The Indian denim industry that heavily depends on Bangladesh for conversions has demanded that the Petrapole-Benapole Border congestion be dealt as a priority to ensure smooth textile trade between the two countries. Since a month, acute congestion at the border has held up millions of metres of denim fabric meant for Bangladesh garment factories. Arvind Ltd. alone reported that 3 million metres of fabric worth US $ 9 million meant for brands like GAP, Levis, H&M are held up at the border, putting pressure on the supply chain. “The delay in shipments due to congestion at border results into garment airfreight and thereby causing huge loss either to garment manufacturers in Bangladesh or to fabric manufacturers in India,” says Aamir Akhtar, CEO, Arvind Ltd.
Raymond UCO Denim, yet another exporter of high value fabrics from India, has sought that infrastructure be upgraded on the border to ensure better trade. “There are not even sufficient computers and printers with authorities to support the burden of exports,” says S.K. Gupta, Group CEO, Raymond UCO Denim.
The Denim Manufacturers Association has expressed concerns over the infrastructure bottleneck, and association President Sharad Jaipuria has even demanded that the border be accorded the status of a dry port. Since September 2011, the shipments are taking much longer time to cross border owing to congestion at the border. Exports between the two countries are hit owing to frequent closures due to festivals and strikes on both sides, shorter duration of common working hours at the border and frequent E.D.I. failures. The Petrapole-Benapole corridor could be decongested by allowing 24×7 export import activity.
