Financial Daily from THE HINDU group of publications
Monday, Feb 04, 2002
Financial Daily from THE HINDU group of publications Monday, Feb 04, 2002 |
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Logistics
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Railways Industry & Economy - Cement Allotment of Railway wagons for cement export sought Our Kolkata Bureau THE NON-AVAILABILITY of adequate railway wagons for export of cement to Bangladesh is perceived by the trade as a major hindrance. Bangladesh is a major player, besides India, in the emerging South Asia Preferential Trade Arrangement (Sapta), and the Railways of both the countries are seen as major trade facilitators. According to trade sources, if the Railway authorities do not provide BCN wagons on a priority basis for movement of cement to Bangladesh, competitors from Indonesia, China and South Korea will sooner or later replace Indian exporters of cement, mainly on account of delay in execution of orders. It is feared that since Bangladesh is one of the major markets for Indian cement, besides Nepal in the region, the problem of inadequate availability of railway wagons may seriously undermine cement exports to Bangladesh. Exporters need to honour their commitment of timely export, and priority in allotment of wagons is a must for this, they feel. Besides wagons, trade sources say that the disparity in rail freight charged on cement and rice was also posing a problem. While cement attracts freight tariff under classification 150A-train load, rice, it is pointed out, attracts freight under classification 95M-train load. This, say exporters, makes rail transport for cement costlier than that for rice by 62.4 per cent. It is suggested that the rail freight chargeable on cement and clinker may be made at par with rice freight charges for export purposes. Cement and clinker, incidentally, are items of immense export potential, and trade experts say these two items should be included under Sapta, and in the first list of free trade agreement, for extension of concessional tariff on import of the same into Bangladesh. This is sought mainly in view of the recent hike in Customs duty rates on these two items by the Government of Bangladesh.
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