Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) opposed the banks' decision to increase interest rate on already disbursed loans.

President of the country's apex business body FBCCI Mr A K Azad Saturday said that the banks were demanding more than 18 per cent interest on the already disbursed loans.

"Banks have been charging 18 to 19 per cent interest on the loans given two years back which is not at all logical," he said.

The FBCCI chief said this while addressing a programme on "Modernising Agriculture and Agricultural Produces, Meeting Domestic Demand and Expanding Export" organised by Bangladesh Agricultural Product Producers and Merchants Association (BAPMA) held at the conference hall of the Federation in the capital.

Opposing the decision of the Bangladesh Association of Banks (BAB) Mr Azad said, the BAB decided that they would give 12.5 per cent interest to depositors and would take 15.5 per cent interest from the borrowers.

"But the decision will also hurt the struggling industries as the interest rate for the borrowers is higher," he said.

He also criticised the hit- and- miss circulars by the Insurance Development and Regulatory Authority (IDRA), Bangladesh saying that those are hampering the country's business stability.

Mr Azad also said only 100 men of the country has taken nearly Tk 400 billion from the banks recently which has also hurting the rest of businesses in the country.

Talking on the agricultural product marketing the FBCCI head emphasised on modern packaging and transportation system to reduce post harvest losses.

He said, "North Bengal should be prioritised for agro-based industries as the region is now producing more than 50 per cent of our total food demand".

Criticising failures of Trading Corporation of Bangladesh (TCB) Mr Azad said that the government should leave TCB under PPP to strengthen it and ensure food at fair price to the consumers.

Commerce minister GM Quader while addressing the programme as the chief guest said TCB will be strengthened further and the government intervention will remain in food market to protect the market from uneven competitions.

He said, TCB is now contributing only 3.0 per cent of food products which is very small. It should be increased, he added.

Talking on the increased interest rate by the banks on old loans he assured the businesses that he would place it to the government.

UNB adds: Admitting the prevalence of extortion at every point, GM Quader said it is the extortion not middlemen that pushes up the prices of essentials at consumer level.

"Manipulators are there…middlemen will also be there, but extortion at every point -- production to consumer level -- raises the prices of basic goods," he told a seminar in the city.

Quader, the lone Jatiya Party (JP) representative in the Cabinet, thinks it is happening for lack of good governance and accountability. "We need to stop the extortion at any cost…to make that happen, we need to ensure good governance."

FE report further adds: While explaining food security he said, a country can be called as food secured country only when it is self -sufficient in staple food items.

He said we have to increase production in a limited land space to ensure food security in the country.

FBCCI first vice president Md Jashim Uddin stressed the need for processing a particular food item which will be available round the year.

"It would also ensure fair price to the farmers," he said.

President of Bangladesh Supermarket Owners' Association (BSOA) and group director of Rahimafrooz Mr Niaz Rahim emphasized on information dissemination for the growers to maintain quality of raw agricultural produces.

FBCCI vice president Mr Mostofa Azad Chowdhuri Babu expressed his opinion that every district should have a separate industrial zone to protect farm lands and ensure food security.

Standard Bank Ltd chairman Md Aqramuddin Ahmed said that his bank was very much interested in providing loan to the farmers and small businesses in North Bengal.

He commented that the poor never default loan which the rich men do.

BAPMA president Mr Ruhul Amin who chaired the programme said, "WTO's irrational conditions and intervention of multinational companies are threatening our agriculture and we have to protect it from any intervention to secure food sovereignty of the country".

Post harvest quality expert Dr Sale Ahmed presented a paper which revealed that the country would need 30 per cent more rice by 2025 than the present quantity.

Besides rice, we will also require additional 6.5 million tonnes of vegetables, 1.5 million tonnes of fruits, 2.0 million tonnes of fish, 1.5 million tonnes of meat and 2.6 million tones of milk by the time, the paper said.

Transportation and storage expert Dr Sreekanta Sheel presented a paper which revealed that the country incurs a loss of 1.825 million tonnes of fruits and vegetables worth Tk 26.29 billion due to post harvest mismanagement.

The paper suggested modernisation of packaging system from growers level to the retail level in the cities.

Chief scientist of floriculture at Horticulture Research Centre Dr Kobita Anzuman- Ara presented a paper on floriculture which showed a great prospect of flower export from Bangladesh.

Chairman of Bangladesh Cold Storage Association Md Jasim Uddin, director of Bangladesh Rice Exporters Association Md Ishaqul Hossain Sweet among others also spoke.

Financial Express/Bangladesh/ 19th Feb 2012