Trade organisations in Tripura, India, have urged the central government to address the growing trade deficit with Bangladesh, which has widened since Muhammad Yunus assumed office in August last year.
Reports suggest that Bangladesh’s exports to Tripura and other northeastern states have increased, with goods such as fish, cement, food items, construction materials, steel sheets, PVC pipes, soft drinks, ready-made garments, melamine, and cotton waste being sent across the border.
In return, Indian states export commodities such as broken stone, maize, incense sticks (agarbatti), fresh ginger, dry chillies, vegetable seeds, various spices, and wood apples to Bangladesh.
Trade bodies argue that, despite a decline in exports, large quantities of sugar, medicines, cosmetics, and other food products are being smuggled into Bangladesh with the assistance of local villagers near the border, inadequate border security, and unregulated infiltration. This situation is adversely affecting the economies of both nations, according to a report by The Times of India.
A spokesperson highlighted that exports from Tripura to Bangladesh have dropped significantly in recent months, while imports have remained stable.
“Tripura’s exports to Bangladesh amounted to just ₹50.07 crore up to February in the current financial year, compared to ₹121.37 crore in 2022-23 and ₹12.31 crore in 2023-24. Meanwhile, imports from Bangladesh reached ₹625.14 crore this fiscal year (up to February), ₹703.67 crore in 2023-24, and ₹636.72 crore in 2022-23,” stated Chakma.
Although modern infrastructure has been established at eight of the nine land customs stations (LCSs) along the India-Bangladesh border in Tripura, formal trade has not met expectations. In an effort to curb informal trade, India set up two Border Haats in the South Tripura and Sepahijala districts a decade ago. However, one of these markets has remained closed since the Covid-19 pandemic in 2020.
The Srinagar Border Haat in South Tripura was reopened in November last year after being shut due to political unrest in Bangladesh. However, it has yet to regain its former popularity, with half of the registered traders from both nations failing to attend on weekly market days. Meanwhile, authorities in both countries have delayed the reopening of the Kasba Border Haat in Sepahijala district, citing concerns over low participation.
