Business

Spinners Association (Gujarat) Strengthens Trade Bonds with Bangladesh

Spinners Association (Gujarat), SAG participated in India-Bangladesh Cotton Co-operation Meeting at Dhaka on 17th September to pass a message of mutual trust in business between the two countries.

SAG was part of a delegation from India, which comprised Bhavesh Thakar Secretary General of Spinners Association (Gujarat) & Textile Excellence (Rajkot Office), Bharat Patel MD of Jaymala Spintex Ltd and Galav Worldtrade Pvt Ltd, Tapan Ghelani Director of Bhavani Cotspin Pvt Ltd, Tushar Sheth MD of The Cotton Trade India Co., Haresh Jani MD of Krishna Natural Fibers limited, Ashok Monsara Owner of Gajanand Cottex, Sunku Radesh Kumar Owner of Sirdi Sai Enterprise and Shantilal Ostawal Owner of Cotseed Corporation who all expressed their interest & business profile at the start of the conference.

Bhavesh Thakar conveyed in his speech that both the countries have enormous potential and opportunities to overcome challenges they are facing. “For this, theyhave to develop trust and harmony in business to make the atmosphere healthy to trade. India is the largest cotton producer that supplies Bangladesh with good quality cotton. Bangladesh, at its end is the largest cotton consumer, having full-fledged forward integration chain of textile up to RMG (Ready Made Garments),” he added.

“The border countries extend geographical convenience in supply chain management to reduce the lead time to make effective delivery as scheduled. Hence, a relationship built with trust will help both the countries to overcome any malpractice at either end. Further this will help us meet global challenges and ensure that both the countries grow in prosperity by supplying quality goods,” he concluded.

Some presentations conveyed the importance of cotton and textile business for India and Bangladesh in the coming production season. They also threw light on the consumption estimates that revealed about current scenario of cotton business and created clear conception about Indian cotton production, quality and capacity. They were addressing the delegates of the program. The core theme discussed was Challenges and Opportunities between India and Bangladesh.

The speakers highlighted some challenges between India and Bangladesh cotton trade. For instance, Indian cotton quality and weight shortage issues; Bangladesh payment and banking system; Bangladesh land route high congestion (Traffic); India-Bangladesh logistic cost; Indian quality cotton procurement issues and Indian cotton procedures; literacy problem in international business transaction; and involvement of more traders. The issues raised also included, India-Bangladesh Cotton arbitration support in case of default in delivery; payment as well as nonpayment of quality and weight shortage claim; and timely commission payment.

“India has cotton futures exchange like China and USA for buying and selling cotton in spot or futures markets, which helps hedging for domestic and international buyer and supplier. India can give Bangladesh support for hedging in Indian cotton exchange, storage cotton in warehouse and direct delivery under the norms like ex-ginning factory, F.O.B port and C.I.F from India,” the presenters emphasized.

Joint Director of Bangladesh Bank, Md Nazrul Islam mentioned in his presentation that trade and trade finance is very important for Bangladesh. “At present, Bangladesh has many regional challenges such as China, Vietnam. If it cannot compete, it will be left behind. Hence, operational efficiency, IT capacity and automation are to be included in central banking system of Bangladesh for eradication of allegations in payment procedure,” he added.

An innovative open discussion session with constructive interpretation was held on issues and solutions for long term business between India and Bangladesh. In the open discussion session, Managing Director Sincot (BD) & Member of Bangladesh Cotton Association (BCA), Mehidi said, “We have had a bad experience when it comes to cotton procurement from India, when trying to get good quality cotton at a competitive price. We have also faced contamination and weight issues.”

“Our business policy, which practices the trial of new cotton suppliers, creates a bad impression about Indian cotton among Bangladeshi suppliers and traders. The Bangladesh Cotton Association and Indian Cotton Association should come together with industry and traders to address these burning issues,” he added.

In addition to the conference, Bhavesh Thakar also visited Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA); and Bangladesh Garments Manufacturers and Exporters Association (BGMEA) to invite them for the international exhibitions to be held at Gandhinagar, Gujarat between December 7 and 10, 2017, namely Indian Textile Sourcing Exhibition (ITSE) and Indian Textile Machinery and Accessories Exhibition (ITMACH India).

He discussed among other things, the challenges and opportunities for the bilingual business relationship to prosper and flourish in both the countries.