India transshipment facilities need to be reviewed
A SHARP decline in Bangladesh’s export to north-eastern states of India through the Akhaura frontiers, as New Age reported on Thursday, has only proved to be true the fears that exporters here earlier raised. When the transshipment of Indian goods through Bangladesh river and land ports began this June and when the first Indian consignment of rice, on a trial basis, reached Agartala from Kolkata through Ashuganj and Akhaura in August 2014 paving the way for regular a transit, it was feared that such a transshipment agreement, which Delhi sought fervently as it would cut down the distance the consignments would need to travel, from 1,650km to 350km, and, thus, minimise the transport cost, would have a negative impact on Bangladesh’s export to India’s north-eastern states. Bangladesh until June this year exported about 40 items such as cement, plastic products, corrugated iron sheets, mild steel rod, stone and fish. The number of trucks carrying exportable items to India came down from between 100 and 150 a day to between 10 and 15 a day. Bangladesh could export items to the Indian north-eastern states as some commodities, which Bangladesh exported, were in short supply. Now that India could ferry the commodities there through Bangladesh, the need for export just declined.
Bangladesh, which earlier ignored the recommendation of its Tariff Commission to set Tk 1,058 a tonne in transit fee, gets only Tk 192.22 a tonne. India, moreover, has slapped
Tk 5,000 in import taxes for a tonne of Bangladeshi exportable goods while Indian merchants could ferry their goods from their one part to another, through the Bangladesh territory, by spending a maximum of Tk 3,000. Such propositions are, naturally, enough for Bangladeshi products not to enter the north-eastern states of India. The shipping minister who inaugurated the transit in June said that the facilities afforded to India would bring Bangladesh benefits and the economic adviser to the prime minister said that transit facilities to India would boost trade among the countries in the region. But nothing in this direction has happened. While transshipment facilities that Dhaka afforded to New Delhi has visibly reduced the volume bilateral trade, small-time traders who locally did some business around the Akhaura land port now appear to have been disappointed as the port and the trading or growth centres around the port look mostly deserted. It was obvious that transshipment facilities for India could lead the situation to this extent and the only problem is that Bangladesh authorities should have looked into all such issues before granting India the facilities and wrench out a win-win situation.
What has come about in such a short period, happening after this June, could put the interest of Bangladesh in further jeopardy as days would roll on. The government, under the circumstances, has but one path to tread to this end. It must cast off its capitualistic policy and revise the agreement after a thorough review of all aspects involving financial matters and export possibilities so that national interest could be safeguarded.
http://www.newagebd.net/article/763/india-transshipment-facilities-need-to-be-reviewed
A SHARP decline in Bangladesh’s export to north-eastern states of India through the Akhaura frontiers, as New Age reported on Thursday, has only proved to be true the fears that exporters here earlier raised. When the transshipment of Indian goods through Bangladesh river and land ports began this June and when the first Indian consignment of rice, on a trial basis, reached Agartala from Kolkata through Ashuganj and Akhaura in August 2014 paving the way for regular a transit, it was feared that such a transshipment agreement, which Delhi sought fervently as it would cut down the distance the consignments would need to travel, from 1,650km to 350km, and, thus, minimise the transport cost, would have a negative impact on Bangladesh’s export to India’s north-eastern states. Bangladesh until June this year exported about 40 items such as cement, plastic products, corrugated iron sheets, mild steel rod, stone and fish. The number of trucks carrying exportable items to India came down from between 100 and 150 a day to between 10 and 15 a day. Bangladesh could export items to the Indian north-eastern states as some commodities, which Bangladesh exported, were in short supply. Now that India could ferry the commodities there through Bangladesh, the need for export just declined.
Bangladesh, which earlier ignored the recommendation of its Tariff Commission to set Tk 1,058 a tonne in transit fee, gets only Tk 192.22 a tonne. India, moreover, has slapped
Tk 5,000 in import taxes for a tonne of Bangladeshi exportable goods while Indian merchants could ferry their goods from their one part to another, through the Bangladesh territory, by spending a maximum of Tk 3,000. Such propositions are, naturally, enough for Bangladeshi products not to enter the north-eastern states of India. The shipping minister who inaugurated the transit in June said that the facilities afforded to India would bring Bangladesh benefits and the economic adviser to the prime minister said that transit facilities to India would boost trade among the countries in the region. But nothing in this direction has happened. While transshipment facilities that Dhaka afforded to New Delhi has visibly reduced the volume bilateral trade, small-time traders who locally did some business around the Akhaura land port now appear to have been disappointed as the port and the trading or growth centres around the port look mostly deserted. It was obvious that transshipment facilities for India could lead the situation to this extent and the only problem is that Bangladesh authorities should have looked into all such issues before granting India the facilities and wrench out a win-win situation.
What has come about in such a short period, happening after this June, could put the interest of Bangladesh in further jeopardy as days would roll on. The government, under the circumstances, has but one path to tread to this end. It must cast off its capitualistic policy and revise the agreement after a thorough review of all aspects involving financial matters and export possibilities so that national interest could be safeguarded.
http://www.newagebd.net/article/763/india-transshipment-facilities-need-to-be-reviewed
