India's step on containers to benefit Bangladeshi textile industry

According to Fibre2Fashion’s market insight tool TexPro, the Central Board of Indirect Taxes and Customs (CBIC), Government of India, had recently issued a notification about the decision. It said that various ministries and trade bodies requested CBIC to allow movement of containerised cargo from Bangladesh into India by rail. Bangladeshi High Commissioner in New Delhi also requested for the same.

Previously, containers going from India to Bangladesh by rail were returning empty after delivering India’s export goods there. Hence, Bangladeshi companies had expressed interest to use such empty containers to export their products to India.

CBIC said that the carrier will be the trains of Indian Railways plying between India and Bangladesh carrying India’s containerised export goods to Bangladesh (forward Journey) and returning with Bangladesh’s export goods in the same containers (return journey). In both journeys, the trains will cross the international border through one of the specified Land Customs Stations with rail route, namely, Petrapole-Benapone and Gede-Darshana.

Industry sources said that the move would be beneficial for the textile industry, particularly because Bangladesh is a sourcing market for Indian industry for large number of finished and intermediary items. Sanjay Jain, Managing Director from TT Limited, told Fibre2Fashion, “It is beneficial for Bangladesh industry as it will reduce their logistics cost and lead time. Bangladesh exports garments and many other intermediary items to India.”

Industry experts said that rail route is the most preferred channel for someone importing from Bangladesh. Since land route is shorter compared to sea route, freight charges are lower. Bangladeshi exporters can expect lower cost of logistics as return journey of containers will be cheaper.

Fibre2Fashion News Desk (KUL)