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Newsprint prices swelling

Acute crisis for newspapers & publishing houses

By Shehab Ahmed
Newsprint prices have been rising over the past six months, making it difficult for newspapers and publishing industries to cope with the situation.
Newsprint of Khulna Newsprint Mill (KNM) now sells at Tk 30.800 per tonne In the city market.
Marker sources said the ex-niiil price of KNM newsprint has been raised to Tk 29.800 from Tk 25.000 per tonne. The
price of imported newsprint also rose to Tk 53,300 - Tk 55.000 from Tk 34.000. depending on quality, they said yesterday.
They said the crisis is due to a slump in production in KNM. run by Bangladesh Chemical Corporation (BCIC), creating an opportunity for importers to raise the prices.
But Importers said that they did not raise the prices on their
own. Newsprint price rose to 1040 dollars per tonne (C&F Chittagong) in June from 650 dollars in December, they claimed.
Fluctuation in Dollar-Taka value and imposition of 5 per cent supplementary duty in February also added to the price rise in retail market, they added.
The crisis began to build up at the beginning of the year when KNM started faltering in production.
As the state owned KNM counted Its bank Interest and other dues, a section of its workers last month ransacked the residences of its Managing Director and some trade union leaders and looted valuables for no^gc,ting salary since April.
The mill is closed since July 1 after producing 20-22 tonnes of low grade newsprint against its normal production of 100 tonnes per day earlier
KNM sources said they were unable to continue production due to non-avallability of pulp. The mill, not overhauled for long, was already limping with huge burdens of bank loans and electricity bills.
Officials of the Industries Ministry and the BCIC were not available for comment.
The situation led to an exodus of trained and skilled manpower from the mill to a private gaper mill being set up in hola.
KNM however imported 90 tonnes of pulp, which arrived at Mongla |»rt on Thursday.
So long, its authorities tried to keep the mill running somehow by using locally procured Gewa tree, resulting in production of poor quality newsprint.
To pay the workers and the cost of inqxjrted pulp. KNM authorities recently released some of its stock. A few truckloads of newsprint reached Dhaka front Khulna on Wednesday.
But the scanty supply failed to make any Impact on prices Market sources said, unless there Is more supply from KNM. the market will remain unstable.
They said prices have gone up in the Scandinavian countries from where bulk of the newsprint comes. Besides, there has been less supply from South Korea. Asia's biggest newsprint producer, contributing to price rise In the international market.
They said prices of imported newsprint will not come down unless the government reduces duties. There are 15 per cent Import duty, five per cent sup-
elementary duty, 15 per cent /AT and 7.50 per cent other taxes and duties on Import of newsprint.
The government recently withdrew the Tk 5000 enhanced price of KNM-produced newsprint along with VAT following demands from the newspaper Industry and publishers.
Newspapers are the worst sufferers. Prices of some Bangla language dailies have been raised to Tk seven from Tk six. But English language dallies are still sold at Tk 6 although a 1 ftpage newspaper published with Imported newsprint costs more than double the price.
Analysts say. newspaper [nibltshcrs will be unable to ceep the prices at this level, and a price rise is most likely in near future.