In a new initiative by Indian railways, the transportation of raw materials like yarn, fabric and goods from Ludhiana’s textile and garment companies will be exported directly by train to Bangladesh.
Railway’s Ambala division in collaboration with MGH Group has started this facility on 27 June when for the first time railways loaded a special parcel train full of cotton yarn beyond the country borders to Benapole in Bangladesh from Ambala Cantt station.
This train, which consists of 20 parcel vans (VPU), was flagged off on 28 June in the presence of senior railway officials at Ambala.
According to the Railways, the customers opting for this facility will get end to end transportation solutions like exporting yarn, Fabrics & FMCG (Fast Moving Consumer Goods) from their respective factories across Ludhiana and Baddi to their buyers’ factories in Bangladesh including the customs clearance on both the sides of the border.
At the same time, the 20-parcel van was flagged off in the presence of railway officials in Ambala on Monday.
According to Railways, customers availing of this facility will get duty-free from their respective factories across Ludhiana and Buddy, as well as end the solution of transporting export boxes, clothes, and FMCG (Fast Moving Consumer Goods) to their buyer’s factory in Bangladesh. Which is important for the boundaries of both sides.
Arti International, Cedar Textiles, Garg Acrylic, Nahar Spinning, and Burdwan Textiles are some of the potential customers from Ludhiana.
“As we all know the current market order flow is positive but the recent yarn price hike in the market has made it difficult to grab the orders also the late deliveries of the raw material has made it difficult to live up to the commitments of the shipment,” said Hasin Arman, Treasurer, BAYLA and Director of MB Knit Fashion Ltd.
Praising the decision Hasin Arman, Treasurer, BAYLA and Director of MB Knit Fashion Ltd. said, “In this situation, the Indian government has taken this strategic decision very wisely. This initiative will increase more business possibilities with the Indian yarn market. Also, the competitive price and fast delivery will break the current monopoly in the yarn market, hence the yarn price will become a bit stable.”
Earlier, the businessmen in and around Punjab & Haryana were transporting commodities like yarn, fabrics & goods by road to Bangladesh in small quantities and at very high freight costs. Also, during the lockdown period, they were unable to transport these by road and it was then Railway staff and Officials approached the consignors and explained to them about the facilities to transport by rail.
“In this situation, the Indian government has taken this strategic decision very wisely. This initiative will increase more business possibilities with the Indian yarn market. Also, the competitive price and fast delivery will break the current monopoly in the yarn market, hence the yarn price will become a bit stable.”HASIN ARMAN, TREASURER, BAYLA AND DIRECTOR OF MB KNIT FASHION LTD.
“Accordingly, they have moved the cotton yarn by rail in bulk through goods trains, but for moving the consignment by Goods trains, it is mandatory for the farmers and merchants to mobilize the quantity in bulk,” said Senior DCM, Vivek Sharma.
To mitigate this problem and to facilitate the Rail users to move their quantities in smalls like up to a maximum of 500 tons in each trip, the Ambala Division of Northern Railway took the initiative and started the Special Parcel train to Bangladesh.
This has helped the merchants to market their products beyond the country border by transporting the Cotton Yarn in small quantities through the Special Parcel train. Accordingly, one special parcel train consisting of 20 parcel vans moved to Benapole in Bangladesh.
Each VPU was loaded with 430 cartons, weighing around 23 tons and the total weight carried by the special parcel express is around 468 tons.
The cost per ton for carrying by Special Parcel train is Rs 5,491 and which is very cheap and economical as compared to Road transport which is much higher. This will be the first of its like traffic from Northern Railway catering the yarn industry of Northern India & earned the freight of Rs 25,69,630.
The train service to Benapole will help the whole textile industry in this region to commit to stringent delivery schedules and that, in turn, will increase India’s exports and boost economic trade between two neighboring countries.
