India-Bangladesh garment trade hit: How the last truck came in through Petrapole minutes before restrictions kicked in 

India-Bangladesh garment trade hit: How the last truck came in through Petrapole minutes before restrictions kicked in 

Petrapole is the largest land port in South Asia. Located along the international border between India and Bangladesh, it accounts for nearly 30 per cent of land-based trade between the two countries 
| Photo Credit:
Bloomberg

 

Minutes after a truck, with the number ‘DMTA – 15 4551’, crossed into Petrapole, West Bengal, from Benapole in Bangladesh, on Saturday, India announced a set of restrictions on certain exports from the neighbouring country. Tightening the noose around cross-border movement of goods like garments, canned juices and food items, cotton textiles, etc. India imposed land port curbs on Bangladeshi exports.

The move came following a notification issued on Saturday. The truck, that carried readymade garments worth ₹12-15 lakh for one ‘Reliance Retail India’, said sources at Petrapole land port office, was effectively the last such shipment in the last 24 hours. 

Petrapole is the largest land port in South Asia. Located along the international border between India and Bangladesh, 80 km from Kolkata, the land port accounts for nearly 30 per cent of land-based trade between the two countries. 

“Since 7 pm on Saturday, no readymade garment shipments have come in. These will no longer come via land ports, till further orders,” an official in the know told businessline

Of the 120-180 trucks that cross over from Benapole to Petrapole daily – now halved from the 300-odd at its peak – nearly 50 per cent (60-80) trucks carried readymade garments. 

36 trucks await nod

On Sunday afternoon, there were at least 36 trucks – which have already obtained clearances from the Bangladeshi side – awaiting a green light from the Indian side, to cross over. All the trucks contain readymade garments valued at approximately ₹6 crore-odd , said sources. 

Other key import items include briefcases, jute yarns, hydrogen peroxide, bags and cotton rags. 

Between FY18 and FY24, trade through Petrapole surged from ₹18,799 crore to ₹30,421 crore. Even though trade was slightly lower at ₹20,605 crore and ₹15,771 crore, during the Covid years (FY20 and FY21), it rose significantly to ₹29,407 (FY22) and ₹30,379 crore (FY23), as per data from the Land Ports Authority of India. 

“Nothing can be done at this moment. Trucks in Bangladesh holding area cannot cross over. Either they wait, or be re-routed through designated sea ports as the notification says,” a second official said. 

Alternatives in discussion

A Indian trader said nearly 90 per cent of advance payments have been made for garment shipments coming from Bangladesh. The remaining payment of 10 per cent is generally done post delivery. 

“Now, there are talks to re-route the garment stocks through either the Kolkata port (in Khidderpore) – for Eastern and Northern markets – or to Mumbai, if these shipments are for the West,” added a trader. 

Re-routing would involve a “substantial cost escalation”, which is to be borne by the importer, sources said. This makes it non-lucrative for the importer. 

As per the May 17 notification, imports will be regulated through select sea ports like in Kolkata (Haldia Port or Khidderpore Port) and Mumbai’s Nhava Sheva. 

Other land ports 

There will also be regulation on movement of goods through land custom stations and integrated check posts in Assam, Meghalaya and Tripura, and two other places in West Bengal – that include Changrabandha and Fulbari. 

In case of the Agartala land port (Tripura) trade moved up from ₹236 crore in FY18 to ₹317 crore in FY24. However, last reported trade numbers are less than half of what was reported in peak FY22 of ₹844 crore. 

The Dawki land port (Meghalaya) reported ₹132 crore of bilateral trade in FY24, as per numbers available with the Land Port Authorities. 

In case of Sutarkhandi (Assam) land port, bilateral trade has moved up significantly from ₹162 crore in FY18 to ₹352 crore on FY24. But here, too, there has been a fall in numbers from the FY22 peak of approximately ₹500 crore worth of trade. 

Chandrabhaga and Fulbari (both in West Bengal) are still listed as land ports that are “under development”. 

Published on May 18, 2025

This article first appeared on The Hindu Business Line

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