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The country’s apparel sector leaders sought the interim government’s diplomatic intervention over export ban imposed by India so that all ongoing work orders are exempted from the ban.
They also requested for deferment of the ban’s implementation for at least three months.
Mohammad Hatem, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), wrote to the commerce ministry on Wednesday in this connection.
India on May 17 imposed the ban on export of certain goods, including ready-made garments, from Bangladesh through its land ports just a month after Bangladesh had restricted yarn import through the same route.
“Land ports play a pivotal role in facilitating bilateral trade between Bangladesh and India. These ports not only reduce transportation time but also significantly lower costs compared to seaports,” Mr Hatem said in the letter.
About 80 per cent of exports through land ports are conducted via the Benapole land port, he said.
Citing data, he added that goods worth Tk 128.11 billion were exported during last ten months while around Tk 80 billion worth of ready-made garments shipped during the last eight months.
“The current ban poses severe risks to trade and economic relations. Many goods are now stranded at land ports, and additional consignments are under production,” he said, adding that export letters of credit (LCs) have been opened and committed, and delays will lead to cancellations, financial losses, and long-term reputational damage.
The BKMEA leader urged the government’s intervention to initiate formal communication with the Indian government urging them to provide a minimum notice period of three months and to exempt ongoing export consignments from the scope of the ban.
When asked, Fazlee Shamim Ehsan, executive president of BKMEA, said they had around US$120 million worth of ongoing work orders.
He said they also had business to business communication in this regard.
Export Promotion Bureau (EPB) and commerce ministry already convened two separate meetings last week to assess the implications and determine an appropriate course of action, he said. Stakeholders in the meetings strongly recommended government-level engagement with Indian counterpart to seek deferment of the ban for at least three months and keeping ongoing export orders outside the restriction purview.
According to data from EPB and the central bank, Bangladesh exported goods worth US$1.56 billion in the last fiscal year. Its imports from India stood at US$9.0 billion having a trade deficit of US$7.43 billion.
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