India has imposed a ban on the import of nearly seven types of products, including processed food items and garments, from Bangladesh through land ports. This move is expected to severely disrupt the export of Bangladesh’s processed food products to India. In the last fiscal year 2023-24, Bangladesh exported goods worth approximately $157 crore to India, with garments and processed foods being the major categories.

Bangladesh has been exporting processed food products to India for more than three decades. India is one of the largest markets for Bangladeshi processed foods, not only in its mainland but also in the northeastern states known as the Seven Sisters.

According to the new restrictions, export of fruits, fruit-flavored beverages, soft drinks, various processed foods, plastic products, yarn and yarn-based items, and furniture to Assam, Meghalaya, Tripura, and Mizoram through Land Customs Stations (LCS) or Integrated Check Posts (ICP) will no longer be allowed. This ban also applies to the LCS at Changrabandha and Phulbari in West Bengal.

Commenting on the situation, Kamruzzaman Kamal, Marketing Director of PRAN-RFL Group, told Jago News that the ban on land import of goods will practically halt exports to India because maritime transport is not competitive for Bangladeshi companies due to higher costs and longer transit times. Moreover, sea routes do not serve all destinations, especially the biggest market in the northeast.

Kamal stated, “The ports we used for exports have been closed. If India enforces this restriction on imports through land ports, our exports will be severely disrupted, essentially halted. We expect the government to take necessary initiatives regarding this.”

Debashish Singh, Head of Business at Danish Food, said that the ban seems aimed at blocking the advantage Bangladeshi products had in the Seven Sisters market over Indian products, as Bangladeshi companies could deliver goods at lower costs than Indian mainland companies. He called this a major setback for Bangladeshi companies.

Singh added that Bangladesh uses six land ports for exports to India, all of which have now been closed. India is now allowing imports only through the sea ports of Kolkata and Mumbai, which are not practical for exporters as shipments to northeast India do not happen via these ports.

He further explained, “Earlier, once our goods crossed the border, they could reach Assam, Guwahati, Meghalaya, Tripura, and Mizoram by land. Without land routes, we must transport via sea, involving long detours and multiple transshipments, making it impossible to stay cost-competitive.”

Earlier in April, India also withdrew the facility allowing Bangladesh to use its ports for transshipment to third countries. Now, with restrictions on land ports for food and other goods, these decisions negatively affect Bangladesh’s exports. Exporters and economists expect the Bangladesh government to take serious steps in response.

Selim Raihan, Executive Director of the South Asian Network on Economic Modeling (SANEM), said such non-tariff barriers create complexities for Bangladeshi exporters and hinder the growth of bilateral and regional trade. He emphasised that while regulatory oversight is a sovereign right, sudden and selective bans, especially on land trade routes, increase costs and create uncertainty. He hopes these non-tariff barriers will be reconsidered in the spirit of bilateral and regional cooperation. Constructive dialogue and better coordination in trade facilitation will support smooth, inclusive, and sustainable economic growth for both countries.

Regarding the issue, Mahbubur Rahman, Secretary of the Ministry of Commerce, said the matter is being closely examined. He acknowledged that such restrictions harm businesspeople from both countries, and that discussions with India on this matter will be held soon.