Bangladesh-India Trade via Benapole Port Drops 50% in FY2025-26 Amid New Trade Restrictions

The decline has affected Bangladesh's export earnings and government revenue while pushing hundreds of clearing and forwarding (C&F) agents, employees and port workers into financial hardship, stakeholders said.

Port statistics show that exports through Benapole dropped to 189,358 tonnes in FY2025-26, down from 381,440 tonnes in FY2024-25, a decline of 192,082 tonnes.

In FY2023-24, exports stood at 456,672 tonnes, meaning outbound shipments have fallen steadily over the past two fiscal years.

The export basket previously included jute and jute products, ready-made garments, chemicals, tissue paper, melamine products and fish.

However, traders say restrictions imposed by both countries have significantly reduced the movement of many of these goods through the land port.

Between 1 July and 15 July, during 13 working days, 3,038 Indian trucks carrying imported goods entered Bangladesh through Benapole, while only 753 Bangladeshi trucks crossed into India with export cargo.

Under normal trading conditions, around 450-500 trucks entered Bangladesh daily from India, while 250-300 trucks carried exports to India.

Import volumes have now fallen to around 200-300 trucks a day, while daily export trucks have dropped to fewer than 100.

Business leaders attributed the decline to reciprocal trade restrictions introduced after August 2024, combined with the impact of the global economic slowdown.

They said the restrictions have created a severe trade imbalance at Bangladesh's largest land port, affecting transport operators, warehouses, cargo handling businesses and thousands of workers on both sides of the border.

According to trade stakeholders, India suspended the use of its airports for Bangladeshi exports to third countries on 8 April 2025.

Bangladesh later banned yarn imports from India through land ports following demands from the Bangladesh Textile Mills Association to protect domestic industries.

On 17 May 2025, India imposed further restrictions on land-port trade involving garments, cotton, cotton waste, plastics, wooden furniture and fruits.

India subsequently suspended land-port imports of jute and jute products on 26 June, before extending restrictions on 11 August to four additional textile and jute-based product categories, including jute fabrics, ropes, twines and jute sacks.

Mustafizzoha Selim, office secretary of the Benapole C&F Agents Association, said Bangladesh should pursue alternative export destinations if Indian restrictions continue.

"We urge the government to take immediate diplomatic initiatives to secure the withdrawal of India's restrictions while simultaneously expanding access to alternative export markets," he said.

Matiar Rahman, president of the Benapole Land Port Importers and Exporters Association, said Bangladesh should utilise the Bangladesh-India-Nepal-Bhutan transit arrangement more effectively to increase exports to Nepal and Bhutan and reduce the current trade deficit.

He also called for the restoration of products currently barred from land-port trade.

Shamim Hossain, traffic director of Benapole Land Port, said political developments and reciprocal restrictions had significantly reduced cargo movement through the country's busiest land port.

"Trade volume has fallen considerably compared with normal times. As trade declines, government revenue collected through the port is also falling. The situation is affecting both Bangladesh and India," he said.