Bangla trade: Exports body wants RBI relief on payment deadline
Times of India | 9 August 2024
Kolkata: The Federation of Indian Export Organisations (FIEO) will write to RBI for extension of payment realization deadline for exporters to Bangladesh.
Yogesh Gupta, the regional chairman (east) of FIEO, told TOI that exporters had resumed sending goods to Bangladesh but there was concern about payments from the neighbouring country. “We do not know what is exactly happening there and the situation at the banks.This is why we would seek some flexibility from RBI,” he said.
Exports from India to Bangladesh are worth $11.8 billion and a substantial part of this is done through the land route, mainly via Bengal and the northeast.
Earlier, FIEO president Ashwani Kumar had said that trade with Bangladesh was returning to normalcy with most border gates — including Petrapole, Ghojadanga, Hilli and Changrabandha — being fully functional.
The trade, which came to a halt for a couple of days after the political crisis erupted in Bangladesh, had witnessed occasional disruptions over the last 15-20 days. “However, the feedback given by importers during the disruptions was reassuring. They expected the situation to normalize in a week or so. The export of perishables did feel a minor impact, while the rest of the commodities will soon catch up,” Kumar added.
Exports to Bangladesh comprise cotton, petro products, automobile and auto components, yarn and fabric, cereals, fruits and vegetables, tea, coffee, spices and animal feed. Imports are dominated by apparel, leather goods, animal feed and fish. Engineering Export Promotion Council chairman Arun Kumar Garodia said that the total value of engineering goods exported to Bangladesh during the April-June period in FY 2024-25 stood at $542.1 million, down 8.2% year-on-year from $590.4 million last year.