Body formed to look at shrimp sector problems
Sunday, 10 April 2011
Monira Munni
A committee has been formed to help frozen food exporters iron out the problems facing the sector in the aftermath of the global recession, officials said. Headed by the economic advisor to the Prime Minister Dr Mashiur Rahman, the committee is mandated to deal with the problems of the country's third largest foreign exchange earner, Kazi Shahnewaz, president of Bangladesh Frozen Food Exporters Association (BFFEA), told the FE Saturday. The sector has been suffering from credit crunch since the onset of the global financial crisis that ultimately escalated to a full-blown economic crisis. BFFEA leaders last month met with the Prime Minister Sheikh Hasina, seeking her assistance to overcome the crisis. The committee members include principal secretary to the Prime Minister, finance secretary, banking and financial institution secretary, Bangladesh Bank governor, commerce secretary, fisheries and livestock secretary and representatives of the association. "We will hold a meeting on April 19 with the committee members to identify the problems and the potential wayout," the BFFEA chief said. The BFFEA leaders demanded additional 2.50 per cent cash support, which was forfeited in the current fiscal, to remain competitive in the local market and offset losses from the global financial meltdown. In 2009-10 fiscal year, the government increased cash support to 12.5 per cent, from 10.0 per cent, for the exporters to overcome the negative impact of the financial crisis. But later it cutback 2.5 per cent. "Our frozen food sector witnessed negative growth during the last two years, though this fiscal we have a robust growth," an exporter said adding growth would be possible if cash support is available. But the growth is unlikely to sustain in the upcoming fiscal, he feared. "Overseas sales of shrimp may decline in the next fiscal due to reduction in government cash incentives for the sector," he said. Due to the recession, exporters are also facing cash credit shortage and the meeting is expected to discuss the issue, he said, adding how the exporters might be supported through the government's cash support or other sources. The exporters demanded a special allocation from the government through state-owned and private banks so that they can overcome the liquidity crisis.
A committee has been formed to help frozen food exporters iron out the problems facing the sector in the aftermath of the global recession, officials said. Headed by the economic advisor to the Prime Minister Dr Mashiur Rahman, the committee is mandated to deal with the problems of the country's third largest foreign exchange earner, Kazi Shahnewaz, president of Bangladesh Frozen Food Exporters Association (BFFEA), told the FE Saturday. The sector has been suffering from credit crunch since the onset of the global financial crisis that ultimately escalated to a full-blown economic crisis. BFFEA leaders last month met with the Prime Minister Sheikh Hasina, seeking her assistance to overcome the crisis. The committee members include principal secretary to the Prime Minister, finance secretary, banking and financial institution secretary, Bangladesh Bank governor, commerce secretary, fisheries and livestock secretary and representatives of the association. "We will hold a meeting on April 19 with the committee members to identify the problems and the potential wayout," the BFFEA chief said. The BFFEA leaders demanded additional 2.50 per cent cash support, which was forfeited in the current fiscal, to remain competitive in the local market and offset losses from the global financial meltdown. In 2009-10 fiscal year, the government increased cash support to 12.5 per cent, from 10.0 per cent, for the exporters to overcome the negative impact of the financial crisis. But later it cutback 2.5 per cent. "Our frozen food sector witnessed negative growth during the last two years, though this fiscal we have a robust growth," an exporter said adding growth would be possible if cash support is available. But the growth is unlikely to sustain in the upcoming fiscal, he feared. "Overseas sales of shrimp may decline in the next fiscal due to reduction in government cash incentives for the sector," he said. Due to the recession, exporters are also facing cash credit shortage and the meeting is expected to discuss the issue, he said, adding how the exporters might be supported through the government's cash support or other sources. The exporters demanded a special allocation from the government through state-owned and private banks so that they can overcome the liquidity crisis.