BANGLADESH’S exports to northeastern states of India through Akhaura land port has drastically declined since India started transit shipment of essential goods from last June. Contrary to Bangladesh’s hopes that transit will equally benefit both countries, it appears that Akhaura land port has virtually turned into wasteland as direct export from Bangladesh has almost totally dried up. Most clearing forwarding agents who were working at the Port have also closed their shutters and laid off several hundred staff and workers.
News report in a national daily on Thursday said transit has sharply impacted Bangladesh’s exports to northeastern states of India instead of creating more exports and huge revenue from transit fees as the government had earlier claimed. Indian northeast had so long depended on export of construction materials, fish and beverage items from Bangladesh as the cheapest source from across the border compared to supply from mainland through Shiliguri corridor crossing over thousand kilometers of distance. They would import at least 40 items such as cement, plastic goods, corrugated iron sheet, iron rod, stone, fish and refreshment drinks. But ever since India secured the transit passage its suppliers are sending these materials direct from the mainland knocking out Bangladeshi exporters from their advantageous position.
India pays only Tk 192.22 for per ton of goods using river transit making supply from mainland rather cheaper in terms of transport cost. Even Bangladesh government has turned down Bangladesh Tariff Commission’s recommendation to fix the transit fee at Tk 1058 to allow low cost transport. It appears Bangladesh is now on the loser side in all aspects and it is in India’s interest not to destroy Bangladesh’s business. Even early this year long queues of trucks at Akhaura land port were a common scene to enter India and unload exports from Bangladesh. But India has just stopped importing most such materials. The trade balance with India is almost ten times now against Bangladesh and many doubt that the country may become a captive Indian market if some reciprocity is not playing a role in the process.
In our view it is high time Bangladesh government should take the issue with Indian government to protect the country’s business. We have offered transit despite critical opposition by many because we thought India needs it for easy connectivity with the northeast. But in return the drying up of our exports to northeast is not acceptable. India’s tariff and non-tariff barriers on Bangladesh’s export to Indian mainland are also contrary to duty free trade from our sides. Regular killing of our nationals on border also gives us a sense of betrayal. We must say this is not the way bilateral relations can go a long way but the reality is that we have to live together respecting each other’s interest.
India pays only Tk 192.22 for per ton of goods using river transit making supply from mainland rather cheaper in terms of transport cost. Even Bangladesh government has turned down Bangladesh Tariff Commission’s recommendation to fix the transit fee at Tk 1058 to allow low cost transport. It appears Bangladesh is now on the loser side in all aspects and it is in India’s interest not to destroy Bangladesh’s business. Even early this year long queues of trucks at Akhaura land port were a common scene to enter India and unload exports from Bangladesh. But India has just stopped importing most such materials. The trade balance with India is almost ten times now against Bangladesh and many doubt that the country may become a captive Indian market if some reciprocity is not playing a role in the process.
In our view it is high time Bangladesh government should take the issue with Indian government to protect the country’s business. We have offered transit despite critical opposition by many because we thought India needs it for easy connectivity with the northeast. But in return the drying up of our exports to northeast is not acceptable. India’s tariff and non-tariff barriers on Bangladesh’s export to Indian mainland are also contrary to duty free trade from our sides. Regular killing of our nationals on border also gives us a sense of betrayal. We must say this is not the way bilateral relations can go a long way but the reality is that we have to live together respecting each other’s interest.
