Benapole port still in trade slump; imports down 75,746 tonnes

Highlights:

• Trade with India declined significantly despite government change
• Imports and exports through Benapole dropped sharply year-on-year
• Multiple Indian trade restrictions severely reduced Bangladesh's export flow
• Bangadesh also imposed bans, further slowing bilateral trade volumes
• Poor port infrastructure continues to hinder trade expansion efforts
• Rail and road services disrupted, worsening overall trade shortfall

Even a year after the change of government, Bangladesh's trade relations with India have not improved as expected. One obstacle after another has reduced the volume of imports and exports through the Benapole land port.

In the last fiscal year, imports through the port fell by 75,746 metric tonnes compared to the previous year, while exports dropped by 75,232 metric tonnes. Rail-based trade also recorded a shortfall of 29,000 metric tonnes.

According to Benapole Customs, Bangladesh imported 2,038,780 metric tonnes of goods from India through the port in the fiscal year 2024–25. The volume was 2,114,509 tonnes in 2023–24.

Imports stood at 1,445,000 metric tonnes in 2022–23 and 2,114,000 metric tonnes in 2021–22. Before that, imports totalled 2,644,000 metric tonnes in 2020–21, 2,038,064 metric tonnes in 2019–20, and 2,011,006 metric tonnes in 2018–19. Traders said the global slowdown and various trade barriers contributed to the decline.

They warned that without quick steps to lift restrictions on imports and exports, the country may face a deeper trade and revenue shortfall. Port officials said they will raise the issues in trade meetings if the government instructs them.

Trade officials said that until 5 August last year, Benapole handled the daily import of 500–600 Indian trucks and the export of 250–300 Bangladeshi trucks. After the government changed, political unrest emerged and later affected trade.

Since then, India has imposed restrictions on imports from Bangladesh three times. On 8 April, India's ban also stopped the export of garment products to third countries through Indian airports using road transport.

On 17 May, India issued another notification banning the import of ready-made garments, yarn, plastic goods, wooden products, and fruit-based items from Bangladesh through land ports.

Infograph: TBS

Earlier, on 15 April, Bangladesh halted the import of several Indian products to protect local industries. These include yarn, newsprint, cigarette paper, duplex board, kraft paper, potatoes, powdered milk, tobacco, radio and TV parts, bicycles, formica sheets, ceramicware, sanitaryware, stainless steelware, marble slabs and tiles, and mixed fabrics.

In the last fiscal year, imports through Benapole fell by 631,330 metric tonnes, while exports dropped by 75,232 tonnes. Rail trade recorded a deficit of 29,000 tonnes.

Mostafizjoha Selim, office secretary of the Benapole Customs C&F Agents Association, said changes in government are normal. "We only hope that India keeps its trade policy steady, regardless of political changes," he said.

Ziaur Rahman, general secretary of the Benapole Landport Importers and Exporters Association, said repeated Indian restrictions were widening the trade gap. "Bangladesh has also imposed bans on several imported items, and together these steps have reduced the movement of many essential goods," he said.

Matiar Rahman, chairman of the India-Bangladesh Landport Import-Export Committee, said weak port facilities continued to limit trade expansion. "Traders want to move more goods through land routes, but poor infrastructure is holding us back," he said.

He said that the four-country BBIN road trade agreement among Bangladesh, India, Nepal and Bhutan had not progressed.

"The interim government should focus on improving the infrastructure of ports that have high demand and good transport links," he added.

Aynal Hasan, station master of Benapole Railway Station, said the last rail consignment arrived on 23 November, when importer ACI Motors brought in 100 tractors from India. 

"Since 5 August last year, India's restrictions have stopped passenger train services on the Dhaka–Benapole–Kolkata route," he said.

Md Shamim Hossain, director of Benapole Land Port, said daily trade had fallen because of the bans.

"On 25 November, 243 trucks carrying Indian goods entered through Benapole, and 45 Bangladeshi trucks exported goods to India," he said.

He added that the port was trying to speed up clearance for the goods still moving.

"Trade meetings at the border have been suspended, which delays the resolution of many issues. But if both governments agree, these meetings can resume," he said.