Akhaura Land Port trade drops, traders want import of popular goods

Revenue collection at the Akhaura land port in Brahmanbaria dropped in recent times as trade declined due to two main reasons — goods allowed to be imported through this port are limited and not sought-after and Indian traders reduced imports from Bangladesh.

Currently, more than 50 products can be imported through Akhaura land port, including cattle, fish fry, chemical fertiliser, broken glass, fly ash, marble chips, agarbatti and cumin. 

However, traders said most of these products have low demand in the market and they cannot make much profit with these import items.

They also said there is little scope to boost exports to India but the Akhaura land port can be revitalised If the government allows more sought-after products to be imported through this port, which will increase the port's revenue.

Port data shows that Bangladeshi traders imported a few items such as stone, onion, wheat and ginger from India in recent years. 

In the fiscal year 2021-22, Akahura port collected revenue of Tk7.61 crore against Tk288.41 crore worth of imports. In FY23, revenue collection plunged to Tk55.78 lakh only against Tk65.93 crore worth of imports. In FY24 (July-September), revenue of Tk46.98 lakh was collected against imports worth Tk75.62 lakh, data shows.

Traders also said the Akhaura port lacks the necessary tools and facilities to test and release incoming goods in a short period of time. This delay results in additional charges for importers, raising the import cost even higher.

Akhaura Land Port Importers and Exporters Association General Secretary Shafiqul Islam, told The Business Standard, "To boost import trade, it is necessary to provide the opportunity to import all types of goods (except for prohibited goods) along with the development of the port's infrastructure and communication system.

"Through this, businesses will be able to make a profit by importing the products that are in demand in the market. This will also generate revenue for the government."

In May this year, the chairman of the National Board of Revenue inspected the commercial activities of Akhaura land port, while businessmen submitted a written application for approval to import some of their desired products. However,  no approval has been given by authorities yet.

Akhaura Land Customs Station Assistant Revenue Officer Md Kamrul Parvez said, "We received no clear directives on the application submitted by traders. Meanwhile, revenue collection is decreasing with declining imports."

"We are trying everything to increase the port's revenue. Higher authorities have been informed about the issue of shortage of necessary equipment for testing imported goods," Kamrul added.

Exports to India halved

Port data also shows that exports to India via this port decreased by nearly 50% over the last two fiscal years. 

In FY22, goods worth Tk680.12 crore were exported to India, and goods worth around Tk376.23 crore were exported in FY23. In FY24 (July-September), goods worth Tk60.37 crore were exported to India.

Bangladeshi goods go to northeastern Indian states via Agartala, Tripura's capital. But as the road and rail connectivity between Tripura and other Indian states improved over the past few years, Indian traders are now importing less from Bangladesh and sourcing goods from their own states. 

Currently, an average of $100,000 worth of frozen fish, rods, cement, plastic, and cotton, among other products, are being exported through the Akhaura landport every day, which is almost half of what was in FY22.

Govt measures to revive Akhaura port 

Trade with India began through Akhaura Land Customs Station in 1994. Later, considering its commercial importance, Akhaura Land Port was established as a full-fledged port in 2008. The port's export items were delivered to other northeastern Indian states via Agartala, Tripura's capital.

Amid low revenue, the government is taking several measures to boost trade through this port.

To make transportation of goods more manageable and affordable, the current two-lane 51-km-long highway from Ashuganj River Port in Brahmanbaria to Akhaura Land Port is being upgraded to a four-lane. More than 50% of the work on the project, costing Tk5,791 crore, has been completed.

The authorities concerned believe that international trade will increase further once the highway becomes operational. In addition, another project involving Tk80 crore is being taken up for the infrastructure development of the land port.

Akhaura Land Port Assistant Director Md Atikul Islam said, "The work of the infrastructural development project will start soon. Under that project, a new warehouse, two weight scales, a transhipment yard, and an office building will be constructed."