Bangladeshi exporters and an economist expressed worries over the imposition of import restrictions by India on a number of Bangladeshi goods, including readymade garments, fruit and fruit-flavoured carbonated drinks, processed food items, cotton and cotton yarn waste, some plastic and PVC finished goods, and wooden furniture, through land ports.
They said that the Bangladeshi businesses who were exporting the products to India through land ports would suffer adverse impacts due to the India鈥檚 move that allowed Bangladesh to export the products only through the seaports of Nhava Sheva in Mumbai and Kolkata.
On Saturday night, the Directorate General of Foreign Trade under the commerce ministry of India imposed the restrictions through a notification.
The Bangladeshi exporters and the economist said that the ongoing trade tensions between the two neighbouring countries would render a 鈥榣oose-loose鈥� game in which no one would win, but the consumers and businesses would suffer.
According to data from the Export Promotion Bureau and the Bangladesh Bank, in the 2023-24 financial year, Bangladesh exported goods worth $1.57 billion to India, whereas it imported goods worth $9 billion from the neighbouring country. Readymade garment items led Bangladesh鈥檚 exports to India, followed by processed agro products, plastic goods, cotton and cotton waste, furniture and others. In FY24, Bangladesh exported RMG items worth $548.8 million to India.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that they exported a significant portion of RMG items to India through land ports.
鈥楾he move was a retaliatory one as Bangladesh earlier halted the yarn import from India through land ports. The RMG sector may avoid the impact, but the other sectors would be impacted severely,鈥� he added.
He urged the government to resolve the trade-related issues between the two neighbouring countries through diplomatic channels and negotiations.
鈥楾he ongoing trade tensions are impacting both businesses and consumers in the two countries,鈥� he added.
Echoing Hatem, former BGMEA director Mohiuddin Rubel said that this sharp move was likely to further strain trade relations between the two neighbouring countries.
鈥楢t a time when global trade is already facing numerous challenges, such retaliatory restrictions will only deepen losses for both sides,鈥� he added.
He also said that rather than resorting to confrontational trade measures, both countries would benefit more from dialogues and cooperative efforts.
In FY24, India imported furniture items worth $6.5 million from Bangladesh.
Selim H Rahman, general secretary of the Bangladesh Furniture Industries Owners Association, told 抖阴精品 that they exported 100 per cent of their items to India through land ports.
鈥楾he government should resolve the issues through diplomatic channel as soon as possible,鈥� he added.
Bangladesh exported processed agro products worth $154.8 million to India in FY24 and plastic goods worth $44 million.
The Pran-RFL Group exports agro, plastic, furniture, and other products worth $50-$55 million a year to India.
Kamruzzaman Kamal, director (marketing) of Pran-RFL, told 抖阴精品 that they shipped their 100 per cent products to India through land ports.
鈥楨xporting agro products through seaports is not cost and time effective as such arrangements need 10-20 per cent more time and three times more cost,鈥� he added.
India鈥檚 decision will hurt the exporters, he said, urging the government to handle the issues diplomatically.
Professor Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue, told 抖阴精品 that the decision would impact exports as it would take more time and cost exporters more.
鈥楴early 70 per cent of the RMG items are exported through land ports and it is far more for other products. The decision will lessen Bangladesh鈥檚 competitiveness,鈥� he added.
The ongoing trade tensions between Bangladesh and India should have been resolved through negotiations, as they harm the businesses and consumers in both countries, he said.
He termed the ongoing trade tension a 鈥榣oose-loose鈥� game for India and Bangladesh, in which no one would ultimately win.
Meanwhile, commerce adviser Sk Bashir Uddin said on Sunday that trade between Bangladesh and India would continue in the interest of both countries鈥� consumers and businesses.
鈥榃e don鈥檛 know anything officially about India鈥檚 steps yet. Once we do, we will take appropriate steps. If any issue arises, both sides will work to resolve those through discussions,鈥� he told reporters.
The move by India has further intensified the ongoing trade tensions between the two countries.
About a month ago, the NBR stopped importing yarn and other products from India through Benapole, Bhomra, Sonamasjid, Banglabandha and Burimari land ports.
On April 9, India cancelled the transshipment facility for goods exported from Bangladesh to third countries.
