India imports less from Bangladesh

[eastwatch]

Export to India slides - bdnews24.com

Export to India slides
Asaduzzaman Asad, bdnews24.com
Published: 2013-09-06 16:17:59.0 BdST Updated: 2013-09-06 16:18:05.0 BdST

Benapole land port is witnessing a sharp fall in the export of Bangladeshi goods to India as value of Indian rupee is gradually falling against taka.

According to the informed sources the Indian importers are losing interest to import goods from Bangladesh because of rupee’s downfall.

Benapole customs officials said the rate of daily export to India through Benapole land port has come down to one/fourth of the usual trading in the last one month.

Benapole check post Customs’ Cargo unit Revenue Officer Kamrul Hasan told bdnews24.com that in the last five days, between Sept 1 and Sept 5, total of 362 trucks carrying Bangladeshi goods went to India through Benapole port.

“But usually 250 to 300 trucks used to take consignments to India daily even one month ago,” he said.

Proprietor of an Indian import company Ms. Akash De, Laxman De told bdnews24.com, “We have lost interest in importing Bangladeshi goods as the dollar price has become unstable.”

“We are not making any profit by importing goods from Bangladesh. Under current situation, Bangladeshi businessmen are making profit.”

Laxman said Bangladeshi businessmen would now make more profit by importing even if they are facing trouble because of the drop in export.

Benapole border money market President and proprietor of Raza-Badsha Money Changer ‘Bashar’ said Bangladeshi taka is gaining against Indian rupee as rupee’s price is falling against dollar.

He told bdnews24.com: “On Thursday, Rs 82 was traded for Tk 100 at the money exchanges here.”

It was Rs 57 against Tk 100 at the end of 2012, Bashar said.

However, rupee’s continuous fall is already effecting Bangladesh’s economy, said Matiar Rahman, President of the Benapole chapter of India-Bangladesh Exporters and Importers Association.

He told bdnews24.com: “Every year we import Indian goods equivalent to $5 billion. But the cost has reduced by 10 percent at present for importing the same amount of goods.”

But there will be a negative effect too as Indian importers have decreased importing through Benapole port, Matiar said.

Benapole Port Exporters-Importers Association Joint Secretary Mohsin Milon said usually Bangladesh exports readymade clothes, frozen foods, jute, jute products, leather and agricultural goods to India.

Bangladesh on the other hand imports cars, clothes, industrial chemicals, raw materials and many other goods.

 

[Skallagrim]

INR would appreciate against USD with time because of less import and more export and inward remittance flow. Also prices will increase because of costlier (in terms of INR) import of energy and any raw materials. So any advantage of weaker Rupee will be short-lived. OTOH, BD's trade balance with India will tilt further towards India's favor in the mean time. Our export is decreasing and import is supposed to be increasing because of lower costs though the news report doesn't mention this. We'd import costlier items that we didn't afford earlier. Some of these would be luxury items with no productive value and we would lose more dollars in this process. Srilanka anticipated this and they required their importers to maintain 100% LC margin (in stark contrast with previous 20 to 30%) with certain commodities to discourage their import.

 

[Jai_Hind]

INR would appreciate against USD with time because of less import and more export and inward remittance flow. Also prices will increase because of costlier (in terms of INR) import of energy and any raw materials. So any advantage of weaker Rupee will be short-lived. OTOH, BD's trade balance with India will tilt further towards India's favor in the mean time. Our export is decreasing and import is supposed to be increasing because of lower costs though the news report doesn't mention this. We'd import costlier items that we didn't afford earlier. Some of these would be luxury items with no productive value and we would lose more dollars in this process. Srilanka anticipated this and they required their importers to maintain 100% LC margin (in stark contrast with previous 20 to 30%) with certain commodities to discourage their import.

THANK YOU bangladesh