Bangladesh : RMG exports to India in critical phase
Write:
Abraham [2011-05-20]
Duty free export of 6 million pieces of readymade garment to India is entering an important phase early next week.
Yet, success of the deal will depend on proposition of the agreement to be finalized on the basis of memorandum drafted earlier.
One of the demands raised by India is that Bangladesh should give details of month-wise and product-wise scheduled shipment of the garments and route used for exports in October for every forthcoming calendar year.
But experts believe that exporters may not be able to provide such advance and detailed information for coming year.
They also pointed out that even Sri Lanka was not able to expand their exports to India because of such compliance requirements.
Another major concern is export routes as it includes eight border custom stations, leaving no scope for exporting apparels directly to India.
Even conversion rate of fabrics to apparels should be maximized as industry has to import half of fabrics required for production from Indian suppliers.
On these issues, all private players are invited to take part in inter-ministerial meeting in commerce ministry early next week.
Government may also put forward some alternative proposals if existing ones appear to be unfavourable.