India has given an assurance to Bangladesh that it would export 1.1 million bales of cotton in addition to the amount that has already been decided according to the contracts. India would also modify the present laws to eliminate the non-tariff barriers that often cause hassle in the way of importing jute sacks from Bangladesh.
Commerce Minister of Bangladesh, Faruque Khan informed that his Indian counterpart has given him the assurance about the duty-free entry of more products from Bangladesh to India. A positive decision will be taken soon in this direction. Under the South Asian Free Trade Agreement (Safta), Bangladesh has put forward a priority list of 61 products to India, asking for duty-free entry. These products mainly include textile, garments and footwear.
The minister, who has just concluded his three-day official trip to India, informed that the Government of India is keenly involved in the consideration of the priority list. The 1.1 million bales of cotton that India has promised to export to Bangladesh is in addition to the 135,000 bales of cotton that was already decided under a contract between the two countries before India had enforced a restriction on the export of cotton in April, 2010.
The Indian Commerce and Industry minister, Anand Sharma, revealed that directions have been given for the immediate recommencement of cotton exports to Bangladesh. Letters of credit (LC) for the cotton exports had already been sanctioned prior to the imposition of the ban on cotton exports.
Bangladesh is eager to ascertain 'cotton security' for its apparel industry which had registered a record growth last year in spite of the global financial crisis. Bangladesh has been importing 30 to 35 percent of its cotton demand from India.
Fibre2fashion News Desk-India
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