Bangladesh is going to export cement to neighbouring India from June next which, will help reduce Dhaka’s huge trade imbalance with New Delhi. Bangladesh suffers from a chronic trade deficit with its large trading partner, with the gap hovering at around US$ 1.5 billion annually. India will import 10,000 tonnes of cement a month initially to meet the demand for the ongoing projects in its Assam state. A large number of bridges are under construction in Assam, sources said.

Holcim, a multinational cement manufacturing company, will supply the cement through the river route under the Inland Water Inter-country Trade and Transit Protocol signed between the countries in late 70s. The two governments extended the protocol under an agreement signed in New Delhi on May 1 last. India has waived barriers to facilitate the import.

Otherwise, it would need to procure cement for Assam from Madhya Pradesh, 6000 kilometres away from the state. It requires 30 days to reach cement to the state apart from rupees 3,000 per tonne as carrying cost whether it needed only 10 days to send cement to Pandu port of Assam and the cost will be around Tk 1,000 to carry a tonne of cement. Holcim signed an agreement with its counterpart in late April this year.

Apart from export earnings, Bangladesh will also earn a handsome amount by transporting the cement. “We will earn around Tk 10 million a month as freight cost by sending cement through river route,” said Mahfuzul Hoque, shipping agent of the Holcim.