Processed food export falls 11pc in first seven months

The export earnings fell 11 per cent to US$ 386 million in the first seven months (July-January) of the current fiscal year (2019-20) as compared to that of the same period previous FY. The earnings were also 15 per cent lower than the period’s official target. The export of processed and dry food items earned an all-time high of $700 million in FY 2018-19. Bangladesh exports vegetables, processed and dry foods, fruits, tobacco, flower and foliage, spices etc. to 130 countries, according to Bangladesh Fruit, Vegetable and Allied Products Exporters’ Association (BFVAPEA) and Bangladesh Agro-Processors’ Association (BAPA). Kingdom of Saudi Arabia, UAE, Qatar, Bahrain, Oman, Singapore, Malaysia, Hong Kong, UK, Italy and France are the leading importers. The country’s agro-processing sector is a $ 3.2 billion industry in terms of annual turnover, including $700 million in export earnings. More than 250 agro-processors fetched 81 per cent of the total export earnings ($ 908 million) from agriculture produce in FY 2018-19, according to BAPA. The demand for locally manufactured spices, biscuits, juices, puffed rice and drinks is growing fast abroad thanks to a large population of the non-resident Bangladeshis. If they produce puffed rice, they have to buy rice at Tk 40 a kg as against only Tk 30 for the Indian producers. The operating cost is also higher by Tk 5.0-10 a kg in our country which is also a reason for the decline in exports.

Source: https://today.thefinancialexpress.com.bd/trade-market/processed-food-export-falls-11pc-in-first-seven-months-1581780315

RMG accessories makers urge govt to take necessary steps in advance

Expressing deep concern over the outbreak of ‘Novel Coronavirus’, the country’s readymade garments (RMG) accessories manufacturers on Saturday expressed the fear that they would lose around Tk 15 billion if the current situation continues for several more months. They requested the government to consider, in advance, providing them with a loan facility at a nominal or zero-interest rate to cope with the setback. President of the trade body Md. Abdul Kader Khan said the sector imports raw materials worth around US$ 4.0 billion every year from different countries, 40 per cent of which is brought from China. Due to the virus outbreak in China, disruption in the supply chain could continue for several more months. The sector would have to count a financial loss worth Tk 14 billion to Tk 15 billion. Some 1,744 members are affiliated with the BGAPMEA, who manufacture 35 categories of accessories and packaging materials. They sell their merchandise as deemed exports as well as direct export.

Source: https://today.thefinancialexpress.com.bd/trade-market/rmg-accessories-makers-urge-govt-to-take-necessary-steps-in-advance-1581780393

Push towards Digital Bangladesh props up Banglalink

Banglalink, once the country’s most spirited operator, is finally turning around its fortunes by putting in higher emphasis on digital services and investment on 4G network. The carrier’s revenue last year edged up 3.7 percent year-on-year to Tk 4,528.37 crore in 2019. But their turnover is still low compared with the numbers reported for 2016 and 2017. Of the revenue growth last year, the data segment played a vital role: it raked in Tk 919.39 crore from its 2.15 crore active internet subscribers. The operator’s total active user number stood at 3.36 crore at the end of last year, indicating that it is experiencing tremendous success with its internet offerings. Some 12 per cent of Banglalink’s customers are using 4G-supported smart devices at the end of 2019. In 2018, Banglalink data users were consuming on average 1,024 MB data. Last year, it soared to 1,370 MB, reads the VEON report. The report also pointed out that 72 per cent of Bangladesh’s total population was under Banglalink’s 3G coverage, while 29 per cent have 4G coverage. Once the second largest operator in the market, Banglalink got a setback in 2016 after the merger of Robi and Airtel that year. Subsequently, Robi leapfrogged Banglalink to the number 2 spot. Banglalink was also struggling with the spectrum crunch, due to which customers were getting poor performance. This prompted the operator to acquire 10.6 Megahertz of spectrum in 2018 and invest heavily on improving its network. The VEON’s report also pointed out some challenges: in the second quarter of 2019 the Bangladeshi tax regulator has increased the supplementary duty on subscription revenue to 10 per cent from 5 per cent. The SIM tax was also increased to Tk 200 from Tk 100 and the minimum tax rate on revenue was increased from 0.75 per cent to 2 per cent. The custom duties on smartphones increased from 10 per cent to 25 per cent, which also massively impacted the overall industry.

Source: https://www.thedailystar.net/business/telecom/news/push-towards-digital-bangladesh-props-banglalink-1868665