India Pledges to Export 11 Lakh Bales of Cotton.

India has assured Bangladesh of exporting some 11 lakh bales of cotton in addition to those already contracted and amend relevant law to remove non-tariff barriers in importing jute bags from Bangladesh.

"The Indian commerce minister has assured me about the duty-free entry of more Bangladeshi goods and we'll get a positive response very soon," visiting Bangladeshi Commerce Minister Faruque Khan told reporters here yesterday.

Khan, who had an unscheduled meeting with Indian Finance Minister Pranab Mukherjee yesterday, said the senior Indian leader has also given assurance that the joint communique signed by the two countries in January this year, would be implemented expeditiously.

Sources said an announcement about India granting duty-free access to more Bangladeshi products is likely to be among the announcements to be made when Indian premier Manmohan Singh visits Dhaka possibly in January next year.

Bangladesh submitted to India a priority list of 61 goods, mostly textile, garment items and footwear seeking duty-free access under South Asian Free Trade Agreement (Safta).

Faruque Khan, who wrapped up his three-day official visit to India yesterday, said New Delhi is actively considering the list.

The 11 lakh bales of cotton that India assured Bangladesh to export is over and above the 135,000 bales contracted before India imposed a ban on cotton export in April this year.

Bangladesh had in all contracted import of 30 lakh bales of cotton just before the ban, which India had clamped in order to check rising cotton prices in domestic market.

Of the 30 lakh bales, India has yet to export 1.35 lakh bales to Bangladesh.

Anand Sharma, Indian commerce and industry minister, said instructions were given for speedy resumption of cotton export to Bangladesh for which letters of credit (LC) had been approved before the ban.

Sharma is likely to visit Dhaka in mid December, Faruque Khan said.

He said Bangladesh is keen to ensure "cotton security" for its garment sector that saw a record growth last year despite the global economic slowdown.

Bangladesh imports 30-35 percent of its cotton requirement from India.

About the trade gap, Khan said India's import of 80 lakh pieces of garments from Bangladesh is a "very small" figure, and the India's 35 crore middle class people will benefit if the country imports more.

Referring to the non-tariff barrier in export of jute bags from Bangladesh to India, Khan said he discussed it with Indian Textile Secretary Rita Menon who assured him of necessary change in the law.

Khan said allowing more garment items and jute bags from Bangladesh will reduce the huge trade imbalance between the two neighbouring countries.

Source : thedailystar.net