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Bangladesh RMG exporters suffer as Indian firm defaults
Nov '12
More than twenty readymade garment (RMG) exporters from Bangladesh are suffering due to non-payment by an Indian firm for goods purchased by it.
Mr. Abdus Salam Murshedy, president of Exporters Association of Bangladesh (EAB) told fibre2fashion, “Though we were having a good trade relation with India, the uncertainty in receiving payments from an Indian importer has created a barrier in the relationship.”
“The Indian kidswear retailer had imported garments worth US$ 5 million from 22 Bangladeshi firms, but it has so far made payment only for apparels worth US$ 500,000”, he adds.
Mr. Mushedy further says, “The company had earlier assured us that all the payments will be made by January 2012, but it has not made any payment in the last one year.”
“This issue has put a break in RMG exports to India since Bangladeshi garment manufacturers have lost their confidence to continue the trade-relation with the country”, he opines.
In September last year, the Indian Government extended duty free access for 46 Bangladeshi textile goods to India, which resulted in 80-90 percent increase in import of Bangladeshi garment products by India, according to Mr. Murshedy.
Mr. Murshedy ends on an optimistic note saying, “Both the countries must sort out the existing problem and we want to build up a good relation with India”.

Fibre2fashion News Desk - India

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