The government is examining the reasons behind significant fall of export to India in last fiscal year though Bangladesh has been enjoying duty free market access there, official sources said.
The ministry of commerce (MoC) has started working on identifying the causes that resulted in fall of export by over 100 million US dollar to the neighbouring nation.
In fiscal year (FY) 2013-14, Bangladesh exported goods worth US$456 million, less by $107 million from $563 export in FY 2012-13. The export volume was $512 million in FY 2010-11 when India granted duty free access of all but 25 items of Least Developed Countries (LDCs). Bangladesh's export came down slightly to $498 million in FY 2011-12 after its goods started enjoying duty free access to India.
Sources said commerce ministry officials recently sat with Bangladeshi exporters to find out the causes behind the significant fall of export but could not identify the reasons.
A senior MoC official told the FE that supply side constraint of Bangladeshi exporters and existing non-tariff and para-tariff barriers of India might have led to the export drop in last fiscal.
"India did not impose new non-tariff and para-tariff barriers in the recent years. So, we can't blame these barriers behind the last year's export fall. May be there are many other reasons which we could not identify so far," he said.
The official said he will sit or consult with the exporters again to identify and remove the obstacles so that export can be raised taking the advantage of the duty free access facility offered by the giant neighbour.
Director of India-Bangladesh Chamber of Commerce and Industry Anwar-ul Alam Chowdhury Parvez told the FE Sunday that there are three reasons behind Bangladesh's export fall to India.
He said during the last couple of months Bangladesh's currency was strong while Indian rupee was comparatively week. As a result, Indian traders were less interested to import from Bangladesh.
Mr Parvez, also managing director of Evince Textiles Limited, and former president of Bangladesh Garment Manufacturers and Exporters Association, said though India granted duty free access for Bangladesh products, the non-tariff and para-tariff barriers are seriously hindering export to the country.
He said major Indian importer Liliput Kids-ware is not paying due import bill of some Bangladeshi manufacturers for years which led to closure of some garment factories. "Governments of both countries intervened several times to realise the money from the importer but failed. As a result, Bangladeshi exporters feel discourage to export to India as there is no surety of getting money back," he added.
Mr Parvez also said apparel export to India is not much profitable since the size of order in design and pattern wise is not big. "So, apparel manufacturers here feel little interest to export to India."
© 2024 - All Rights with The Financial Express
