Dhaka seeks Yangon gas for fertiliser plant

Dhaka proposed that Yangon supply gas for a fertiliser plant in Bangladesh and the produce would then be sent back across the border.
The proposal was made at the second Bangladesh-Myanmar Joint Trade Commission meeting at a Dhaka hotel yesterday.
Held after three years, the commission also mulled possible expansion of border-trade, land leases and contract farming, boosting of pharmaceutical exports and easing Myanmar visa restrictions for Bangladeshi traders.
"We have given Myanmar a concrete proposal to utilise its gas to produce fertiliser here in Bangladesh. Later the fertiliser would be exported to Myanmar," said commerce secretary Feroz Ahmed to reporters after the commission met at a city hotel.
The proposal comes after gas was discovered in the bordering Rakhaine area in Myanmar.
Feroz said the proposal would not only help meet the huge and growing demand for urea fertiliser in Myanmar but also move towards reducing the trade gap between the two countries.
He, however, added that Myanmar is keen on building the factory on their side of the border, but Dhaka maintains that Bangladesh has better expertise, infrastructure and resources for the project.
The two sides have also agreed to correct trade figures, as Dhaka and Yangon differ on the bilateral trade volume. Dhaka says bilateral trade is $35 million while Yangon says it is $60 million.
The commerce secretary said Bangladesh has okayed a Myanmar proposal to raise the letters of credit (LC) ceiling to $20,000 from the current $10,000 under the border-trade agreement.
Dhaka also asked Myanmar to ease visa procedures for Bangladeshi traders and expedite registration for Bangladeshi exports.
On contract farming, the two sides agreed to harmonise their procedures and contract mechanisms.
Brig Gen Aung Tun, deputy commerce minister of Myanmar, led the visiting delegation, comprising senior commerce ministry officials.