Home ›› 18 Jun 2022 ›› Stock
Cement exports from Bangladesh to India’s north-eastern state of Tripura is expected to decline due to transit facilities given to India, analysts say.
Bangladesh has allowed the use of its Chattogram and Mongla Ports for movement of goods to and from India through its territory.
“Due to the transit facility, India is now capable of supplying cement to these north eastern states at very low cost. As a result, there is a possibility that the cement industry of Bangladesh might experience a decline in export in the coming years,” said the EBL Securities in its analysis.
Echoing the analysis, Bangladesh Cement Manufacturers Association (BCMA) said the transit facility will have a negative impact on cement exports to India’s north east region.
A Standard Operating Procedure (SOP) was signed and exchanged by India and Bangladesh in the presence of Prime Minister Sheikh Hasina and her counterpart Narendra Modi on October 5, 2019.
The agreement and SOP permit the movement of goods in Bangladesh through waterways, rail, road or multi-modal transport. Eight routes are provided under the Agreement which would enable access to the North East Region via Bangladesh.
The routes identified comprise Chattogram/Mongla Port to Agartala (Tripura) via Akhura, Chattogram/Mongla Port to Dawki (Meghalaya) via Tamabil, Chattogram/Mongla Port to Sutarkandi (Assam) via Sheola and Chattogram/Mongla Port to Srimantpur (Tripura) via Bibirbazar and vice versa.
BCMA adviser Shankar Kumar Roy told The Business Post, “I don’t think that the cement exports to the region will be severely hampered due to the transit.”
“However, it’s natural that if India supplies cement to Assam and Tripura, the Bangladeshi cement makers will face stiff competition.”
Premier Cement Company Secretary Kazi Md Shafiqur Rahman said although transit facilities with India have benefited us in many respects, there have been some setbacks in cement exports. Tripura-based cement exports have declined slightly.
According to the BCMA, there are 76 cement manufacturing companies registered in Bangladesh, However only 42 big, medium, and small scale businesses are now operational. Seven of the 42 companies are listed on the stock exchanges.
These 42 facilities currently have an annual effective capacity of around 58 million tonnes compared to a demand of around 31 million tonnes.
