Paper Committee identified several dominant channels of corruption including banking loan scams, misappropriation of loans, and politically motivated unviable projects, appearing to be a wide-ranging and deep-rooted manifestation of corruption during the deposed Awami League regime. The White Paper Committee head and Distinguished Fellow of the Centre for Policy Dialogue (CPD) Dr Debapriya Bhattacharya today (December 02) formally unveiled the report to the media exposing the dominant channels of corruption at the NEC conference room in the city's Sher-e-Bangla Nagar area. Other members of the committee were present. The dominant channels are described below which include banking loan scams, fraudulent practices in illusory bank loans, and misappropriation of loans. Bank Takeover: Forced takeover of ownership of banks with the help of state machinery. Illicit financial outflows: Ill-gotten money is laundered out of the country in large volume. Politically Motivated Unviable Projects: Resources are wasted on unviable projects, prolonging timelines and inflation costs. Inflated Project Costs: Systematic cost overestimation to siphon funds. Project Cost Escalation Post-Approval: Costs are artificially escalated after project approval to divert funds. Non-Competitive Tender Processes: Cronyism and favoritism dominate procurement, excluding qualified bidders. Unnecessary or Poorly Designed Projects: Resources are wasted due to weak feasibility studies, prolonging timelines, and inflating costs. Nepotism in Appointments: Project management, particularly Project Directors, is often appointed based on political connections rather than merit. Illegal Land and Asset Acquisitions: Land and assets are seized or acquired through illegitimate means. Misappropriation of Land Acquisition Funds: Politically weak landowners are coerced into unfair deals, and funds allocated for land acquisition are misused. Awarding Overpriced Contracts: Contracts are often granted to politically connected contractors at inflated prices and given without competitive bidding. Abuse of Project Resources: Misuse of vehicles, travel budgets, and other project resources for personal or political gain. Bribery as a Standard Management Practice: Bribes are routinely exchanged to expedite processes or secure favors. Misallocation of Public Funds: Funds intended for development are diverted to serve political and/or personal objectives by the leaders. Tax Exemptions for Elites: Tax policies disproportionately benefit influential groups. Distorted Supply Chains: Manipulated supply chains lead to unfair pricing and market inefficiencies. Sharing Insider Information: Policy decisions are leaked to select groups for financial gain. Collusive Corruption: Collaboration between public officials and private actors for mutual benefits. Extortion-Based Corruption: Coercion is used to extract bribes or enforce unfair deals. Monopolistic Corruption: Market conditions are manipulated to favor specific individuals or entities. Pre-emptive Information Sharing Corruption: Early access to critical information is exploited for undue advantage. Information Concealment Corruption: Withholding important information to mislead stakeholders. Corruption by Inaction: Deliberate delays are used to create opportunities for rent-seeking. Corruption for Career Advancement: Bribes and connections are leveraged to secure promotions or influential positions. Commission-Sharing Corruption: High-level officials demand a share of commissions for approvals. Corruption for Political Favour: Resources and decisions are manipulated to secure political allegiance or favor. Legislative Manipulation Corruption: Laws and policies are tailored to serve vested interests. The review of the White Paper puts the banking sector on top of the most corruption-ravaged sector, followed by physical infrastructure, and energy and power. Information and Communication Technology (ICT) was also identified as one of the most corruption-affected sectors by its operational and technological novelty. This non-exhaustive list of pervasive corrupt practices highlights the urgent need for systemic reforms and robust accountability mechanisms to restore governance integrity and economic resilience, the paper said. Source: BSS