Indian media report slammed as false

'BD rerouting textile exports thru Maldives'

FE REPORT | Published: November 02, 2024 23:35:25

Stakeholders concerned here have termed a Saturday report of an Indian business daily regarding Bangladesh's rerouting of its textile exports through Maldivian ports "false and fabricated".
The Mint reports that Bangladesh is redirecting textile exports to the Maldives by sea and then dispatching cargoes by air to global clients like H&M and Zara.
It says Bangladesh, one of the largest garment producers, has opted to bypass India and ship its textile exports through the Maldives for onward distribution to global markets, hurting the cargo revenue prospects of India's airports and ports amid strained bilateral ties.
The report has cited three people "who are aware of the development".
"Previously, Bangladeshi goods were shipped through Indian airports, but now they are rerouting shipments from other locations. This shift means India's airports and ports lose revenue previously earned from handling these cargoes," the Delhi-based daily quoted Deepak Tiwari, managing director of MSC Agency (India) Pvt Ltd, as saying.
However, a local official working in Mediterranean Shipping Company (MSC), a leading global container shipping company, rejects outright such development.
"We, at MSC Bangladesh, never ever received any such cargoes destined for the Maldives for onward distribution to global markets," he told the FE.
The official thinks sending cargoes from Bangladesh by ship to Colombo and from there to the Maldives and thereafter to Europe or in the United States by air is not financially viable.
When asked, Ziaur Rahman, regional country manager at H&M in Bangladesh, told the FE that they did not send goods by air, saying: "H&M doesn't airlift goods."
"H&M doesn't have any air forwarder. We sometimes make air shipment in case of special campaign. The volume of air shipment is less than 1.0 per cent."
The Mint reports, "The redirection of textile exports could weaken trade relations between India and Bangladesh and reduce the collaborative opportunities in logistics and infrastructure projects. It could also potentially threaten India's revenue from port and transit fees, alongside business generated from Bangladesh's exports that pass through Indian borders."
Seized by the issue, the Indian government is exploring a balanced solution to ensure that Bangladesh's textile exports-significant in volume and linked to Indian manufacturing hubs in Bangladesh-remain beneficial to Indian interests, the report cited, referring to one unnamed person.
"The issue is under the government's attention. We are currently reviewing its impact on India," it said, citing another unnamed person.
The report further mentioned referring to some industry experts that Bangladesh took this step to gain greater control over its supply chain and meet its shipment deadlines by avoiding delays caused at India's airports.
"This new route offers Bangladesh a strategic advantage along with improved reliability, which is crucial for meeting tight deadlines in the international clothing market," the Mint quoted Arun Kumar, president of the Association of Multimodal Transport Operators of India, as saying.
"Furthermore, by avoiding reliance on Indian ports, Bangladesh is ensuring greater control over its supply chain."
It also quoted an Indian textile exporter who has a different perspective on the rerouting of exports by Bangladesh.
"There's nothing to read into this. Indian airports are already congested, and we had also requested the government to restrict Bangladeshi textiles from passing through Indian airports," the Mint quoted Anil Buchasia, executive member (eastern region), Apparel Export Promotion Council, as saying.
While talking to The Mint, a third person aware of the development has dismissed suggestions that the move was linked to the ouster in August of former Bangladesh premier Sheikh Hasina, who is currently staying in India.
"The government doesn't see this as a reaction to Sheikh Hasina's asylum. Textiles are the backbone of Bangladesh's economy, so they must have made this decision to promote their textile exports," said the person.
Citing a media report, The Mint said Maldives Airports Company Ltd offers a sea-to-air cargo transshipment service, which allows goods to be transported to the Maldives by sea and then flown to global destinations.
Started in March 2024, the inaugural shipment consisted of garments from Bangladesh, which arrived in the Maldives by sea and were flown to Germany via Turkish Airlines in May.
When contacted, Bangladesh Freight Forwarders Association vice-president Nasir Ahmed Khan said: "This is a false claim" made by the Indian newspaper.
There is no direct shipping service from Bangladesh to the Maldives. Sending goods there from Chittagong to the Maldives via Colombo will require at least 10 days, according to him.
"Air lifting of cargoes from Maldives to the US and Europe would not be financially viable," he told the FE.
According to Mr Khan, such shipment can take place occasionally when Dhaka airport becomes jam packed and tariff rate goes very high.
syful-islam@outlook.com