Dues pending, bicycle industry hopes Bangladesh will restore business ties

Things are still not back to normal after the turmoil in Bangladesh, especially for the bicycle industry in India, which is struggling to get back its payments. Industrialists here believe that business ties would become normal once there will be complete peace in Bangladesh but for the time being, no stocks are being sent to the neighbouring country.

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Talking to The Tribune, KK Seth from Neelam Cycles, who is also the chairperson of FICO (Federation of Industrial

and Commercial Organisation) said the pending payments are yet to be cleared by the buyers in Bangladesh.

“We cannot think of sending them the stocks unless the picture is clear about the order, mode

and timing of payments. There are many industrialists who have to get the pending payments released from Bangladesh,” said Seth.

The fall of Sheikh Hasina regime in Bangladesh in August last, spelt serious implications for business. Around 25-30 industrial houses were involved in the export of bicycles and its components to Bangladesh from the industrial city.

The industrialists were worried about the payments as they sent the products directly to the buyers and not through the Letter of Credit (LC) because during the regime of Sheikh Hasina, India enjoyed good rapport with Bangladesh and there were regular imports and exports with that country.

Expecting to see ties getting normalised with that country again, UCPMA (United Cycles Parts and Manufacturers Association) president Charanjit Singh Vishwakarma said that the situation has improved but not to the extent that they start sending regular orders. To those who have sent the payments and the balance is nil, we have started sending stocks in small quantities through fresh agreements but the buyers who have not paid the industry their pending dues are being avoided for the time being, said the UCPMA president.

“We don’t get the payments immediately but there is a cycle of 90 days or so to get it. Ludhiana industrialists dealing in bicycles and its parts, components of rickshaws and hardware are worried as their payments are still stuck,” said the UCPMA president.

At present, no stock being sent

City industrialists believe that business ties will become normal once there is complete peace in Bangladesh but for the time being, no stocks are being sent to the neighbouring country.