Big blow to Bangladesh, India imposes BAN on these major Bangladeshi goods

India has imposed a complete ban on the export of ready-made garments and several other consumer goods from Bangladesh through land ports. This decision by India is seen as a retaliatory action. The interim government of Bangladesh, led by Mohammad Yunus, has also responded to this situation. Sheikh Bashiruddin, the commerce advisor of the interim government, has announced that their government is committed to resolving all outstanding trade issues with India through negotiations.

Sheikh Bashiruddin said, “We have not yet received any official notification regarding this decision from the Indian government. Only when we receive official information will we be able to take appropriate action. If any problem arises, both parties will resolve it through mutual dialogue.”

What India has banned?

In a recent move, India has banned the import of readymade garments, fruits and fruit-flavored beverages, carbonated drinks, bakery products, snacks, chips, confectionery, cotton and cotton yarn waste, ready-made products made of plastic and PVC, and wooden furniture from Bangladesh via land routes.

Earlier, Bangladesh had banned the import of yarn (cotton thread) from India via land routes. India had also cancelled the trans-shipment facility for Bangladesh to export goods to third countries.

Sheikh Bashiruddin said, “We have received information through social media and news that India has taken some steps, particularly at the Akhaura and Dawki border points. Our priority is to achieve competitiveness, which is beneficial for both countries.”

He further said, “We are geographically connected countries. Competition, transportation costs, and other factors are certain. For this reason, we periodically impose bans on the import of our agricultural products, and India does so as well. This is a process of trade management, and we are working on it. If any problems arise, both parties will work together to find a solution.”

Reports indicate that India’s decision will affect Bangladesh’s exports by approximately 770 million dollars, which accounts for about 42 percent of Bangladesh’s total exports. Following India’s restrictions, Bangladesh will now have to send its ready-made garments through Mumbai’s Nhava Sheva port and Kolkata port, which is expected to increase costs. India has clarified that the import of ready-made garments from Bangladesh will not be permitted through any land port; however, it will be allowed only through Nhava Sheva and Kolkata ports.