How border trade restrictions are impacting lives, livelihoods in the northeast

Hindustan Times

5 days ago

The Union government's decision to restrict trade with Bangladesh over bilateral tension has impacted local economies in several border towns in northeastern states, locals said.
India has 13 land ports and four water ports with Bangladesh across northeastern states among which, Meghalaya's Dawki, Tripura's Akhaura, Assam's Sutarkandi are busiest, according to traders.
According to Amaresh Roy, general secretary of the Indo-Bangla Chamber of Commerce and Industries (Guwahati Chapter), the primary export products from the northeast are coal, stone, limestone, ginger, onion, rice, dry chilli and fruits. While the major imports include wooden furniture, plastic products, cement, GI Sheets, waste cotton, iron rods, fish, pickles, soft drinks, biscuits and some other food products.
'Most of the food and beverage items, plastic products and some others have been restricted and this will hamper Bangladesh more than India,' he said. 'The major companies in Bangladesh are dependent on our buyers, so in a period of time, they are going to understand the importance of India'
Roy said, nearly 3,500 traders in Northeastern states have Importer-Exporter Code (IEC) issued by Directorate General of Foreign Trade (DGFT) and they are directly involved in import-export. But more than 10,000 other businessmen are indirectly dependent on India-Bangladesh trade.
'Apart from the traders, truck owners and drivers, repair shops, food stalls, daily wage labourers to petrol pumps and many are dependent on these export-import businesses. And it is true that the lives of many would be becoming difficult if the ban continues for long,' he added.
Sribhumi's Sutarkandi land port is a major trade point between the two countries and the economy of this area is dependent on the trades, according to the local shopkeepers. Chandan Das, 35, is a goods loader who works at the Sutarkandi land-port in Sribhumi district and earns ₹100 to 150 for loading goods on one truck. 'Around 7 days back, I was earning ₹500 to 750 per day, during the working days but the situation suddenly changed and now I cannot even buy food for my kids,' he said, adding he is not opposing the ban as he is patriotic.
Salman Ali, owner of a tea-stall near Sutarkandi land-port, said that the fall of Sheikh Hasina's government in Bangladesh last year created difficulties for local businesses on both sides of the border and the uncertainty has intensified. 'This area is far from the (nearest) city (Sribhumi) but you'll see good restaurants here, life is better because of the flow of money. But this is fading, especially after August last year. And now, with this complete ban, life is going to become difficult,' he said.
The imposed restrictions, however, are important as it is connected to security, traders said. Local trader, Santanu Sutradhar said that none of the land ports in northeast have facilities to check the quality of food and quarantine them if required. So, the possibility of contaminating food reaching Indian consumers cannot be ruled out.
'After Operation Sindoor, Pakistan is trying to attack India in many ways and Bangladesh has extended support to them. Since a large amount of food products are entering India through Bangladesh, this gives the anti-India forces an opportunity to damage us internally,' he said.
MEGHALAYA
In neighbouring Meghalaya, the trade ban has disrupted traditional border commerce and impacted the livelihoods of thousands dependent on cross-border exchanges in the state.
According to officials from the state's commerce and industries department, Meghalaya recorded a revenue drop of approximately ₹2.54 crore within just five days of the halt in border trade. The export of coal, boulder stones, and limestone from Dawki, one of the busiest land customs stations, has also been suspended due to alleged procedural and weighing issues, coupled with reported political instability across the border.
'The situation is worrisome. Exporters, daily wage workers, truckers, and small traders are all affected. Dawki and Borsora are among the worst hit,' a senior trade official in Shillong said on condition of anonymity.
Border haats (temporary market spaces) —weekly cross-border markets that once thrived in places like Ryngku and Lalpani in East Khasi Hills—have also ground to a halt. Local traders report that these markets, which serve as lifelines for people on both sides of the border, have remained closed due to increased security measures and waning demand.
'We used to earn a decent living selling and buying essentials across the border. But with the restrictions and the unrest in Bangladesh, everything has come to a standstill,' said Mebanlin Nongrum, a small trader from Mawsynram, adding, 'We are struggling to make ends meet.'
TRIPURA
Traders in Tripura have not been severely impacted as yet because a few important trade items including edible oil, fish, LPG and crushed stones were exempted from the restriction.
In a recent high-level meeting, director of Tripura's industries and commerce department Shailesh Kumar Yadav discussed the implementation of the restriction on important of goods including fruit drinks, processed food items, plastic and PVC furnished goods, wooden furniture through any land custom stations or integrated check-posts in Assam, Tripura, Meghalaya and Mizoram and LCS at Changrabandha and Fulbari in West Bengal.
In the meeting, the traders were told to follow restrictions imposed by the Union government on important of selective products from Bangladesh through land ports. Bidhan Saha, a local departmental store owner, said there is no shortage of Bangladeshi products, especially those produced by Pran Group, like packeted puffed rice, toast biscuits and other FMCG items, which are still in stock with local distributors.
Bangladesh's Pran Group runs a factory at the state-owned Bodhjungnahar industrial estate, where several other industrial units were provided land and other facilities as part of the state government's efforts to invite investments in Tripura.
Saha, however, said several of his customers have expressed discontent at the show of anti-Indian sentiments by a section of Bangladeshi citizens, questioning why they will buy Bangladeshi products when their incumbent administration has been making anti-Indian statements since last year.
Local fishermen at Battala and Lake Chowmuhani market of Agartala city have said there is no fish crisis yet since fish is exempted from the import restrictions along with a few other products like LPG, edible oil, stone chips.
A local construction material supplier, who asked not to be named, said there was no shortage of Bangladeshi construction materials like cement and stone chips in the local market but distributors have indicated that cement prices could soar because getting fresh supplies might become tough. 'We have said that any abrupt rise in prices will make it difficult for us to replenish our stocks with Bangladeshi products. There is no shortage of products yet,' the trader said.
Tripura imported goods worth Rs. 453 crores through Akhaura ICP last year. The northeastern state, mainly exports stone chips, lentils, dry chilly, ginger, cumin seeds etc., while imports different varieties of fish, LPG, cement, PVC door, PVC pipe, different types of drinks, wood, plastic materials, cotton waste etc.
The bilateral trade volume between Tripura and neighbouring Bangladesh declined from Rs. 1008.40 crores in 2021-22 to Rs. 715.98 crores in 2023-24, as per an industries and commerce department report released in the state assembly in March.
Of the total Rs. 1008.40 crores bilateral trade in 2021-22 financial year, Tripura imported goods valued at Rs. 767.00 crores while the state exported goods amounting at Rs. 241.40 crores, as per the report.
Overall trade was reduced to Rs. 758.09 crores in 2022-23 with Tripura imported goods amounting at Rs. 636.72 crores and exported Rs. 121.37 crores goods to Bangladesh. Later in 2023-24, the overall trade was again declined to Rs. 715.98 crores as the state imported goods of Rs. 703.67 crores and exported goods valued at Rs. 12.31 crores.
MIZORAM
Traditional cross-border trade in western Mizoram has been severely disrupted due to the restrictions, which have had a cascading impact on the region's economy, particularly affecting ginger exports.
Malsawmi, CEO of Aizawl-based Starfin, said that the suspension of exports to Bangladesh has delivered a significant blow to ginger traders in Mizoram. 'Bangladesh is our largest market for ginger, and their buyers are integral to the long-standing trade relationship we've shared. The current ban has not only made exports impossible but also caused ginger prices to collapse within the state,' she said.
Following the closure of the international boundary, the price of ginger in Mizoram has dropped to ₹17 per kilogram, far below the ₹28 per kilogram rate seen in Delhi, Silchar, and Siliguri markets, Malsawmi added. She also noted that ginger from Mizoram is in high demand in Bangladesh, where it is widely used in food, traditional medicine, and processing industries.
Hriatpuia, a local trader from the border town of Tlabung, echoed similar concerns. He told HT that the Border Security Force (BSF) and Border Guard Bangladesh (BGB) have both tightened control over cross-border movement, effectively halting traditional exchanges between villages.
'Ever since the tension between India and Pakistan escalated, the movement of villagers across the border has been heavily restricted. What was once a vibrant trade hub is now a zone of caution and silence,' Hriatpuia said. He also mentioned that BSF posts, previously manned by junior personnel, are now under the command of senior officers who are enforcing stricter protocols.
Mizoram shares a 318-kilometre-long border with Bangladesh, stretching across the Mamit, Lunglei, and Lawngtlai districts. For generations, local communities have engaged in informal trade across this boundary—ties that are now fraying under the weight of geopolitics.
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