United News of Bangladesh

Export-import between Bangladesh and India through the Hili land port in Dinajpur district has been suspended on the occasion of Holi festival. Shahinur Islam, general secretary of Customs Agents Association (C&F) at the land port, said all activities at the land port remained suspended for Saturday due to a public holiday in India for celebrating the Holy festival. Transport strike halts Faridpur river port activities The trade will resume on Sunday. The loading and unloading of goods inside the land port in Bangladesh remained normal. Import activities through Benapole resume after 3 months The immigration services between the two countries remained out of the purview of the decision as the valid passport holders cross the border through the port from 9 am to 6:30 pm every day, said Ariful Islam, officer-in-charge of Hili immigration Check-post.  

Although Bangladesh’s export volume has grown by over 5 per cent in the last 35 years since 1989-90, the diversification of export products remains elusive, with exports still concentrated in just 8 to 9 major items. Why has Bangladesh been unable to achieve significant export diversification despite sustained efforts? According to Abu Mukhles Alamgir Hossain, Director (Policy and Planning) of the Export Promotion Bureau (EPB), several other promising sectors, such as leather and leather goods, jute and jute products, agricultural and processed products, handicrafts, pharmaceuticals, ICT and ICT-enabled services, and light engineering products, do not receive the same level of policy support and incentives as the readymade garments (RMG) sector. He emphasised that sector-specific policy papers are essential to assess the advantages and disadvantages of diversification while also analysing the strategies of competing nations. Barriers to Export Diversification A range of challenges hinder Bangladesh’s export diversification efforts. These include low technological advancement, inconsistent trade policies, environmental and compliance issues, skill shortages, limited innovation and research & development (R&D), inadequate logistics, intense global competition, and restricted access to finance for small and medium-sized enterprises (SMEs). Alamgir Hossain said that SMEs in Bangladesh struggle due to limited access to affordable credit. High interest rates and collateral requirements create significant barriers to business expansion. “Although SMEs are regarded as the lifeblood of the economy, Bangladesh must prioritise their development if serious about export diversification,” he said. Plastic products can boost export diversification: Commerce Adviser He added that export diversification cannot happen overnight. There is no shortcut to achieving it. Long-term strategies, sector-specific policies, business-friendly customs procedures, and efficient logistics are crucial for ensuring a diversified export sector. Current Export Scenario According to the EPB, Bangladesh exported goods worth Tk 2.94 lakh crore (US$28 billion) in the seven months from July to January, of which Tk 2.46 lakh crore (US$23.5 billion) came from garments alone. During this period in the current 2024-25 fiscal year, total export earnings grew by 11.68 per cent. The ready-made garment sector grew by 12 per cent, with knitwear expanding by 12 per cent and woven garments by 11.97 per cent compared to the same period last year. Bangladesh’s export earnings are still overwhelmingly dependent on the clothing sector. The EPB reports that in the 2023-24 fiscal year, knitwear accounted for 44.6 per cent of exports, woven garments 37.2 per cent, home textiles 3.3 per cent, footwear 2.3 per cent, jute products 1.9 per cent, and fish 1 per cent. Despite expert recommendations and government initiatives to promote export diversification, non-RMG sectors have shown little improvement, continuing their weak performance year after year. Bangladesh’s export products remain concentrated in just eight categories: knitwear, woven garments, agricultural products, leather and leather goods, jute and jute products, home textiles, frozen and live fish and engineering products. Challenges in Expanding Export Markets Bangladesh’s primary export destinations are the European Union, the United States, and the United Kingdom. While these markets are large, they primarily import clothing items from Bangladesh due to the country's expertise in the sector and its competitive pricing, industry insiders say. Reduced regulatory burdens, documentation processes to foster export diversification: Discussants Dr Mohammad Abdur Razzaque, Chairman of the Research and Policy Integration for Development (RAPID) think tank, stressed that the time for serious efforts towards export diversification is now. “Although achieving major export diversification is a long-term process and Bangladesh has been trying for years, there is no alternative but to achieve diversification to sustain the export sector,” he stated. Dr Razzaque, who has also served as a trade expert in the UK and EU, warned that global challenges could lead to declining demand for clothing products in the USA, UK, and EU, as competing countries ramp up their export capacities. Furthermore, he pointed out that US sanctions on China may indirectly affect Bangladesh’s garment sector, given that Bangladesh imports a significant portion of raw materials for garments from China. The evolving global trade landscape poses additional risks. Key Issues Preventing Export Diversification Responding to why Bangladesh has failed to diversify its exports, Dr Razzaque said, “We have not taken the issue of product diversification seriously enough. Compliance is another major concern.” He noted that the potential of the leather sector remains largely untapped due to compliance issues. “Bangladesh had ample time to address compliance challenges in the leather industry, but mismanagement and corruption have kept the sector lagging behind,” he added. Dr Razzaque emphasised the need for improving workforce skills to enhance competitiveness in the global market. He argued that producing diversified and high-end products would provide Bangladesh with a crucial advantage in exports. While Bangladesh’s export sector has seen remarkable growth, its overwhelming reliance on the RMG industry makes it vulnerable to shifts in global demand and competition. Experts suggest BD’s export diversification to tackle upcoming challenges     Addressing barriers such as inadequate policy support for non-RMG sectors, compliance shortcomings, skill gaps, and financial constraints on SMEs is essential for meaningful diversification. Without significant reforms and targeted investment in emerging export industries, Bangladesh risks stagnation in its export growth and long-term economic vulnerability.

Bangladesh’s export sector is showing signs of steady recovery, overcoming disruptions caused by the political turmoil in July and August that led to the ouster  of the Awami League government. According to data from the National Board of Revenue (NBR), export earnings in October surged by approximately 19 per cent compared to the same period last year. Goods worth $15.88 billion were exported in the first four months of the current 2024-25 fiscal year, marking an increase of about 11 per cent compared to the same period in the previous fiscal year. In October alone, Bangladesh exported goods valued at $4.13 billion—$650 million or 18.68 per cent more than the corresponding month last year. During July, August and September, the country’s export earnings stood at $3.82 billion, $4.07 billion and $3.86 billion respectively. Bangladesh Bank data indicates that export earnings for the first three months of the current fiscal year amounted to $11.66 billion, a 7.62 per cent increase from last year’s $10.83 billion. Export earnings during the July-August period were $7.85 billion. Knitwear exports during the July-September period amounted to $5.35 billion, an 8.25 per cent increase from the $4.94 billion recorded in the same period last year. Woven garment exports rose by 7.33 per cent to $4.16 billion compared to $3.88 billion in the previous year. NBR plans online tax reforms to simplify process for taxpayers Exporters attributed the recent rebound to delayed shipments of orders that had been stuck due to labour unrest, the quota reform movement, and student uprisings during July-September. Many of these pending orders were shipped last month, several exporters told UNB.  They added that the seasonal demand for winter and Christmas-related products also contributed to the rise in exports, which increased in both value and quantity. A senior official of the Newage Group confirmed that their factories are operating at full capacity. “We are booked until June 2025, and hopefully other factories are performing similarly,” he said, emphasising that securing work orders depends on reputation, quality, and compliance standards. An official document suggests that Bangladesh may witness further growth in export volumes, driven by shifts in global trade dynamics. The World Trade Organization (WTO) forecasts that despite a contraction in global trade in 2023, merchandise trade volumes are expected to grow by 2.6 per cent in 2024 and 3.3 per cent in 2025. NBR to gradually rationalise 60 tariff lines by 2026 The recovery is expected as inflation subsides, encouraging consumers to purchase more goods. Emerging Market and Developing Economies (EMDEs) are projected to experience faster export growth than advanced economies.  The Eurozone, which suffered a significant contraction in 2023, is predicted to recover gradually with export growth of approximately 3 per cent from 2025 onwards. Bangladesh’s export growth, which slowed from 8.79 per cent in 2023 to an estimated 3.93 per cent in 2024, is expected to rebound, reaching 8.83 per cent by 2027. China’s export growth is forecast to remain moderate, ranging between 1.8 per cent in 2025 and 2.85 per cent in 2026, while India’s exports are projected to recover strongly from a contraction of -2.76 per cent in 2023 to approximately 4 per cent in 2025. In contrast, the UK is expected to see subdued export growth, with contractions in 2023 and 2024, followed by modest growth rates below 2 per cent until 2027.  Meanwhile, the US is projected to maintain a stable export growth rate of around 3 per cent throughout 2024-27. As exports recover, Bangladesh’s imports are also expected to rebound in the medium term. According to the IMF, Bangladesh’s import volume growth is projected to recover sharply from a contraction in 2023 to moderate growth of 4.1 per cent in 2024 and robust growth of approximately 18 per cent in 2025. 10.50 lakh complete registration for online tax payment so far: NBR However, country-specific dynamics reveal varied trajectories. For instance, China’s import growth is expected to decline to 3.4 per cent in 2024 and 0.9 per cent in 2025.  Meanwhile, India’s import growth is forecast to accelerate from 4.8 per cent in 2024 to 6.6 per cent in 2025 and beyond. Import growth in advanced economies such as the UK and the US is expected to remain low, with the UK even projected to experience negative growth in 2025.

Amid the spiraling prices of eggs at local markets, another shipment of 2.31 lakh eggs entered the country from India through Benapole land on Saturday night. Dhaka based importer ‘Hydro Land Solution’ brought it the consignment costing Tk 5.70 per egg. With a Tk 1.83 import duty at the land port, the buying price of each egg stands at over Tk 7.5.  The government has permitted import of 4.5 crore eggs in phases. By next month (November), another 90 lakh chicken eggs will arrive from India. 532 mts of hilsa exported to India in 11 days against approval for 2420 mts Shah Alam, a representative of the importer Hydro Land Solution, said the Ministry of Commerce permitted it to import of 50 lakh eggs in two months, setting a deadline by September 10. But, the importers could import some three lakh eggs in two shipments, he said, blaming the political instability for being barred from importing. Upon appeals, the ministry extended the deadline by two more months till November, the representative said. Masudur Rahman, revenue officer of the land port, confirmed that per egg costs over Tk 7.50 with tax. Bangladesh's National Board of Revenue (NBR) Thursday slashed import duty on eggs from 25 percent to 5 percent to help rein in prices. Export earnings increase by 6.78 percent in September:EPB The egg import duty cut would reduce import costs of eggs by 13.8 taka per dozen, making the country's cheapest source of protein affordable for the commoners, the NBR said in a statement. Recently low and middle income people are being forced to cut short consumption of eggs as prices soared to 200 taka a dozen over the last week in Dhaka and other parts of the country. According to the Ministry of Commerce estimates Bangladesh has a daily demand for 4 crore eggs.

Bangladesh has exported 532 metric tonnes of hilsa to India in 11 days till Saturday night on the occasion of Durga Puja against this year’s export approval for 2420 mts. The government had permitted 49 companies to export 2,420 mts of hilsa during this period, but the actual quantity export between September 26 and October 12 was significantly lower. A total of 3.6 mts of hilsa was exported to India through Benapole land port until 10 pm on Saturday, the last day of this year’s export as the fishing window closed due to the government restriction ahead of the start of the breeding season. A 22-day ban on hilsa netting, hoarding and transportation was imposed from Saturday midnight . A total of 168 trucks carried the hilsa from Bangladesh’s Benapole port to India’s Petrapole port during the 11-day period. Hilsha selling like hot cake in wholesale market Each kilogram of hilsa was sold at $10, equivalent to approximately Tk 1,180. In total, the exports generated $532,000, or around Tk 6.28 crore. Despite the lower than expected exports, domestic prices of hilsa have continued to rise. On Saturday, hilsa weighing less than a kilogram was being sold at Tk 1,300 per kg in the Benapole market, while larger fish were selling between Tk 1,800 and Tk 2,000 per kg. In contrast, the same size hilsa exported to India is being sold at a price range of Tk 600 to Tk 800 per kg, raising concerns about price discrepancies between domestic and export markets. Aswadul Islam, Inspector of Fisheries Inspection and Quality Control at the Benapole Land Port, acknowledged the gap between export and domestic prices. He said the export rules had been set a few years ago and suggested that a price adjustment might be considered to address the disparity. According to the Department of Fisheries, Bangladesh exported 665 mts of hilsa in the 2023-24 fiscal year, significantly below the permitted 2,420 mts. Previous years also saw missed targets, with 477 mts exported in FY 2019-20, 1,880 mts in FY 2020-21, 1,211 mts in FY 2021-22, and 1,376 mts in FY 2022-23. 

After eight days of suspension owing to Durga puja, trade resumed via the Sonamasjid land port of Chapainawabganj on Saturday. Abdur Rashid, general secretary of Sonamasjid Land Port C&F Agents’ Association, said that trade via the port was suspended from September 30 to October 7 following Durga Puja vacation and weekly government holidays.   “Export and import of goods via the port has restarted. Vehicles coming from India with goods have started entering the port since this morning,” said Rashid. Read: Trade via Sonamasjid land port to remain suspended for 8 days

Trade between Bangladesh and India via the Benapole land port remained suspended on Saturday, with the neighbouring country celebrating Vishwakarma puja. However, movement of people via the land port remained as usual, officials said. Kartik Chakrabarty, general secretary of the Petrapole C&F Agent Staff Welfare Association, said that trade between Bangladesh and India through Benapole-Petrapole land ports will resume on Sunday morning. Read: Trade through Benapole land port suspended for Janmasthami Abdul Jalil, deputy director (traffic) at the Benapole port, said that though transportation of goods between the two countries was suspended, loading and unloading of goods inside the port remained normal.   “We’ve kept our cargo department and checkposts open so that Indian trucks carrying Bangladeshi goods can return," said Abdur Rashid Mia, joint commissioner of Benapole Customs House.

Trade  through  Bhomra land port in Satkhira resumed on Wednesday after five day of Eid holidays. Import and export between India and Bangladesh remained suspended from July 8-12 through Bhomra land port on the occasion of Eid. But movement of people through the border was open. Read: Trade through Bhomra port resumes as lockdown lifted Bhomra land port Customs Clearing & Forwarding (C & F) Agents Association general secretary SM Maksud Khan said the decision to suspend import and export between the two neighbouring countries was made after consultation with India's Guzadanga C & F Agents Cargo Association. Bhomra land port assistant customs commissioner Amir Mamun said around 300-350 goods laden trucks entered the port through India's Guzadanga land port.   The government earns more than Tk 2 crore daily from this land port, said the customs official.   

Bangladesh garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan has said the volume of Bangladesh’s export-import is increasing, creating demand for more containers to make timely shipment of goods. As a deep sea port is yet to get ready in Bangladesh, he said, traders have to depend on the sea ports of Colombo and Singapore for international shipment. In such circumstances, the BGMEA chief said, Indian sea ports could be a feasible alternative for Bangladesh to handle increasing volume of exports and imports. Also read: BGMEA urges Aldi to source more high-end apparel from Bangladesh The issues came up when Yousuf Shahriar, President and Country Head of Adani Group Bangladesh, met the BGMEA President at BGMEA’s Gulshan office on Wednesday, BGMEA said in a media release on Thursday. BGMEA Vice President Miran Ali, Director Abdullah Hil Rakib, Capt Mohit Chaturvedi, Head – India Container Sales Business Development, Adani Ports and SEZ Ltd were also present on the occasion. Also read: BGMEA claiming 100 percent salaries, bonuses paid to RMG workforce They had discussions on various trade issues, especially the current global shipping situation and its outlook, scope of using Indian sea ports for international shipment of Bangladeshi export-import cargoes. Faruque Hassan requested the Adani Group to extend necessary shipping and other logistic services to Bangladeshi trades so that they can export and import cargoes through using Indian ports.

Export-import activities between Bangladesh and India through Benapole land port remained suspended since Monday morning due to an indefinite strike called by Petrapole port workers of India. Karthik Chandra Chakraborty, general secretary of Indian Petrapole C&F Agent Staff Welfare Association, said the strike was called protesting various harassment by theb LP manager at Petrapole port. "We are already in business trouble due to Covid-19 outbreak. In addition, the new LP manager is harassing traders by enforcing  new rules at entry  points,"he added. Read: Gas supply suspended in B’Baria as pipeline gets damaged He also said that no transport staff is allowed to enter ICP and port without a unique card. However, the loading and unloading process at our port is going on at a normal pace, said Mamun Tarafdar, deputy director of Benapole port.