Saturday 24th of May 2025
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   Business
Land port ban to raise costs 5x, exporters fear losing Indian market
  Date : 24-05-2025

India has imposed a ban on the import of seven categories of goods from Bangladesh through land ports, including ready-made garments, processed food items, and plastic products. The decision has already impacted exporters, as many consignments were held up at the border on Sunday (May 18), just a day after the announcement.

Exporters are now in distress, expressing concern over whether exporting at five times the current cost would even be viable. They warned that if land ports remain closed, exports to India will face severe disruption. Using seaports as an alternative would significantly increase both costs and transit time. Goods would have to be offloaded at Indian seaports such as Kolkata or Mumbai and then transported overland to their final destinations.

While this may still allow access to parts of mainland India, reaching India’s northeastern region—commonly referred to as the “Seven Sisters”—would become nearly impossible. Several exporters said they have always relied on land ports to export goods to India, as seaport routes are prohibitively expensive—almost five times more costly.

For deliveries to the northeastern states, goods would now need to be transported to Chattogram port, shipped by sea to Kolkata, and then sent overland through Assam, Meghalaya, Karimganj, and Agartala—an extremely roundabout and costly route.

Debashish Singh, Head of Business at Danish Food, told Jago News, “Bangladeshi products had a stronger presence in the Seven Sisters’ market than Indian domestic products. That’s because Bangladeshi companies could deliver there at lower costs compared to companies from mainland India. This move seems to be aimed at shutting down that advantage. It’s a major blow for our exporters.”

He noted that Bangladesh used to export goods through six key land ports, all of which are now closed under the new directive. India is currently allowing imports from Bangladesh only through the seaports of Kolkata and Mumbai—routes rarely used by Bangladeshi exporters due to cost and logistical complexity.

Until now, exporters sent goods to the northeastern states through land ports like Akhaura in Brahmanbaria, Chatlapur in Moulvibazar, and Sheola and Tamabil in Sylhet. The transport cost for a 20-foot cargo container previously ranged between Tk 18,000 and 25,000. That same amount now only covers transport to Chattogram port. An additional Tk 100,000 is required to ship and transport goods from Kolkata to destinations such as Assam, Meghalaya, Karimganj, or Agartala.

Shamim Ahmed, President of the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), told Jago News, “Transporting goods via sea at such high costs will make us uncompetitive. We’ve never exported through sea routes before. If forced to do so, our exports will effectively stop. Over 50 companies in Bangladesh export plastic products, and they’re all set to lose a major market.”

Akij Food and Beverage Limited, a major exporter of soft drinks to India, is also facing uncertainty. Mahedul Islam, Head of Marketing at the company, said, “Following India’s decision, we’ve halted production for existing Indian orders. We used to export between 400,000 and 500,000 cartons annually. Now, everything is uncertain.”

He added, “This decision will hurt both Bangladeshi exporters and Indian consumers, who will be deprived of high-quality products at affordable prices. We hope both governments will engage in dialogue and reach a mutually beneficial resolution soon.”

Debashish Singh of Danish Food further stated, “Even though we technically have the option to export via sea routes, the cost will be unmanageable. Previously, we could easily send products to Assam, Guwahati, Meghalaya, Tripura, and Mizoram by just crossing the border. With this new route, involving sea shipping and multiple transport changes, we simply won’t be able to stay competitive.”

Exporters also pointed out that under the new system, goods would need to be shipped from Chattogram or Mongla port to India’s Haldia port in Kolkata, and then transported to the northeastern states via separate inland logistics. This process could take nearly a week—compared to just one day via land ports previously.



  
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