Duty-Free Quota For Apparel Export to India Exhausted in 7 Months.

Top Bangladeshi apparel makers are eying the Indian market amid government's initiative of raising export quota and getting duty free access of all products to the neighbouring country, officials said.

The quota of 10 million pieces of apparel export to India with duty- free facilities has been fulfilled within seven months of the present calendar year. In 2010 some 8 millionpieces of apparel items were exported to India against 4.5 million in 2009 and 3.5 million in 2008.

The duty- free apparel export quota offered by the neighbouring country was 8 million pieces until 2010 which was raised to 10 million during the visit of Indian Commerce Minister Anand Sharma in April last.

"There is a substantial demand for Bangladeshi apparels in the Indian market. Our apparel makers are receiving good orders from there. That is why this year the quota has been fulfilled by July," vice chairman of Export Promotion Bureau (EPB) Jalal Ahmed told the FE Tuesday.

He said still there is a pending demand for 10.05 million pieces of RMG export to Indian market which 'we can't entertain due to lack of quota'. Some top apparel makers are also lobbying to get quota allocation for Indian market, he said.

Mr Ahmed said recently he wrote to the ministry of commerce (MoC) for taking steps to increase quota to the Indian market. "The Indian Prime Minister is scheduled to visit Dhaka next month. I gave reminder to the MoC officials so that they can raise the issue during the high level meetings."

He said Dhaka is trying to get duty free access of 61 more products to the Indian market of which 44 are apparel items. If the access is granted, no more quota increase will be needed.

Statistics show that Bangladesh's export to the Indian market has increased to US$512 million in fiscal year (FY) 2010-11 against $304 million in FY 2009-10. Export of jute and jute goods alongside the knit and woven items also rose during the fiscal.

Commerce Minister Faruk Khan recently told the FE that he had requested several Indian ministers and officials to provide duty and quota free access of all the Bangladeshi products to their market.

Talking to the FE president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Shafiul Islam Mohiuddin said Tuesday the demand for Bangladeshi products in the $62 billion Indian market is substantial.

"While exporting to India our exporters get good prices in some apparel items in comparison with the other destinations."

"India can be a good market for Bangladeshi apparel markers if the quantitative restriction is withdrawn," Mr Mohiuddin said.

Bangladesh's apparel export earned a total of US$18.7 billion during the FY 2010-11.

Source : thefinancialexpress-bd.com