India stops import of Bangladeshi garments, processed foods via land ports

India has restricted the import of at least seven categories of Bangladeshi goods, including readymade garments (RMG), fruits and processed foods, through its land ports – just a month after Bangladesh banned yarn imports via the same route.

The ban, outlined in a 17 May notification from India's Directorate General of Foreign Trade under the Ministry of Commerce, stipulates that garments from Bangladesh may now only enter India through Kolkata and Nhava Sheva, Mumbai, seaports.

"All readymade garment imports from Bangladesh shall not be allowed from any land port, however, it is only through Nhava Sheva and Kolkata seaports," reads the circular.

The restrictions will not apply to Bangladeshi goods transiting through India but destined for Nepal and Bhutan, it added.

Other items included in the restriction are fruit, fruit-flavoured and carbonated beverages, processed food products, cotton and cotton yarn waste, finished plastic and PVC goods, and wooden furniture. 

Imports of these goods have also been barred from entering India via any land customs station or Integrated Check Post (ICP) in Assam, Meghalaya, Tripura and Mizoram.

Bangladesh's ban on yarn imports through land ports came into effect on 15 April, following lobbying by the Bangladesh Textile Mills Association, alleging that yarn importers were abusing land-port access to under-declared shipments, harming domestic textile mills.

While local spinners welcomed the move, apparel manufacturers opposed it, saying it would raise production costs.

According to National Board of Revenue officials, about three-fourths of yarn imports from India already come via seaports.

Bangladesh imported around $9 billion worth of goods from India in FY24, according to Bangladesh Bank data. In contrast, exports to India during the same period stood at $1.56 billion, as per the Export Promotion Bureau.