Benapole port sees 73,000-tonne trade deficit in essential goods in FY25
The government has not yet implemented a quota agreement with India for importing eight essential commodities, even three years after it was signed.
In the 2024-25 fiscal year, imports of several essential commodities such as wheat, lentils, onions, and chillies from India through Benapole port decreased compared to the previous year, even though rice imports increased.
In FY2023-24, the total import through the port was 1,08,059 tonnes, while in FY2024-25 the volume stood at 34,860 tonnes. Compared to FY2023-24, imports of consumer goods in FY2024-25 fell by 73,199 tonnes, resulting in a national trade deficit of 73,200 tonnes in food and other essentials.
People involved in trade said the situation arose because of continuing bans on several products, rising export prices, and various conditions imposed by India.
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Meanwhile, the government has not yet implemented a quota agreement with India for importing eight essential commodities, even three years after it was signed.
As a result, the deficit in food imports continues to increase every year, keeping the prices of daily necessities high throughout the year.
Traders have urged the interim government to intervene to improve the situation.
Those involved in commerce said Bangladesh has to depend on imports for most essential goods because domestic production capacity is insufficient to meet annual demand.
A major portion of these products comes from neighbouring India. However, the country has been frequently imposing sudden export bans, raising prices, and setting stricter conditions, causing the trade deficit to widen year after year.
Unscrupulous traders are also taking advantage of the supply shortage by hiking prices, making life harder for low-income people.
To overcome the situation, Bangladesh and India held a commerce minister-level meeting in New Delhi on 22–23 December 2022 to discuss the quota agreement.
Under the proposal, Bangladesh requested annual import quotas from India of 45 lakh tonnes of wheat, 20 lakh tonnes of rice, 7 lakh tonnes of onions, 15 lakh tonnes of sugar, 1.5 lakh tonnes of ginger, 30,000 tonnes of lentils, and 10,000 tonnes of garlic.
If the quota were approved, India would not be able to suddenly stop exports or raise prices, which would help keep commodity prices stable and reduce food shortages.
However, as the agreement has yet to be implemented, import deficits continue to grow every year.
Aminul Haque, vice-president of the Benapole Import-Export Association, said, "Due to the change of government and import complications, the trade deficit at Benapole port has increased."
Mostafizjoha Selim, office secretary of the Benapole Customs C&F Agents Association, said, "A change of government is normal, but we hope that despite political shifts the Indian government will remain consistent in its trade policy."
Mizanur Rahman Khan, president of the Jashore Chamber of Commerce and Industry, said, "If the quota agreement with India is implemented, the trade deficit will decline. For that, discussions between the two governments must continue; otherwise, a widening trade deficit will affect the domestic market."
Abu Talha, deputy director of the Benapole Plant Quarantine Centre, said imports through the port decreased in FY2024-25 compared to FY2023-24. Imported goods are released only after quality testing and certification, he added.
According to data from the Benapole Plant Quarantine Centre, in FY2023-24 Bangladesh imported through Benapole: 21,384 tonnes of rice, 78,947 tonnes of lentils, 200 tonnes of onions, 431 tonnes of ginger, 7,152 tonnes of chillies, and 4,963 tonnes of potatoes.
In FY2024-25, the import volumes were: 1,150 tonnes of rice, 1,000 tonnes of lentils, 15,295 tonnes of onions, 60 tonnes of ginger, 9,447 tonnes of chillies, and 3,084 tonnes of potatoes. No sugar or wheat was imported in either fiscal year.
According to the Department of Agricultural Extension, Bangladesh's annual demand for onions is 32 lakh tonnes, while production stands at 27 lakh tonnes. Annual rice demand is 3.6 crore tonnes, while production stands at 4.15 crore tonnes.
Demand for sugar is 18–20 lakh tonnes, but production is only 1 lakh tonnes. Wheat demand is 70 lakh tonnes, while production stands at 12 lakh tonnes.
Annual potato demand is 90 lakh tonnes, and production last year was 1.29 crore tonnes. Demand for ginger is 3 lakh tonnes, with production of around 2 lakh tonnes. Demand for garlic is 6 lakh tonnes, and production last year was 6.09 lakh tonnes.
