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India Bangladesh transit routes: How much walk the talk is happening?

Only allowing transit will not work; infrastructure facilities and customs process must be made easier to transport the consignment of goods smoothly, but that is not happening.
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India and Bangladesh have signed an agreement, allowing Indian traders to use Chittagong and Mongla ports for transportation of goods to north-eastern states. The Bangladesh government has notified the four routes for transhipment of goods to Tripura and other north-eastern states. But still Indian traders are not showing much interest, it is reported. Over the past three months there has not been any movement of goods on the route.

Professor Mustafizur Rahman, Distinguished Fellow, Centre for Policy Dialogue says, only allowing transit will not work; infrastructure facilities and customs process must be made easier to transport the consignment of goods smoothly, but that is not happening.

Indian traders will consider costs and time factors, Customs process and infrastructure facilities while transporting goods through Bangladesh. But, Indian traders enjoy special incentives on transporting goods through chicken’s neck route, so, if the cost is lower on that route they will not show interest to carry goods through Bangladesh, Prof. Rahman added.

At Bangladesh seaports, a document processing fee of Tk 30 will be charged per consignment for transit or transhipment, a transhipment fee of Tk 20 a tonne, a security charge of Tk 85 per container, an administrative charge of Tk 100 a tonne and a container scanning charge of Tk 258 will be realised. Besides, tolls on the road and electric and seal fee will also be imposed. However, all fees are 15 per cent VAT (value added tax) exclusive.

Similarly, several new inland waterways have been identified to boost trade between Bangladesh and India. One such route consists of waterways in the Gomti river from Comilla’ Daudkandi to Sonaimura of Tripura’s Sipaizala district and then a roadway to Agartala. A consignment of cement was transported on a test run via this transit in August 2020, but traders showed no further interest to transport goods on this route due to a lack of navigation.

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