Indian Textile industry seeks steps to control garment imports from Bangladesh

[Black_cats]

Textile industry seeks steps to control garment imports from Bangladesh

SPECIAL CORRESPONDENT
COIMBATORE, MARCH 03, 2018 00:00 IST
UPDATED: MARCH 03, 2018 03:48 IST

http://www.thehindu.com/todays-pape...t-imports-from-bangladesh/article22914462.ece

The textile industry here has sought measures to control garment imports from Bangladesh, which is on the increase.

Members of Indian Texpreneurs Federation met the Union Minister for Commerce and Industry in New Delhi recently and explained the problems faced by the industry because of higher garment imports. They said the government should tweak the rules of origin for import of garments from Bangladesh so that the garment makers in that country used Indian yarn and fabric in the garments to be exported to India. This will give a boost to export of yarn and fabric from India and also prevent China from taking advantage of the agreement to indirectly increase its exports to India.

The members explained to the Minister that allowing duty free import of apparels from countries such as Bangladesh under South Asian Free Trade Area (SAFTA) and other least developed countries is indirectly benefiting China.

These countries do not have adequate domestic production of yarn and fabric and source substantially from China.

The quantitative restrictions on duty free imports from Bangladesh was lifted in 2010. After that, garment exports from there to India grew 67 % between 2006 to 2010 and 98 % from 2010 to 2014. In the next financial year, it increased 27.8 %, and then by 17 %. There was a slight drop in 2016-2017. However, data available for the first six months of the current financial year shows a revival in garment imports from Bangladesh.

While India can continue to support the least developed countries, it should impose rules of origin and ensure that Indian yarn and fabric manufacturers also benefit, they said.

 

[BATMAN]

Bangladesh should reciprocate hard.

 

[Black_cats]

India's apparel imports from Bangladesh growing fast pace

http://www.fibre2fashion.com/news/a...desh-growing-fast-pace-240922-newsdetails.htm

3rd Mar 2018
Apparel imports from Bangladesh into India are growing at a fast pace, and this trend is actually helping China’s textile exports, the Indian Texpreneurs Federation (ITF) has said in a letter to Union commerce minister Suresh Prabhu. ITF suggested tweaking rules of origin to make the use of yarn and fabrics of Indian origin mandatory for duty-free access.



“India’s apparel imports from Bangladesh grew 27.8 per cent in FY15 and 17 per cent in FY16. Though it dropped 2.7 per cent in FY17 because of the slowdown in India’s overall imports, it has resumed pace in FY18 if imports in the first half of the fiscal are any indication,” the letter said.

Since Bangladesh does not produce enough fabrics domestically, allowing duty-free quota-free import of apparel from Bangladesh (under SAFTA) is indirectly helping China. Moreover, it is also slowly and softly killing India’s domestic textile value chain comprising apparel-fabrics-yarn-fibre, an ITF delegation said during their meeting with Prabhu this week.

The delegation comprising Prabhu Dhamodharan, convenor, ITF; ManojKumar, board member, ITF; Dhanapal, board member, ITF; and Sudhakar Kasture, trade expert & advisor, ITF suggested tweaking SAFTA rules of origin to make the use of yarn and fabrics of Indian origin mandatory for allowing duty-free quota-free market access to Bangladesh and other least developed countries (LDCs).

India will not be the first country to impose such sourcing restrictions for allowing duty-free imports of apparel. The US has imposed sourcing restriction under NAFTA for accepting duty free import of garments from Mexico and other NAFTA members. The Asean-Japan FTA also mandates apparel exporters based in Asean countries to use fabrics and other raw material either made in Japan or any of the Asean countries to avail preferential trade regime, the delegation said.

ITF is appointing one expert firm to prepare a report on “Competition analysis study for Textiles Sector FTAs & Growth Prospects’’. The firm will prepare a report in next 60 days and it will be submitted to both the commerce and textile ministries. (RKS)

Fibre2Fashion News Desk – India

 

[Chhatrapati]

Bangladesh should reciprocate hard.

How?

 

[bluesky]

Textile industry seeks steps to control garment imports from Bangladesh

@Nilgiri, I have told you recently that India systematically put hindrance to BD products to its own market, but keeps on talking about free market when it exports its shoddy products to BD. India must open its market to see how international grade BD products oust the Indian local market by virtue of quality. Indians should eat more protein to compete against our products manufactured by non-vegetarian girls. Shame on you, Indians!!!

 

[Tanveer666]

Bangladesh should reciprocate hard.

i

@Nilgiri, I have told you recently that India systematically put hindrance to BD products to its own market, but keeps on talking about free market when it exports its shoddy products to BD. India must open its market to see how international grade BD products oust the Indian local market by virtue of quality. Indians should eat more protein to compete against our products manufactured by non-vegetarian girls. Shame on you, Indians!!!

isn't he banned,bhai?

this trend is actually helping China’s textile exports

How so? AFAIK, most of the raw materials are imported from uzbekistan (or maybe kazakhistan)

 

[bluesky]

isn't he banned,bhai?

Yes, he is banned. But, I will not be surprised if other Indians shy away from taking the bait.

 

[Chhatrapati]

India must open its market to see how international grade BD products oust the Indian local market by virtue of quality.

Dumping of dresses and garments. I can give you that.

The hindrance is to prevent re-export of Cheap Chinese products that may flood the market taking advantage of any FTA. As seen with Sri Lanka, and it's spice export to India by re-exporting goods from Vietnam. Pulling down prices in the local market.

 

[bluesky]

Dumping of dresses and garments. I can give you that.

The hindrance is to prevent re-export of Cheap Chinese products that may flood the market taking advantage of any FTA. As seen with Sri Lanka, and it's spice export to India by re-exporting goods from Vietnam. Pulling down prices in the local market.

BD sells its products at competitive rates and do not dumb because the GoB will not compensate the companies if they sell cheaper than the production cost.

No way, we are unable to re-export Chinese goods because BD produces cheaper than China. You guys will be making excuses all the time. Indian posters here brag about their economic standard, but their country is fearful of free competition by a tiny BD.

 

[Chhatrapati]

BD sells its products at competitive rates and do not dumb because the GoB will not compensate the companies if they sell cheaper than the production cost.

No way, we are unable to re-export Chinese goods because BD produces cheaper than China. You guys will be making excuses all the time. Indian posters here brag about their economic standard, but their country is fearful of free competition by a tiny BD.

What's the big competition you are talking about India and BD?

You can re-export products from China. You are just talking without any materials. Keep the bragging up.

 

[TopCat]

Dumping of dresses and garments. I can give you that.

The hindrance is to prevent re-export of Cheap Chinese products that may flood the market taking advantage of any FTA. As seen with Sri Lanka, and it's spice export to India by re-exporting goods from Vietnam. Pulling down prices in the local market.

Did you hear the minimum value addition term to avail any duty waiver?

 

[Chhatrapati]

Did you hear the minimum value addition term to avail any duty waiver?

Not every item comes under waver. There are specific items that get a waiver.

 

[HariSinghNalwa]

Rules of origin should apply and now Bangladesh about to become non LDC so those free tarriffs should be reapplied

 

[Shorisrip]

Rules of origin should apply and now Bangladesh about to become non LDC so those free tarriffs should be reapplied

It's not India being nice to Bangladesh because its an "LDC", but rather because of the SAFTA agreement under SAARC. If India repeals SAFTA, India will suffer more since the trade balance is in favour of India. Cannot believe your ignorance.

 

[Homo Sapiens]

I have said it all along, business with benya is not easy.