Bangladesh and India Trade via Benapole Continues to Decline Amid Mutual Restrictions

Benapole Continues to Decline

Bangladesh: Trade between Bangladesh and India through the Benapole land port continued to weaken in FY2024–25 following a change of government, as reciprocal restrictions and political uncertainty weighed on bilateral flows. Bangladesh imported 20.39 lakh tonnes of goods from India via Benapole in FY2024–25, down from 21.14 lakh tonnes in FY2023–24, a decline of 75,746 tonnes. Exports through the port also fell by 75,232 tonnes year-on-year, while rail-based trade declined by 29,000 tonnes. Over the past years, imports through Benapole stood at 14.5 lakh tonnes in FY2022–23, 21.1 lakh tonnes in FY2021–22, 26.4 lakh tonnes in FY2020–21, 20.4 lakh tonnes in FY2019–20, and 20.1 lakh tonnes in FY2018–19. Overall, imports through the port declined by 631,330 tonnes in FY2024–25 compared to the previous year, raising concerns over potential revenue losses.

Before 5 August 2024, around 500–600 trucks of Indian goods entered Bangladesh daily through Benapole, while 250–300 trucks of Bangladeshi products were exported to India. Trade volumes dropped sharply thereafter, with India imposing multiple restrictions, including halting Bangladeshi garment exports to third countries via Indian airports on 8 April 2025 and banning several Bangladeshi products through land ports on 17 May. In response, Bangladesh restricted imports of various Indian goods on 15 April 2025, including yarn, paper products, food items, electronics parts, bicycles, ceramic and sanitary ware, stainless steel products, and marble tiles. The continued restrictions, coupled with infrastructure constraints, suspended bilateral trade meetings, the non-implementation of the BBIN land trade agreement, and the suspension of passenger train services on the Dhaka–Benapole–Kolkata route, have further constrained trade despite efforts to ensure faster cargo clearance.

Source: Daily Sun