That apparel exports from Bangladesh to India enjoy duty benefit is a well-known fact. However, what is worrying the garment manufacturers in India, especially those in Ludhiana, is the alleged flooding of Chinese products coming via Bangladesh.
“…China is sending all products – finished garments and cloth – through Bangladesh because India has signed free trade agreement with Bangladesh, thereby enjoying cost advantage. This is hurting the sentiments of local manufacturers. Not only this, under-invoicing of bills is being done in connivance with customs officials. We had given a representation regarding this to Union Minister Smriti Irani also and are awaiting response from the Centre,” alleged Head (Textile Division), Federation of Industrial and Commercial Organisations, Ajit Lakra while speaking to a newspaper.
Many other apparel manufacturers of Ludhiana also alleged that smuggling of fabric/garments was being done at the ports in connivance with customs officials, which is hurting the local industry. What’s more! middlemen are also indulging in malpractices to make available Chinese products to the local dealers at a cheaper rate it seems.
“Suppose the duty on a garment from China is Rs. 400 per piece, the middlemen are providing it to dealers at Rs. 50 to 60 per piece (in addition to original price of the garment) and it is hurting the local industry,” alleged an apparel manufacturer.
