China, fighting a spreading tainted milk scandal, needs a more coherent food-safety system, with unified laws, one overarching watchdog and faster sharing of information, the United Nations said on Wednesday.
China has been swept by a series of food- and product-safety scandals involving goods as diverse as toys, tires, toothpaste, pet food, fish, beans, dumplings and baby cribs.
In the latest case, thousands of Chinese children fell ill and at least four died from drinking milk formula contaminated with melamine, which has since been found in a series of drinks and foods and led to products being pulled from shops worldwide. ‘We see that a disjointed system with dispersed authority between different ministries and agencies resulted in poor communication and maybe prolonged (the) outbreak with a late response,’ said Jorgen Schlundt, the World Health Organisation’s food safety chief, referring to the melamine case.
‘We need to have a coherent system that covers the full farm-to-fork table,’ he told a news conference in Beijing at the launch of a UN paper on improving food safety in China.
Inconsistent regulations, poor enforcement, weak rule of law and powerful local officials and businessmen have allowed illicit operations and practices to thrive with sometimes minimal and patchy scrutiny from central authorities.
Despite mounting international expectations for a food safety overhaul, China’s vast size and complex web of government agencies and product quality watchdogs have long made maintaining standards a problematic and Herculean task.
China, which is currently overhauling its food safety legislation, says it is aware of the problems.
‘For an effective food safety system there should be one overarching piece of food safety legislation that covers food safety from production through to consumption,’ added the WHO’s regional adviser on food safety, Anthony Hazzard.
Meanwhile, Thailand’s Food and Drug Administration said Wednesday it had pulled Malaysian-made cheese crackers off the shelves after finding they contained high levels of the toxic chemical melamine, reports AFP.
The Julie’s brand of biscuits with a cream cheese filling was the second product to be removed from sale by the Thai health ministry since the melamine scandal in China.
‘The results from the melamine tests showed high levels of melamine beyond the maximum limit in the Julie’s cheese sandwiches,’ Pipat Yingseree, the FDA secretary general, said in a statement.
‘The FDA asks consumers to stop eating this product and the FDA has already notified the importer and retailers to recall the product from the market,’ the statement from the health ministry department said.
Samples of seven other Julie’s products are currently being tested for melamine, an industrial chemical that has been found mostly in Chinese dairy products.
Earlier this month, Thailand’s ministry of health pulled the Mali brand of condensed milk off the shelves after it detected high melamine levels.
Wednesday, October 22, 2008
UN agencies asks govt to recall dairy products if tests confirm contamination
Three UN agencies have advised the government to recall all milk products contaminated by melamine from the Bangladesh market as soon as tests could confirm melamine presence in the imported brands of powder milk.
Offering support for further testing of powder milk samples, the UN agencies on food, health and children’s affairs also reminded not only government authorities but also food producers and importers of their duty to ensure safety of food products.
Local offices of the Food and Agriculture Organisation, World Health Organisation and UNICEF in a statement on Wednesday voiced their concerns about the implication of melamine-contaminated milk products on infant and child nutrition and health.
The commerce secretary, Feroz Ahmed, decided not to stop sales of eight brands of powder milk test earlier to have contained melamine until further tests in view of the ‘interests’ of companies and their agents.
The secretary at a news briefing on October 19 said it was up to individuals whether to buy powder milk until further tests.
The UN agencies rather supported the government’s step to communicate with the public on food safety issues, particularly advising citizens on how they could avoid food safety risks associated with milk contamination.
‘Immediate action should be taken to ensure supply of safe dairy products,’ read the statement of the UN agencies, adding they supported the government efforts in addressing the issue of melamine-contaminated powder milk.
The government has already sought help from the Food and Agriculture Organisation to help retest powder milk in question. Joined by the World Health Organisation, FAO said it was ready to support the government in further testing of powder milk samples by internationally certified laboratories.
They urged the government to ensure food safety and quality, especially for powder milk, by enforcing national mandatory food laws and regulations to address evolving issue of food contamination, such as melamine in powder milk.
‘Suitable references need to be made to the Codex and other international standards in this regard. FAO and WHO will continue to provide technical expertise and advice to strengthen the national regulatory framework and build the capacity of the concerned national bodies to ensure consumer protection,’ said the release.
The three agencies, however, noted food safety was not the sole responsibility of public authorities. The food industry, producers and importers are also responsible for ensuring a safe supply of food to consumers.
Referring to concerns expressed by Bangladeshi parents, the UN agencies advised all of them that breastfeeding was the best, safest and most natural way of providing infants with the nutrients they need, and recommended exclusive breastfeeding for the first six months of life.
They, however, pointed out when breast milk was not a viable option, infants up to six months would need to be fed an infant formula designed as a sole source of nutrition for such infants.
They gave opinions against replacing infant formula with other products such as condensed milk, regular milk powder, or fresh liquid milk and said such products would put at risk the safety and nutritional status of this vulnerable group.
The UN agencies stressed the importance of giving this information to all mothers during antenatal and postnatal care.
They called for the full enforcement of the existing code of marketing of breast milk substitutes, approved in Bangladesh in 1984 and amended in 1990.
Offering support for further testing of powder milk samples, the UN agencies on food, health and children’s affairs also reminded not only government authorities but also food producers and importers of their duty to ensure safety of food products.
Local offices of the Food and Agriculture Organisation, World Health Organisation and UNICEF in a statement on Wednesday voiced their concerns about the implication of melamine-contaminated milk products on infant and child nutrition and health.
The commerce secretary, Feroz Ahmed, decided not to stop sales of eight brands of powder milk test earlier to have contained melamine until further tests in view of the ‘interests’ of companies and their agents.
The secretary at a news briefing on October 19 said it was up to individuals whether to buy powder milk until further tests.
The UN agencies rather supported the government’s step to communicate with the public on food safety issues, particularly advising citizens on how they could avoid food safety risks associated with milk contamination.
‘Immediate action should be taken to ensure supply of safe dairy products,’ read the statement of the UN agencies, adding they supported the government efforts in addressing the issue of melamine-contaminated powder milk.
The government has already sought help from the Food and Agriculture Organisation to help retest powder milk in question. Joined by the World Health Organisation, FAO said it was ready to support the government in further testing of powder milk samples by internationally certified laboratories.
They urged the government to ensure food safety and quality, especially for powder milk, by enforcing national mandatory food laws and regulations to address evolving issue of food contamination, such as melamine in powder milk.
‘Suitable references need to be made to the Codex and other international standards in this regard. FAO and WHO will continue to provide technical expertise and advice to strengthen the national regulatory framework and build the capacity of the concerned national bodies to ensure consumer protection,’ said the release.
The three agencies, however, noted food safety was not the sole responsibility of public authorities. The food industry, producers and importers are also responsible for ensuring a safe supply of food to consumers.
Referring to concerns expressed by Bangladeshi parents, the UN agencies advised all of them that breastfeeding was the best, safest and most natural way of providing infants with the nutrients they need, and recommended exclusive breastfeeding for the first six months of life.
They, however, pointed out when breast milk was not a viable option, infants up to six months would need to be fed an infant formula designed as a sole source of nutrition for such infants.
They gave opinions against replacing infant formula with other products such as condensed milk, regular milk powder, or fresh liquid milk and said such products would put at risk the safety and nutritional status of this vulnerable group.
The UN agencies stressed the importance of giving this information to all mothers during antenatal and postnatal care.
They called for the full enforcement of the existing code of marketing of breast milk substitutes, approved in Bangladesh in 1984 and amended in 1990.
India launches first moon mission
India successfully launched its first lunar mission Wednesday, marking a major boost for the country’s space programme and a new step in the fast-developing Asian space race.
Cheers rang out at mission control as the unmanned lunar orbiting spacecraft Chandrayaan-1 was launched with an Indian-built rocket from the Satish Dhawan Space Centre in Sriharikota on the southeastern coast.
Officials said the lift-off, which took place in cloudy skies at 6:22am (0052 GMT), was a ‘great success’, with the rocket placing the craft into a transfer orbit around the globe within 19 minutes.
‘Our scientific community has once again done the country proud and the entire nation salutes them,’ the Indian prime minister, Manmohan Singh said in a message from Japan, where he was on an official visit.
The head of the Indian Space Research Organisation, Madhavan Nair, said it was a ‘historic moment’ for the country.
‘It has been a remarkable performance by the launch vehicle,’ he said of the lift-off from the national space centre in the state of Andhra Pradesh, 80 kilometres north of Chennai.
ISRO is sending the Chandrayaan-1 on a two-year orbital mission to provide a detailed map of the mineral, chemical and topographical characteristics of the moon’s surface. It is expected to reach lunar orbit in 15 days.
The mission, which will also include the sending of a probe onto the lunar surface, will cost India 80 million dollars.
‘Today what we have charted is a remarkable journey for an Indian spacecraft to go to the moon and try to unravel the mysteries of the Earth’s closest celestial body and its only natural satellite,’ Nair said.
India is hoping the mission will boost its space programme into the same league as regional powerhouses Japan and China, and Nair said ISRO was aiming at a manned space flight by 2015, with work on a two-person capsule already underway.
As well as looking to carve out a larger slice of the lucrative commercial satellite launch market, India, Japan and China also see their space programmes as an important symbol of their international stature and economic development.
The launch was carried live on most Indian television channels — with one channel using the theme music for ‘Star Wars’ to accompany the countdown.
Some critics, however, have questioned whether it makes sense to spend so much money on space when hundreds of millions of Indians still live in dire poverty.
India started its space programme in 1963, developing its own satellites and launch vehicles to reduce dependence on overseas agencies.
Cheers rang out at mission control as the unmanned lunar orbiting spacecraft Chandrayaan-1 was launched with an Indian-built rocket from the Satish Dhawan Space Centre in Sriharikota on the southeastern coast.
Officials said the lift-off, which took place in cloudy skies at 6:22am (0052 GMT), was a ‘great success’, with the rocket placing the craft into a transfer orbit around the globe within 19 minutes.
‘Our scientific community has once again done the country proud and the entire nation salutes them,’ the Indian prime minister, Manmohan Singh said in a message from Japan, where he was on an official visit.
The head of the Indian Space Research Organisation, Madhavan Nair, said it was a ‘historic moment’ for the country.
‘It has been a remarkable performance by the launch vehicle,’ he said of the lift-off from the national space centre in the state of Andhra Pradesh, 80 kilometres north of Chennai.
ISRO is sending the Chandrayaan-1 on a two-year orbital mission to provide a detailed map of the mineral, chemical and topographical characteristics of the moon’s surface. It is expected to reach lunar orbit in 15 days.
The mission, which will also include the sending of a probe onto the lunar surface, will cost India 80 million dollars.
‘Today what we have charted is a remarkable journey for an Indian spacecraft to go to the moon and try to unravel the mysteries of the Earth’s closest celestial body and its only natural satellite,’ Nair said.
India is hoping the mission will boost its space programme into the same league as regional powerhouses Japan and China, and Nair said ISRO was aiming at a manned space flight by 2015, with work on a two-person capsule already underway.
As well as looking to carve out a larger slice of the lucrative commercial satellite launch market, India, Japan and China also see their space programmes as an important symbol of their international stature and economic development.
The launch was carried live on most Indian television channels — with one channel using the theme music for ‘Star Wars’ to accompany the countdown.
Some critics, however, have questioned whether it makes sense to spend so much money on space when hundreds of millions of Indians still live in dire poverty.
India started its space programme in 1963, developing its own satellites and launch vehicles to reduce dependence on overseas agencies.
Govt ends food procurement as rice prices fall
The interim administration has ended the internal food procurement drive before the deadline expires on October 31 because of the fall in rice prices in local markets. The mill owners who got ‘incentive bonus’ by supplying rice to the government warehouses even at higher rates are the ones who have profited most, not the hard-working farmers who are the primary producers of rice.
The authorities signed fresh contracts with the mill owners, most in northern districts, for supply of 1,60,000 tonnes of rice within six days for Tk 28 per kilogram, with Tk 1.25 as incentive bonus, though retail prices in the local markets are now lower than the government’s procurement rate. This prompted the food ministry to issue an official order on Monday, asking the Food Directorate not to sign any more contracts with rice suppliers, said official sources.
‘We have ordered the authorities to end the food procurement drive as almost 83 per cent of the total target has already been achieved…Moreover, the rice prices have fallen in the local markets,’ food adviser AMM Shawkat Ali told New Age on Wednesday.
He said the government has already stocked 10,32,371 tonnes of rice, which is the highest in eight years, from the boro procurement drive.
The main objectives of the government’s move to build up the food stock were to have control over market prices and ensure food security.
The food ministry, through another order on Wednesday, set November 10 as the deadline for the mill owners to complete the supply of rice as per the contracts already signed with the government.
The adviser, however, forecast that the rice prices would not fall any further as the import of rice through the private channels has almost come to an end due to higher prices. ‘Moreover, the amount of food support from donor agencies has also fallen,’ he added.
Initially, the government reached agreements with 13,833 mills for supplying 10,17,000 tonnes of food-grains by August 31 this year.
On August 10 the government decided to give mill owners the incentive bonus of Tk 1.25 for each kilogram of rice to expedite the procurement drive as the latter threatened that they would not supply any more rice to the government because the market prices of rice were rising at that time.
‘We will have to spend an additional amount of around Tk 25 crore as incentive bonus for procuring around two lakh tonnes of rice through fresh contracts after August 10 as the market prices of rice fell later,’ said an official.
The government cancelled the licences of around 2,000 rice mills across the country for failing to supply rice as per the agreements, or for not being willing to sign supply contracts, according to official records.
The rice prices at the retailers’ level have now fallen to Tk 27/28 from Tk 30/31 in the northern districts from where the government procures 80 per cent of its total stock of rice and paddy.
Official procurement of boro rice began on April 16, 2008 with a target of 12 lakh tonnes of rice to build a buffer stock for ensuring the country’s food security. The procurement price for rice was set at Tk 28 per kg, up from Tk 18 the previous year. The government also set a target of procuring 3,00,000 tonnes of paddy from growers for Tk 18 and 50,000 tonnes of wheat for Tk 26 per kg.
The authorities signed fresh contracts with the mill owners, most in northern districts, for supply of 1,60,000 tonnes of rice within six days for Tk 28 per kilogram, with Tk 1.25 as incentive bonus, though retail prices in the local markets are now lower than the government’s procurement rate. This prompted the food ministry to issue an official order on Monday, asking the Food Directorate not to sign any more contracts with rice suppliers, said official sources.
‘We have ordered the authorities to end the food procurement drive as almost 83 per cent of the total target has already been achieved…Moreover, the rice prices have fallen in the local markets,’ food adviser AMM Shawkat Ali told New Age on Wednesday.
He said the government has already stocked 10,32,371 tonnes of rice, which is the highest in eight years, from the boro procurement drive.
The main objectives of the government’s move to build up the food stock were to have control over market prices and ensure food security.
The food ministry, through another order on Wednesday, set November 10 as the deadline for the mill owners to complete the supply of rice as per the contracts already signed with the government.
The adviser, however, forecast that the rice prices would not fall any further as the import of rice through the private channels has almost come to an end due to higher prices. ‘Moreover, the amount of food support from donor agencies has also fallen,’ he added.
Initially, the government reached agreements with 13,833 mills for supplying 10,17,000 tonnes of food-grains by August 31 this year.
On August 10 the government decided to give mill owners the incentive bonus of Tk 1.25 for each kilogram of rice to expedite the procurement drive as the latter threatened that they would not supply any more rice to the government because the market prices of rice were rising at that time.
‘We will have to spend an additional amount of around Tk 25 crore as incentive bonus for procuring around two lakh tonnes of rice through fresh contracts after August 10 as the market prices of rice fell later,’ said an official.
The government cancelled the licences of around 2,000 rice mills across the country for failing to supply rice as per the agreements, or for not being willing to sign supply contracts, according to official records.
The rice prices at the retailers’ level have now fallen to Tk 27/28 from Tk 30/31 in the northern districts from where the government procures 80 per cent of its total stock of rice and paddy.
Official procurement of boro rice began on April 16, 2008 with a target of 12 lakh tonnes of rice to build a buffer stock for ensuring the country’s food security. The procurement price for rice was set at Tk 28 per kg, up from Tk 18 the previous year. The government also set a target of procuring 3,00,000 tonnes of paddy from growers for Tk 18 and 50,000 tonnes of wheat for Tk 26 per kg.
Hasina’s release, emergency lifting high on agenda
The Awami League is scheduled to sit with the government for talks today to resolve differences over a number of issues before the parliamentary polls.
The demands for permanent release of AL president Sheikh Hasina and withdrawal of the state of emergency before the polls are high on the agenda of the dialogue, scheduled to start at the Chief Adviser’s Office at 2:30pm.
The AL will reiterate at the talks that it will not contest the elections, scheduled for December 18, if Sheikh Hasina was not released permanently and unconditionally before the polls, party sources said.
AL’s acting president Zillur Rahman will lead the party delegation at its fourth round of talks with the interim government.
Earlier, the party held dialogues with the government on July 3 at the Chief Adviser’s Office, on June 11 at Sheikh Hasina’s Sudha Sadan residence hours after she was released from jail by an executive order for treatment abroad and on April 13 with five advisers to the interim government at the state guest house Meghna.
Talking with reporters on Wednesday, the party’s acting general secretary Syed Ashraful Islam said they hoped that all the problems would be resolved through dialogue. ‘Both sides [AL and the government] want elections on time…There is no hesitation over holding parliamentary polls on time’, he said at his Sher-e-Bangla Nagar residence.
Party sources said that the AL leaders would ask the government to lift the state of emergency before the parliamentary polls, defer upazila polls, withdraw the ‘false and fabricated’ cases filed against Sheikh Hasina and cancel the delimitation of electoral constituencies. It will also renew its call for formation of a constitution commission.
The party will also ask the government to ensure a congenial atmosphere so that all political parties can contest the elections without any reservations and discuss ways to form an effective post-election parliament, the sources added.
The demands for permanent release of AL president Sheikh Hasina and withdrawal of the state of emergency before the polls are high on the agenda of the dialogue, scheduled to start at the Chief Adviser’s Office at 2:30pm.
The AL will reiterate at the talks that it will not contest the elections, scheduled for December 18, if Sheikh Hasina was not released permanently and unconditionally before the polls, party sources said.
AL’s acting president Zillur Rahman will lead the party delegation at its fourth round of talks with the interim government.
Earlier, the party held dialogues with the government on July 3 at the Chief Adviser’s Office, on June 11 at Sheikh Hasina’s Sudha Sadan residence hours after she was released from jail by an executive order for treatment abroad and on April 13 with five advisers to the interim government at the state guest house Meghna.
Talking with reporters on Wednesday, the party’s acting general secretary Syed Ashraful Islam said they hoped that all the problems would be resolved through dialogue. ‘Both sides [AL and the government] want elections on time…There is no hesitation over holding parliamentary polls on time’, he said at his Sher-e-Bangla Nagar residence.
Party sources said that the AL leaders would ask the government to lift the state of emergency before the parliamentary polls, defer upazila polls, withdraw the ‘false and fabricated’ cases filed against Sheikh Hasina and cancel the delimitation of electoral constituencies. It will also renew its call for formation of a constitution commission.
The party will also ask the government to ensure a congenial atmosphere so that all political parties can contest the elections without any reservations and discuss ways to form an effective post-election parliament, the sources added.
Sunday, October 19, 2008
Three children die after taking toxic medicine
Three children of a family died Sunday after taking toxic deworming medicine at Gokornoghat village in Brahmanbaria Sadar upazila.
The deceased were Sharmin, 8, Sharif, 6 and 10-month-old Sonia.
Victims’ mother Halima Begum said she bought a bottle of Ayurvedic deworming medicine from Nikli upazila of Kishoreganj district eight months ago.
She gave the medicine to her three children on Saturday night who were found dead Sunday morning.
Civil Surgeon Dr Nurul Amin has sent a three-member medical team to the village to investigate the incident.
It is suspected that the children died after taking the poisonous Ayurvedic medicine.
The bodies were sent to Sadar hospital morgue for autopsy and police seized the bottle of the medicine.
Two other children of the family survived as they did not take the medicine at night.
Police Super Lutfor Rahman Mondol visited the spot.
The deceased were Sharmin, 8, Sharif, 6 and 10-month-old Sonia.
Victims’ mother Halima Begum said she bought a bottle of Ayurvedic deworming medicine from Nikli upazila of Kishoreganj district eight months ago.
She gave the medicine to her three children on Saturday night who were found dead Sunday morning.
Civil Surgeon Dr Nurul Amin has sent a three-member medical team to the village to investigate the incident.
It is suspected that the children died after taking the poisonous Ayurvedic medicine.
The bodies were sent to Sadar hospital morgue for autopsy and police seized the bottle of the medicine.
Two other children of the family survived as they did not take the medicine at night.
Police Super Lutfor Rahman Mondol visited the spot.
Fuel oil price cuts expected this week
The government is expected to announce cuts in the prices of fuel oils by 5 to 9 per cent anytime this week.
It has sent a proposal for fuel price reduction to the Bangladesh Energy Regulatory Commission for approval, sources in the energy division said.
The price of diesel and kerosene is likely to come down to around Tk 50 per litre from the current price of Tk 55 and the price of octane to Tk 82-84 from Tk 90 and that of petrol to around Tk 80 from Tk 87 per litre, they said.
When contacted, energy secretary Mohammad Mohsin, told New Age on Sunday that they had sent the proposal to the BERC to cut the prices of fuel oils.
The chairman of BERC, Ghulam Rahman, said that they had received the price reduction proposal on Thursday and would make a decision in a day or two after holding a meeting with all members of the commission.
M Tamim, special assistant to the chief adviser, also told New Age that the government might announce price cuts this week.
The officials would not, however, say what would be the exact prices as it had not yet been finalised.
‘The extent of price reduction will be roughly around 10 per cent for all fuel oils. In terms of percentage, the cut in octane and petrol prices will be less as these are used by the affluent sections of the society’, said Tamim.
‘We have given different scenarios of prices. A final decision will be made later’, said Mohsin.
‘The price of diesel and kerosene is most likely to be reduced by around 9-10 per cent to Tk 50 per litre and octane and petrol by around 8 per cent to Tk 80-84 per litre’, a highly placed source in the division told New Age.
Energy officials said that they had already held discussions with communication ministry officials on possible reduction in transport fares after the new oil prices come into effect.
‘We have already held a meeting with the communication ministry and discussed the issue of transport fare reduction. I think the ministry is taking preparations for transport fare cuts when the oil prices are reduced’, Mohsin said.
The government has taken the steps to reduce oil prices on the local market against the backdrop of plummeting prices of oil on the international market which saw prices drop sharply by around 50 per cent – from $141 to $70 – in recent times. The government raised fuel oil prices on the local market by 33-37 per cent when the prices hit record highs on the international market in July this year.
When Tamim was asked why they were going for just around 10 per cent cuts in oil prices after hiking the prices by 33-37 per cent last time, Tamim said, ‘Despite the fall [in oil prices] BPC is still giving some subsidies in diesel and kerosene. After we reduce the prices, we will continue to monitor fuel oil prices on international market. If the current trend continues, we will again review the prices for downward adjustments.’
Mohsin said that when the fuel prices were increased in July, they projected that the BPC’s losses would come down to Tk 10,000 crore from Tk 17,000 crore.
‘After fuel price is decreased on local market, the government will need to give BPC Tk 4,000 crore in subsidy for the current fiscal year. So, at present we cannot afford to reduce prices by more than 10 per cent as it will create budgetary pressure’, he said.
It has sent a proposal for fuel price reduction to the Bangladesh Energy Regulatory Commission for approval, sources in the energy division said.
The price of diesel and kerosene is likely to come down to around Tk 50 per litre from the current price of Tk 55 and the price of octane to Tk 82-84 from Tk 90 and that of petrol to around Tk 80 from Tk 87 per litre, they said.
When contacted, energy secretary Mohammad Mohsin, told New Age on Sunday that they had sent the proposal to the BERC to cut the prices of fuel oils.
The chairman of BERC, Ghulam Rahman, said that they had received the price reduction proposal on Thursday and would make a decision in a day or two after holding a meeting with all members of the commission.
M Tamim, special assistant to the chief adviser, also told New Age that the government might announce price cuts this week.
The officials would not, however, say what would be the exact prices as it had not yet been finalised.
‘The extent of price reduction will be roughly around 10 per cent for all fuel oils. In terms of percentage, the cut in octane and petrol prices will be less as these are used by the affluent sections of the society’, said Tamim.
‘We have given different scenarios of prices. A final decision will be made later’, said Mohsin.
‘The price of diesel and kerosene is most likely to be reduced by around 9-10 per cent to Tk 50 per litre and octane and petrol by around 8 per cent to Tk 80-84 per litre’, a highly placed source in the division told New Age.
Energy officials said that they had already held discussions with communication ministry officials on possible reduction in transport fares after the new oil prices come into effect.
‘We have already held a meeting with the communication ministry and discussed the issue of transport fare reduction. I think the ministry is taking preparations for transport fare cuts when the oil prices are reduced’, Mohsin said.
The government has taken the steps to reduce oil prices on the local market against the backdrop of plummeting prices of oil on the international market which saw prices drop sharply by around 50 per cent – from $141 to $70 – in recent times. The government raised fuel oil prices on the local market by 33-37 per cent when the prices hit record highs on the international market in July this year.
When Tamim was asked why they were going for just around 10 per cent cuts in oil prices after hiking the prices by 33-37 per cent last time, Tamim said, ‘Despite the fall [in oil prices] BPC is still giving some subsidies in diesel and kerosene. After we reduce the prices, we will continue to monitor fuel oil prices on international market. If the current trend continues, we will again review the prices for downward adjustments.’
Mohsin said that when the fuel prices were increased in July, they projected that the BPC’s losses would come down to Tk 10,000 crore from Tk 17,000 crore.
‘After fuel price is decreased on local market, the government will need to give BPC Tk 4,000 crore in subsidy for the current fiscal year. So, at present we cannot afford to reduce prices by more than 10 per cent as it will create budgetary pressure’, he said.
Subscribe to:
Posts (Atom)
Posts
