Bangladesh crisis disrupts trade via Bengal land ports

The India-Bangladesh trade remained stalled on August 6 amid unrest in the neighbouring country and the resignation of former Prime Minister Sheikh Hasina, according to traders.  

Ujjal Saha, Secretary of the West Bengal Exporters Coordination Committee stated that trade through land ports in the state has been halted due to “non-clearance of goods by Bangladesh customs, resulting in hundreds of trucks being lined up in parking lots”.

The free flow of trade between the two countries through land ports at Petrapole, Gojadanga, Mahadipur and Fulbari in West Bengal has been affected, while some passenger movement has been reported, sources said. Turnout, however, remains low.

Saha noted that a Bangladesh government notification issued on Sunday declared a three-day holiday till Wednesday, except for essential services.

Trade through Petrapole in North 24 Parganas district which is the largest land port remains halted as the Benapole customs in Bangladesh remained non-functional. Meanwhile, security at the land ports has been increased in response to the situation.

Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), emphasised the need to protect factories in Bangladesh and maintain supply lines to sustain trade and economic activities, stating, “As Bangladesh is experiencing political turmoil, it is essential for all political factions to protect garment and other factories and keep supply lines open across the border."

Engineering Export Promotion Council chairman Arun Kumar Garodia expressed concern over the political developments in Bangladesh, noting the significant impact on Indian exporters.

Bangladesh, a key destination for Indian engineering products, saw a drop in exports to USD 542.1 million during the April-June period of the 2024-25 fiscal, a decrease of 8.2 per cent from the previous year. Bangladesh is India’s largest trade partner in South Asia, and India is the second-largest trade partner for Bangladesh in Asia.

India’s main exports to Bangladesh include vegetables, coffee, tea, spices, sugar, confectionery, refined petroleum oil, chemicals, cotton, iron and steel, and vehicles, while major imports are fish, plastic, leather, and apparel.

Bangladesh’s exports to India are heavily concentrated in textiles and garments, which constitute 56 per cent of their exports.