Bangladesh’s pursuit of a reliable source of essential commodities from neighboring India has encountered a hurdle.
The proposed memorandum of understanding (MoU) drafted by India lacks crucial safeguards for Bangladesh.
The MoU lacks a vital government guarantee from India on delivering essential supplies. This absence undermines trust and raises concerns about India’s commitment to fulfilling Bangladesh’s needs.
The draft MoU proposes prices significantly higher than domestic rates in India. This puts an unnecessary burden on Bangladesh’s economy, making essential commodities less affordable for its citizens.
According to an official of the commerce ministry, the Mou is intended to ensure smooth payment for export proceeds on Indian counterpart. It is not clear what kinds of benefits or privileges are offered to Bangladesh importers, like TCB, added the official.
The MoU avoids a government-to-government (G2G) framework, raising doubts about its effectiveness. A G2G pact would hold more weight and ensure greater accountability on both sides.
It is to be noted that India is one of the major sources of essential commodities imported by Bangladesh from the world market.
As the essential commodities are agricultural products, importing those from India is advantageous because of geographical proximity.
Bangladesh has rightly sought revisions to the MoU. The country needs a guarantee of steady supplies at fair prices to ensure food security and manage price fluctuations. The current MoU, in its present form, fails to deliver on these crucial aspects.
By negotiating for a revised agreement that prioritizes Bangladesh’s needs, both nations can establish a mutually beneficial trade partnership.
Bangladesh must hold firm and advocate for its citizens’ well-being. India, as a regional power, should strive to be a reliable partner by offering a more transparent and accountable framework. Clear communication and a commitment to fair trade are essential for a successful MoU.