Move to export cement bags to India fails
Jasim Uddin Haroon
The country's first move to export cement bags to India has ultimately failed following a resistance from Khasi tribe in Meghalaya in India, leading to huge financial losses by a local company, sources said.
Shovon Woven Bag Manufacturing Company, the country's leading cement bag maker, signed an agreement with Kolkata-based Calcom Cement in India to supply 36 million pieces of bags worth US$ 7.0 million a year.
The local company had shipped 300,000 pieces of cement bags to India a couple of months back. But the goods were sent back by the Indian authority saying tribal leaders are opposing Bangladesh's goods.
Narayanganj-based Shovon Bag Manufacturing Company was later forced to sell the bags as scrap.
When contacted, Mr. Ziaul Hoque Shovon, a director of the local company told the FE: "We're not interested to share this with journalists."
He said: "We're not exporting bags to India," he said.
Officials said the company incurred financial losses worth nearly 60,000 dollars in the first consignment following the cancellation of the shipment.
However, managing director of Calcom Cement visited Dhaka recently to discus the issue.
"Both the sides have failed to reach any solution on the deal," said a senior official of the local company.
In the meantime, Shovon Bag is now planning to lodge a complaint to a body monitoring Dhaka-Delhi trades.
Earlier, Calcom approved the samples of 9,000 pieces.
Analysts said this export could diversify Bangladesh's export basket and subsequently reduce the trade gap that exists between the two nations, which is highly tilted in favour of India.
Bangladesh imports goods from India worth over $ 2.0 billion and exports around $250 million a year.
Move to export cement bags to India fails
Jasim Uddin Haroon
The country's first move to export cement bags to India has ultimately failed following a resistance from Khasi tribe in Meghalaya in India, leading to huge financial losses by a local company, sources said.
Shovon Woven Bag Manufacturing Company, the country's leading cement bag maker, signed an agreement with Kolkata-based Calcom Cement in India to supply 36 million pieces of bags worth US$ 7.0 million a year.
The local company had shipped 300,000 pieces of cement bags to India a couple of months back. But the goods were sent back by the Indian authority saying tribal leaders are opposing Bangladesh's goods.
Narayanganj-based Shovon Bag Manufacturing Company was later forced to sell the bags as scrap.
When contacted, Mr. Ziaul Hoque Shovon, a director of the local company told the FE: "We're not interested to share this with journalists."
He said: "We're not exporting bags to India," he said.
Officials said the company incurred financial losses worth nearly 60,000 dollars in the first consignment following the cancellation of the shipment.
However, managing director of Calcom Cement visited Dhaka recently to discus the issue.
"Both the sides have failed to reach any solution on the deal," said a senior official of the local company.
In the meantime, Shovon Bag is now planning to lodge a complaint to a body monitoring Dhaka-Delhi trades.
Earlier, Calcom approved the samples of 9,000 pieces.
Analysts said this export could diversify Bangladesh's export basket and subsequently reduce the trade gap that exists between the two nations, which is highly tilted in favour of India.
Bangladesh imports goods from India worth over $ 2.0 billion and exports around $250 million a year.
Move to export cement bags to India fails
