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Bangladeshi exporters and importers are facing up to 20% higher costs in trading with India as retaliatory non-tariff measures disrupt long-standing land port routes and push goods through the costlier sea route.

Annual bilateral trade between the two neighbours exceeds $15 billion, with India serving as Bangladesh’s second-largest source of commodities and raw materials after China. But since April, both sides have introduced restrictions that businessmen say are straining operations and eroding competitiveness.

The trouble began when India suspended transshipment facilities for Bangladeshi exports to third countries. Dhaka responded by halting yarn imports through 11 land ports. New Delhi then restricted imports of Bangladeshi garments, processed food, plastics, furniture, yarn, and recently, raw jute and jute products.

Rising costs and lost orders

With most land ports choked, shipments are being rerouted through Chattogram port, adding delays and driving up transport costs.

“We send around $7 million worth of garments to India annually, mostly via land. Rerouting through Chattogram has pushed up costs by 20%,” said the chairman of Energypac Fashions Ltd. “Indian importers are now complaining about long lead times and higher charges.”

Another garment exporter, requesting anonymity, said his Indian partner cancelled $2 million in orders due to the restrictions and began sourcing from domestic suppliers instead.

Md Abdul Wahed, honorary joint secretary general of the India-Bangladesh Chamber of Commerce and Industry (IBCCI), said imports from India through certain land ports have fallen by more than 50% in volume. “Where 400 trucks once crossed daily, now only 150 do,” he said.

Officials press for talks

Commerce Secretary Mahbubur Rahman confirmed he has written three times to his Indian counterpart seeking talks but has received no response. “Because of the non-tariff barriers, the cost of business operations has risen by 20%,” he said.

He added that no secretary-level meeting between the two countries has been held in 18 months, although such forums are typically where major trade issues are resolved.

Trade flows shifting

According to the National Board of Revenue (NBR), exports to India through Chattogram port surged 139% year-on-year in the first eight months of 2025 to $338.2 million, up from $141.4 million a year earlier.

But shipments through 11 land ports, along with Mongla and Pangaon, dropped nearly 15% in value and 19% in volume over the same period.

Wahed warned that the longer the standoff continues, the more both countries’ businesses will suffer: “The trade relationship is not normal now. What once cost Tk 1 is now costing Tk 10.”