National: The Indian government has announced the imposition of port restrictions on the import of several categories of goods originating from Bangladesh, including readymade garments and processed food items. The Directorate General of Foreign Trade (DGFT), operating under the Commerce Ministry, formalized this decision through a notification issued on May 17th.
According to the official notification, readymade garment imports from Bangladesh will now be exclusively permitted through the seaports of Nhava Sheva and Kolkata, effectively prohibiting their entry via any land port. Furthermore, a range of other goods, encompassing fruits, flavored and carbonated drinks, processed food items (such as baked goods, snacks, chips, and confectionery), cotton and cotton yarn waste, finished plastic and PVC products, dyes, plasticizers and granules, and wooden furniture, will no longer be allowed to enter India through Land Customs Stations (LCSs) and Integrated Check Posts (ICPs) located in Assam, Meghalaya, Tripura, and Mizoram, as well as the LCSs of Changrabandha and Fulbari in West Bengal.
The notification explicitly states that these newly implemented port restrictions will not apply to the import of essential commodities such as Fish, LPG, Edible Oil, and Crushed stone from Bangladesh. This policy change is being enacted with immediate effect through the introduction of a new paragraph within India’s import regulations governing these specific goods from the neighboring nation.
This move follows India’s recent withdrawal, on April 9th, of the transhipment facility previously extended to Bangladesh for its exports to various international markets, excluding Nepal and Bhutan. This earlier decision came in the wake of controversial remarks made by the head of Bangladesh’s interim government, Muhammad Yunus, in China. Yunus reportedly stated that India’s seven northeastern states, sharing a substantial border with Bangladesh, are landlocked and dependent on Bangladesh for oceanic access. These comments sparked considerable unease and criticism across the Indian political spectrum.
Indian exporters, particularly within the apparel sector, had also previously advocated for the withdrawal of the transhipment facility. Moreover, bilateral relations between India and Bangladesh have reportedly deteriorated following Yunus’s perceived failure to adequately address attacks on minority communities, notably Hindus, within Bangladesh.
Bangladesh stands as a significant competitor to India in the textile industry. The total trade volume between the two nations reached USD 12.9 billion in the fiscal year 2023-24. Official sources indicate that India had previously maintained a relatively open policy towards Bangladeshi exports, allowing entry through all LCSs, ICPs, and seaports without significant restrictions. However, it is alleged that Bangladesh has imposed its own port restrictions on Indian exports, particularly at LCSs and ICPs bordering the northeastern states.
Reports suggest that yarn exports from India via land ports were halted around April 13th of this year, and Indian shipments have been subjected to stringent inspections upon entry into Bangladesh. Additionally, rice exports from India through the Benapole ICP have reportedly been disallowed since April 15th, adding to existing trade impediments. Indian officials contend that industrial growth in the northeastern states is being hampered by what they describe as unreasonably high and economically unviable transit charges levied by Bangladesh.
Furthermore, due to landport restrictions imposed by Bangladesh, the northeastern states are allegedly facing limited access to the Bangladeshi market for selling locally manufactured goods, confining market access primarily to basic agricultural products. Conversely, Bangladesh is said to enjoy unrestricted access to the entire northeastern Indian market. The official source also indicated that the list of goods subject to the new notification will be periodically reviewed to ensure balanced and equitable growth in the northeastern states.
Bangladesh has also recently implemented restrictions on the export of Indian yarn through land ports, channeling such exports exclusively through seaports. In response to these actions, an unnamed Indian official stated, “It has been decided to reciprocate this measure by imposing port restrictions.” The official further noted that Bangladesh exports over USD 700 million worth of readymade garments to India annually, emphasizing that “Bangladesh cannot cherry-pick terms of bilateral engagement solely to benefit itself or take India’s market access for granted. India is willing to engage in discussion, but it is Bangladesh’s responsibility to create an environment free of rancour.”
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