India notifies port restriction move on Bangladeshi exports

New Delhi [India], May 20 (ANI): The port restriction on import of certain goods from Bangladesh to India has been notified in the Gazette of India.
The official gazette notification was issued on Monday and published today.
India has imposed restrictions on the entry of Bangladeshi ready-made garments (RMG) and other products through its northeastern land ports -- Assam, Meghalaya, Tripura, Mizoram -- and Fulbari and Changrabandha in West Bengal, weeks after controversial remarks made by Bangladesh's interim chief advisor Muhammad Yunus about the India's northeastern region, during his visit to China.
During a speech in China, Bangladesh's Chief Adviser Yunus had described India's northeastern states as a "landlocked region with no access to the ocean." This comment has sparked diplomatic friction, with Indian officials viewing it as undermining the region's connectivity and status.
The new restrictions will, slapped on May 17 and came into effect immediately, forced Bangladesh to reroute exports -- including Ready-Made garments (RMG), plastics, melamine, furniture, juices, carbonated drinks, bakery items, confectionery, and processed foods -- through Kolkata port in West Bengal or Nhava Sheva port in Maharashtra, sharply increasing logistics costs.
With 93 per cent of Bangladesh's exports to India previously moving through these land routes, the impact on its ready made garments sector -- which exports nearly USD 740 million worth of garments to India annually -- could be severe.
The move is expected to disrupt Bangladesh's garment industry, raising costs and limiting market access, while creating new opportunities for Indian manufacturers.
India's restrictions on imports from Bangladesh via land ports will impact goods worth USD 770 million, accounting for nearly 42 per cent of total bilateral imports, according to the Global Trade Research Initiative (GTRI) report, a trade-focused research group.
The May 17 directive makes clear that imports of essential items like fish, LPG, edible oil, and crushed stone remain unaffected. Goods transiting through India from Bangladesh to Nepal and Bhutan are also exempt.
The Indian government has imposed land port restrictions on certain Bangladeshi exports to the northeastern states, a move that sources say is aimed at restoring "equality in the relationship".
The sources further said that while India had hitherto allowed all exports from Bangladesh without restrictions, the transit and market access to India's northeast region had been restricted by Bangladesh. The sources further said that the relationship with Bangladesh will now be on "reciprocal terms".
India limiting imports from Bangladesh to only two seaports, according to the sources, is a reciprocal measure to Bangladesh -- which had imposed similar trade restrictions on Indian yarn and rice, besides selectively enhancing inspection on all Indian goods exported to Bangladesh.
The sources further noted that Bangladesh needs to realise that "it cannot cherry pick terms of bilateral trade solely for its benefit or assume North East is a captive market for its exports, while denying it market access and transit." (ANI)