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Published : 10 Jun 2025, 01:19 AM
Indian Shipping Minister Sarbananda Sonowal has acknowledged that India will also suffer thanks to the recent withdrawal of the transshipment arrangement to Bangladesh and trade restrictions on land ports.
As a result, he said, trade on the “Indo-Bangladesh Protocol” (IBP) routes connecting Kolkata to the country’s northeastern region through Bangladesh waterways will be affected.
According to The Hindu Business Line, cargo volumes via the IBP routes have decreased by 20 percent.
The world’s longest cruise, MV Ganga Vilas, is eyeing a truncated route, avoiding Bangladesh waters. In fact, bookings for the cruise are yet to happen, the Indian business newspaper said, citing sources.
TRADE RETALIATION
Following a shift in the political landscape in Bangladesh, India officially revoked the transshipment agreement on Apr 8.
The agreement allowed Bangladesh to export to third countries by transiting through Indian land customs stations. It facilitated the movement of goods from Bangladesh to ports and airports in India for onward shipment to destinations in Europe, West Asia, and beyond.
India cited logistical challenges, including congestion at Indian ports and airports, as the primary reason for revocation.
Later that month, Dhaka announced the closure of land ports to Indian yarn exports; disrupting supply chains to textile mills in India, especially those producing dyed and value-added yarns.
Subsequently, India responded with a trade countermeasure - cutting off land port access for seven categories of products, including Bangladesh’s ready-made garments.
The Hindu Business Line wrote the impact of these curbs is “significant”.
India has now limited Bangladeshi ready-made garment shipments to just two ports—Kolkata and Nhava Sheva—effectively shutting out all 11 land ports in the northeast, including those in Tripura, Assam, Meghalaya, Mizoram, and West Bengal’s Phulbari and Changrabandha.
IMPACT ON IBP
The IBP is built upon the shared use of water links between Bangladesh and India, operating through India's Ganges, Brahmaputra and Barak rivers and Bangladesh's Jamuna, Meghna and Gomti.
Sonowal said in an interview with the newspaper, “The main trade on the IBP route is the export of fly ash from power plants in West Bengal to Bangladesh. Currently, nearly 4.47 million tonnes of fly ash are being evacuated from these power plants.
“The discontinuation of fly ash transportation from West Bengal to Bangladesh will adversely impact the operation of thermal power plants.”
“Additionally, connectivity to the northeast through the IBP route will also be disrupted,” he added.
As part of the IBP routes, India also has access to Bangladesh’s Mongla Port.
The Indian minister said: “Mongla Port has a berth for inland vessels. Due to the restrictions, trade between Kolkata and Mongla will also be affected.”
