Spinners Association Gujarat (SAG) participated in India-Bangladesh Cotton Co-operation, Buyer – Seller Meet organised at Dhaka on 17th September with the sole objective to enhance the relationship and strengthen the mutual trust in business between the two countries. Eight Indian dynamic leaders who attended the meet are Bhavesh Thakar, Secretary General of Spinners Association (Gujarat) andTextile Excellence (TE- Gujarat 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
Bhavesh Thakar from SAG and Textile Excellence welcomed all the delegation from India and Bangladesh. He started his speech with the enormous potentials and opportunities for healthy trade. The challenge is to develop the lost trust and harmony in business to make the atmosphere healthy to trade.
India being the largest and best quality cotton producer / Supplier whereas Bangladesh, being the largest cotton consumer, having full-fledged forward integration chain of textile up to RMG. Being the neighboring countries, Supply Chain Management lead time can be reduced and on-time deliveries will take on the priority. Hence, a relationship is purely based on trust which will help both the countries to overcome malpractice at either ends, further to meet the global challenges and objectives of growing together with prosperity by supplying quality & withstanding the stakeholders.
Other delegates from India presented about India and Bangladesh’s Importance for cotton and textile business with coming season production, consumption estimates that revealed about current scenario of cotton business and created clear conception about Indian cotton production, quality and capacity. They highlighted some challenges between India and Bangladesh cotton trade – 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 due to more traders are involved. It was also pointed out that the issue of India-Bangladesh Cotton arbitration support in case of default in delivery, Payment as well as non-payment of quality and weight shortage claim and timely commission payment.
India has cotton future exchange like China and USA for buying and selling cotton on spot or future market hedging for domestic and international buyer and supplier. India can provide the support for hedging in Indian cotton exchange, storage of cotton in warehouse and direct delivery under the norms like ex-Ginning factory, F.O.B port and C.I.F from India.
Joint Director of Bangladesh Bank, Md. Nazrul Islam rightly mentioned in his presentation that Trade and trade finance is very important for Bangladesh. At present, Bangladesh facing competition from China and Vietnam, so Bangladesh is modernising/ upgrading their operational efficiency, IT capacity and automation in their central banking system which will eradicate the allegations made for payment procedure.
In an innovative open discussion session, constructive arguments held on issues faced by both the countries and solutions sorted for long term business between India and Bangladesh. Mehidi, Managing Director Sincot (BD) and Member of Bangladesh Cotton Association (BCA), said “We had a lot of bad experiences in the issues of cotton procurement such as desired quality with competitive price, contamination and weight. Due to the business policy and practice of new cotton suppliers we have bad experiences and imperfection about Indian cotton towards Bangladesh cotton traders. We should work together with Bangladesh Cotton Associations and Indian Associations to resolve this burning issue to be counterpart of cotton business development of both countries.”
After the conference, some delegation members along with Bhavesh Thakar visited two major RMG sector associations from Bangladesh , i.e. Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Garments Manufacturers and Exporters Association (BGMEA) to invite for the upcoming major India-International Exhibitions i.e. ITSE (Indian Textile Sourcing Exhibition / www.itsexhibition.com) & ITMACH India (2nd International Textile Machinery & Accessories Exhibition / www.itmach.com)
Indian and Bangladesh associations discussed about the Challenges & Opportunities for the bilingual business relationship & role of Associations of the two countries for their members to prosper together.
SAG – association invited Bangladesh delegates to visit the ITES and ITMACH in coming December 2017, to explore the hospitality served by the association. To know more about association and its activities to be a part of the community visit www.agsa.org.in