Exports to India via Chattogram port surge as land routes face curbs

By Admin

25 Sep, 2025

Bangladesh’s trade with India is undergoing a dramatic shift, as tightening restrictions on land routes push exporters towards sea transport. Over the past several months, shipments through Chattogram Port have soared, reshaping trade dynamics between the two neighbors.

Land route restrictions reshape trade flows

Since early 2025, India has imposed three successive rounds of curbs on imports from Bangladesh, targeting sectors such as apparel, processed foods, plastics, yarn, furniture, and most recently, raw jute and jute products. These measures have sharply reduced cargo movement through land ports, particularly Benapole the traditional gateway for Indo-Bangla trade.

While land borders remain constrained, sea channels remain open. However, exporters face longer transit times and higher freight costs, as goods shipped from Chattogram often detour through Colombo before reaching Indian destinations like Kolkata or Mumbai’s Nhava Sheva. Despite these challenges, Indian buyers continue sourcing from Bangladesh, largely due to duty-free benefits and the absence of competitive alternatives.

Chattogram emerges as the lifeline

Data from the National Board of Revenue (NBR) and Chattogram Customs underscores this sea shift. In the first eight months of 2025, exports to India via Chattogram surged 139 percent year-on-year rising to $338.2 million from $141.4 million in the same period of 2024. Export volumes more than doubled as well, climbing to 116,000 tonnes from 60,525 tonnes.

Overall, Bangladesh exported 760,000 tonnes of goods worth $1.22 billion to India between January and August this year. Although this marks a modest 3.3 percent increase in value, total export volume fell 10.9 percent compared to 2024. The numbers reflect how sea-based trade growth is compensating for shrinking land-based trade.

Decline at Benapole and Mongla

Exports through other major gateways tell a different story. Combined shipments via Chattogram, Mongla, and Benapole totaled $824 million during the January–August period, up from $770 million a year earlier. But excluding Chattogram, all other routes registered sharp declines.

Benapole Port, once the busiest hub for India-bound exports, witnessed a steep drop falling from 281,000 tonnes worth $623.8 million last year to 201,000 tonnes worth $486 million in 2025, a 22 percent fall in value and 29 percent in volume. Mongla Port fared worse, with exports plummeting from $5.3 million in 2024 to just $91,000 this year.

Capacity strains at Chattogram

Already handling 84 percent of Bangladesh’s international trade, Chattogram Port is now facing added pressure. Its storage capacity stands at 53,500 TEUs, but smooth operations require volumes to remain under 40,000. Since March 2025, container levels have consistently exceeded this threshold, peaking at a record 49,131 TEUs in mid-August. The surge has raised concerns of congestion and possible gridlocks if volumes continue to rise.

The road ahead

The redirection of exports highlights both vulnerabilities and opportunities in Bangladesh’s trade infrastructure. While Chattogram Port has proven resilient in absorbing redirected cargo, its growing congestion underscores the urgent need for capacity expansion, investment in efficiency, and alternative maritime gateways.

As India and Bangladesh navigate new trade realities, the reliance on sea transport may deepen further. For now, Chattogram stands as a crucial bridge keeping Bangladesh’s exports to India afloat despite restrictions on land-based trade.