Tk.1,330/ton Transit Fee Proposed for Indian Goods

[Bhairava]

I’d be happy to trade with india, provided it’s fair and even. You remove all items from the negative list and well do the same, quid pro.

That is not happening as you simply cannot wish away the negative list.

AS I said India is not out there for charity. We do what gives the maximum profit for us and helps our industry.

It is upto the elected Govt in BD to do the same.

Have you gone nuts? Do you think our textile industry is dependent on imports from WB? Cut out the crap dude.
Most of the raw materials are cotton that are used by textile mills to produce woven fabrics. The only affected farms will
be the the domestic fabric mills not the garment manufacturer. They'll just opt for Chinese raw materials which will be good enough.

And the added transportation charges of getting the raw material from China will be borne by whom ?

And in this case it will be significant considering geography of Bangladesh. BTW I also hope that will happen because the Garment industry in India and specifically my area (Tirupur) is horribly hit by the export of cotton to Bangladesh.

The added transportation charges will increase the price of BD garments while the domestic cotton will decrease the price of Indian garments thus giving us a big advantage in the international market.

Ah ! I wish smart pants like you were in the BD Government

 

[integra]

The added transportation charges will increase the price of BD garments while the domestic cotton will decrease the price of Indian garments thus giving us a big advantage in the international market.

The price of Chinese fabric is cheaper than local fabric, only because of trade tariffs
the garment manufacturers goes for local fabric.

 

[LaBong]

Have you gone nuts? Do you think our textile industry is dependent on imports from WB? Cut out the crap dude.
Most of the raw materials are cotton that are
used by textile mills to produce woven fabrics.
The only affected farms will
be the the domestic fabric mills not the
garment manufacturer. They'll just opt for Chinese raw materials.

About the cows, well keep them in your showcase, who cares.
We'll just stop our Hilsha then.

How cost affective the raw materials from China will be as opposed to from India? You can even import from Antarctica but then you won't be competitive anymore. The majority of BD import is textile raw materials and livestocks.

You put pretty high tariffs on Hilsa anyway, we should also reciprocate the favour by imposing more tariffs on BD products!

 

[LaBong]

The price of Chinese fabric is cheaper than local fabric, only because of trade tariffs
the garment manufacturers goes for local fabric.

Chinese fabric could be cheaper, but raw materials won't be.

 

[Bhairava]

The price of Chinese fabric is cheaper than local fabric, only because of trade tariffs
the garment manufacturers goes for local fabric.

Wait let me get clear on this.

You mean to say Chiense fabric or raw cotton ? And again do you mean to say China has in place trade tarriffs against BD ?

 

[damiendehorn]

That is not happening as you simply cannot wish away the negative list.

AS I said India is not out there for charity. We do what gives the maximum profit for us and helps our industry.

It is upto the elected Govt in BD to do the same.

THANK YOU! India is not a charity, “cannot wish away the negative list”, and does not do things for Bangladeshis benefit but rather for its own profit and for its industry (rightly looks after its interests).

So this means that Bangladesh should do the same, right, look after its interest. This means we should impose similar negative lists and quota barriers etc (what’s good for the goose is good for the gander as they say).

And the added transportation charges of getting the raw material from China will be borne by whom ?

And in this case it will be significant considering geography of Bangladesh. BTW I also hope that will happen because the Garment industry in India and specifically my area (Tirupur) is horribly hit by the export of cotton to Bangladesh.

The added transportation charges will increase the price of BD garments while the domestic cotton will decrease the price of Indian garments thus giving us a big advantage in the international market.

Ah ! I wish smart pants like you were in the BD Government

Actually it’s now cheaper to import the raw materials from from china and before the flood Pakistan, I should know we own a Knit factory in Gazipour which employs over 2000 workers. We source majority from china now, quality and price just can’t be matched elsewhere.

 

[integra]

Wait let me get clear on this.

You mean to say Chiense fabric or raw cotton ? And again do you mean to say China has in place trade tarriffs against BD ?

My point is that the only affected people will be the mill owners not the finished garment manufacturers. Raw cotton is imported by the fabric manufacturers.

 

[Bhairava]

THANK YOU! India is not a charity, “cannot wish away the negative list”, and does not do things for Bangladeshis benefit but rather for its own profit and for its industry (rightly looks after its interests).

So this means that Bangladesh should do the same, right, look after its interest. This means we should impose similar negative lists and quota barriers etc (what’s good for the goose is good for the gander as they say).

If it helps BD people and their industry , why not ? After all the BD Govt is elected to look after the interests of Bangladesh and not India.

Actually it’s now cheaper to import the raw materials from from china and before the flood Pakistan, I should know we own a Knit factory in Gazipour which employs over 2000 workers. We source majority from china now, quality and price just can’t be matched elsewhere.

Good for you. And as I said it will be good if BD puts some tariff on cotton import from India so that the local producers will be forced to sell the cotton to domestic market and this in turn will drastically reduce our manufacturing cost.

 

[Bhairava]

My point is that the only affected people will be the mill owners not the finished garment manufacturers. Raw cotton is imported by the fabric manufacturers.

Don't you know an increase in the cost of making yarn will automatically increase the price of making the finished garments ?

 

[Roybot]

^Majority of BD import are textile products without which BD textile industry will die a quick death. I really hope BD govt listen to the nincompoops here and put tariffs, negative lists etc, my state will be most profitable if they do it.

Have you gone nuts? Do you think our textile industry is dependent on imports from WB? Cut out the crap dude.
Most of the raw materials are cotton that are
used by textile mills to produce woven fabrics.
The only affected farms will
be the the domestic fabric mills not the
garment manufacturer. They'll just opt for Chinese raw materials.

The price of Chinese fabric is cheaper than local fabric, only because of trade tariffs
the garment manufacturers goes for local fabric.

Well lets see some numbers first. Detail of Bangladesh cotton imports

I can't be asked doing the maths, but lets say Bangladesh imports shyte loads of cotton from India (Table 2 and 3), and its own cotton production is quite low as can been seen in Table 5.

So what happens if India stops exporting cotton? Firstly don't think India can afford to, cause it will affect the cotton farmers. But if say India does under some circumstances, Bangladesh will have to look elsewhere. China and US biggest producers, China imports cotton itself due to to huge clothing industry, and importing from USA won't be economically viable. So in turn India stopping cotton export will effect Bangladesh RMG sector quite a bit. Thats how I see it anyways, cause mind you raw cotton and cotton yarns are eventually fed into RMG in the form of fabric which is made in Bangladesh.

Chances of anything like this happening=Zilch. Unless of course Bangladesh decides to wage a war against India so still zilch.

========================================
Source: Bangladesh RMG Sector

 

[damiendehorn]

Wait let me get clear on this.

You mean to say Chiense fabric or raw cotton ? And again do you mean to say China has in place trade tarriffs against BD ?

The vast majority of imports are yarn, (woven or knit), the minority is right now raw cotton, we are volume producers of finished goods, so our requirements is mainly for yarn/material not raw cotton. New large scale textile manufacturers are beginning to startup and they will soon start supplying to us that’s when you’ll see a spike in raw cotton demand in Bangladesh and a further reduction in our cost structure.

Secondly, yes China did have trade barriers on Bangladeshi goods, but almost all have now been removed now.

 

[Bhairava]

So what happens if India stops exporting cotton? Firstly don't think India can afford to, cause it will affect the cotton farmers.

No dude..its not like that. We can afford it to certain extent.

Since there are some duties associated with export to BD, domestic growers find it more profitable to export the cotton to BD than to say local markets.

So local manufacturers have to source their cotton from outside sources like Egypt thus making the finished product a little less competitive in the global market.

If we can make the local cotton growers to sell it inside India only, albeit at a little less profit, our garment industry will grow in leaps and bounds.

I speak from the direct experience of my uncle owning an export firm in Tirupur from where almost 60% of India's total knitwear exports go.

 

[damiendehorn]

The marginal increase if there is any to a total ban of exports of cotton and other yarns to Bangladesh will be minimal, first Bangladesh is a volume producer and the majority of raw materials used is Syn or Mix. The data you’re all looking at is from 2009 before india actually reduced the export of raw cotton to Bangladesh.

We just sourced our requirements from elsewhere, CIS countries, china and African countries. You guys really need to get the latest data.

Next the exponential growth in the garment industry is in knit, followed by woven, to the extent that we are one of the largest exporters in the world by volume (for a nation 1/8 the size of india). Our cost structure is the lowest in the world and this is unlikely to change even if india refuses to sell raw cotton to us.

We are now looking to move up the value chain and start to build design centres and eventually our own brands.

 

[LaBong]

The marginal increase if there is any to a total ban of exports of cotton and other yarns to Bangladesh will be minimal, first Bangladesh is a volume producer and the majority of raw materials used is Syn or Mix. The data you’re all looking at is from 2009 before india actually reduced the export of raw cotton to Bangladesh.

We just sourced our requirements from elsewhere, CIS countries, china and African countries. You guys really need to get the latest data.

Next the exponential growth in the garment industry is in knit, followed by woven, to the extent that we are one of the largest exporters in the world by volume (for a nation 1/8 the size of india). Our cost structure is the lowest in the world and this is unlikely to change even if india refuses to sell raw cotton to us.

We are now looking to move up the value chain and start to build design centres and eventually our own brands.

Nice shifting of goalposts there, from we should add tariffs and negative list to Indian import to we will be affected marginally if India stops exporting to BD.

 

[damiendehorn]

Nice shifting of goalposts there, from we should add tariffs and negative list to Indian import to we will be affected marginally if India stops exporting to BD.

hows that shifting goal posts? Two different conversations, I am all for imposing negative lists similar to what india has, and if india decides to stop export of cotton to Bangladesh, fine, just have to source elsewhere (opps they did drastically cut exports and we did buy from elsewhere, india dosen't have a monoply of cotton production).

helps our trade balance.