India-Bangladesh land port trade disrupted amid unrest

India-Bangladesh trade, which was disrupted in the wake of the unrest in the neighbouring country and the resignation of embattled prime minister Sheikh Hasina, remained stalled on Tuesday, 6 August, traders said.

West Bengal Exporters Coordination Committee secretary Ujjal Saha said 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".

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 but turnout remains low, sources said.

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, the largest land port, remains halted as the Benapole customs in Bangladesh remained non-functional.

Security at the land ports has been increased in response to the situation, he added.

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.

"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," he said.

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 exports to Bangladesh fell to USD 11 billion in 2023-24 from USD 12.21 billion in 2022-23, while imports decreased to USD 1.84 billion from USD 2 billion in the same period.

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.

Hasina landed at the Hindon airbase on the outskirts of Delhi on Monday, hours after she resigned as the prime minister following weeks of deadly anti-government protests.