Partial Resumption of Indo-Bangla Trade; Full Normalization on the Horizon

Trade between India and Bangladesh, which had been suspended since August 5, resumed partially through several land ports in West Bengal on Wednesday. Officials confirmed that trade, primarily involving perishable goods, recommenced at Hili, Changrabandha, Mahadipur, Fulbari, and Gojadanga land ports.

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Resumption of Trade Activities

Export activities from Petrapole, the largest land port in South Asia located in North 24 Parganas district of West Bengal, are anticipated to start on Thursday. This follows a meeting between the land port authorities of both countries. Sajedur Rahman, general secretary of the Benapole C&F Staff Association, stated, "A meeting was held between two land ports and we expect that trade will resume at 6 am tomorrow." Benapole is situated on the Bangladesh side of the Petrapole border.

The Director General of the Border Security Force visited Petrapole on Tuesday to assess the situation along the international boundary amid ongoing issues in Bangladesh. Joydev Sarkar, an office-bearer of the Carrying & Forwarding Agents Welfare Association, mentioned that some cargo movement has begun via Ghojadanga for the Bangladeshi side. He noted that this was possible because the situation in Bhomra, Ghojadanga's counterpart in Bangladesh, remains stable.

Key Commodities and Export Details

Key commodities such as black stone, chillies, turmeric, and wheat bran are exported to Bangladesh from the North 24 Parganas district land port. Another trader highlighted that trucks in Malda's Mahadipur are also being prepared for exporting cargo. An official from a C&F agent association at Bangladesh's Benapole port mentioned that trade has not yet resumed from the Petrapole border.

Ujjal Saha, secretary of the West Bengal Exporters Coordination Committee, noted that empty trucks which had gone to Bangladesh before the disturbances to unload exported goods are now returning. He reported some exports of perishable cargo on Wednesday from land ports like Hili, Changrabandha, Mahadipur, Fulbari, and Gojadanga. Businessmen from both sides have urged their respective authorities to prevent losses and expect the export situation to improve from Thursday.

India remains vigilant about the law and order situation in Bangladesh due to reports of attacks on minorities. Security has been increased at all land borders with Bangladesh. Bangladesh is India's largest trade partner in South Asia while India is its second-largest trade partner in Asia.

Trade Figures and Economic Impact

India's exports to Bangladesh decreased to USD 11 billion in 2023-24 from USD 12.21 billion in 2022-23. Imports also fell to USD 1.84 billion in the last fiscal year from USD 2 billion in 2022-23. India's main exports to Bangladesh include vegetables, coffee, tea, spices, sugar, confectionery, refined petroleum oil, chemicals, cotton, iron and steel, and vehicles.

In contrast, Bangladeshi exports to India are concentrated mainly in textiles and garments which make up 56 per cent of their shipments. The economic relationship between these two countries remains significant despite recent disruptions.

Trade activities between India and Bangladesh have shown signs of recovery through various land ports in West Bengal. Both nations are working towards stabilising trade flows amidst ongoing challenges.