September 24, 2022
  • September 24, 2022

India’s step on containers to benefit Bangladeshi textile industry

By on June 1, 2022 0
The Indian government has recently allowed the export of Bangladeshi goods in closed containers, which normally return empty by rail after delivering Indian export goods to the neighboring country. This step will help the Bangladeshi textile industry reduce logistics costs and lead times while supplying its products to Indian buyers.

According Fibre2Fashion’s market analysis tool, TexPro, the Central Board of Excise and Customs (CBIC) of the Government of India had recently issued a notification regarding the ruling. He said various government departments and trade bodies have applied to the CBIC to allow containerized cargo to be transported by rail from Bangladesh to India. The Bangladeshi High Commissioner in New Delhi has also requested the same.

Previously, containers going from India to Bangladesh by rail returned empty after delivering Indian export goods there. Therefore, Bangladeshi companies had expressed their interest in using these empty containers to export their products to India.

The Indian government has recently allowed the export of Bangladeshi goods in closed containers, which normally return empty by rail after delivering Indian export goods to the neighboring country. This step will help the Bangladeshi textile industry reduce logistics costs and lead times while supplying its products to Indian buyers.

The CBIC has stated that the carrier will be the Indian Railways trains running between India and Bangladesh carrying the containerized export goods from India to Bangladesh (one way trip) and returning with the export goods from Bangladesh in the same containers (return trip). In both journeys, the trains will cross the international border through one of the land customs stations specified with a rail route, namely Petrapole-Benapone and Gede-Darshana.

Industry sources said the move would be beneficial for the textile industry, especially because Bangladesh is a supply market for Indian industry for a large number of finished and intermediate items. Sanjay Jain, Managing Director of TT Limited, said Fibre2Fashion, “It is beneficial for the Bangladeshi industry as it will reduce its logistics costs and lead times. Bangladesh exports garments and many other intermediate items to India.

Industry experts have said that the railway is the preferred channel for someone importing from Bangladesh. Since the land route is shorter than the sea route, the transportation cost is lower. Bangladeshi exporters can expect lower logistics costs as the return container trip will be cheaper.

Fibre2Fashion (KUL) Press Office