Rail, waterways trade between India and Bangladesh sees sharp contraction in FY25

Trade by rail between Bangladesh and India has suffered a 45% year on year contraction, with the average daily rake count dropping to 0.92 in FY25 (less than one rake) from 1.64 in FY24.

The India-Bangladesh Protocol Route (IBPR) waterways has also registered a 20% decline in cargo movement, say the Hindu Business Line.

Indian railways officials told businessline that nearly 600 rakes transported various goods to Bangladesh in FY24. This came down to around 330 in FY25 – the fiscal was marked by political upheaval and temporary trade suspensions along certain corridors, with a lingering overhang of bilateral trade tensions.

A "rake" in Indian Railways' parlance refers to a group of coupled freight wagons operating as a single unit. The configuration can vary by wagon type — a standard full rake might comprise 42 bogie covered wagons (BCN) with a 2,560-tonne capacity, or 58 bogie open wagons (BOXN) with a capacity of 3,828 tonnes.

Empty rakes

According to Indian officials, a significant proportion of rakes are now returning empty from Bangladesh, signalling a severe demand contraction in the neighbouring market.

"The number of rakes headed to Bangladesh has fallen substantially. A demand slowdown is a reality, compounded by the overhang of trade frictions," said an official.

Bangladesh was India's biggest trading partner in the subcontinent. India is its second-biggest export partner, accounting for 12% of the total exports to Bangladesh. The total trade turnover in FY24 touched $12.90 billion.

Trade turmoil

India has suspended passenger and cargo train movements since July. While passenger services remained suspended, limited cargo movement resumed in select segments a few months later, reports Business Line.

In August 2024 — when Prime Minister Sheikh Hasina fled the country amid intensifying turmoil — only 17 rakes moved from India to Bangladesh, compared to 52 in the same month the previous year, officials said.

Some recovery was noted September onwards.

Trade flows between India and Bangladesh rely on three key railway corridors: Gede–Darshana; Petrapole–Benapole and Radhikapur–Birol (which resumed freight operations in February 2025). 

All three land ports (Gede, Petrapole and Radhikapur) are located in West Bengal and constitute strategic nodes in bilateral logistics.

Shifting commodity preference 

Trade dynamics are undergoing a marked transformation.

Construction and infrastructure activities in Bangladesh have slowed dramatically post regime change, leading to corresponding adjustments in commodity demand. 

Stone loading declined by 30-40%, down to about 4 rakes per day from 6. Gypsum movement registered a complete halt. Ballast consignments (used for maritime stabilisation and railway track laying) fell by nearly 80%. Clay or kaolin consignments — essential for the cement industry — have ceased altogether. 

De-oiled cake (by-product of oil extraction from seeds that is used as animal feed) declined by 12%, yet remains one of the most heavily-transported commodities across the border. Maize movements are at zero; and that of par-boiled rice has just started. 

Conversely, automobile components recorded a surge of nearly 50%, while fly ash consignments (used in cement industry) increased by around 40%.

At Petrapole 

Indin officials revealed that negotiations are still being attempted to re-allow garment exports through key land ports like Petrapole, says Business Line-.

On May 17, India issued a trade directive mandating that garment shipments from Bangladesh be routed exclusively through two designated seaports — Kolkata (Khidderpore and Haldia) and Mumbai's Nhava Sheva. All other road and rail modes were suspended.

As a result, 38 trucks carrying garments – valued at approximately ₹6 crore – were stranded at the Benapole border crossing in from Bangladesh on May 18. Most of these have since returned to Dhaka, sources said.

Petrapole Land Port handles nearly 70% of India-Bangladesh bilateral EXIM (export-import) trade.

Apart from garments, the port continues to process consignments of agricultural products, FMCG goods, automobile parts, and truck chassis.

One scheduled garment shipment from Bangladesh was expected at Kolkata Port last week, but has yet to arrive, sources added.

"There's a bottleneck in the availability of container cargoes and barges at Bangladeshi ports, contributing to the delay," the source said.