When India announced new restrictions on Bangladeshi imports via land ports in May 2025, the directive was met with mixed reactions. For many in Northeast, especially traders and retailers in border states such as Tripura and Meghalaya, the decision sparked concern over potential disruption in the supply of affordable, familiar consumer products. This move by India, however, was not unilateral; it came as a reciprocal measure after Bangladesh had imposed its own set of restrictions and transit fees on Indian goods, including crucial items like cotton yarn and rice, impacting India’s exports and access to its own northeastern states.
Just two months later, a new story is beginning to emerge—one of opportunity, revival, and a potentially seismic shift in regional industry dynamics. As Bangladeshi products lose their competitive edge due to higher logistics costs, local manufacturers appear to be filling the void.
A Sudden Shift in Trade Dynamics, Rooted in Reciprocity
The new Indian regulations, introduced on 17th May, 2025, restrict the import of processed food products, carbonated and fruit-flavoured drinks, readymade garments, plastic goods, and wooden furniture from Bangladesh through land customs stations (LCSs) and integrated check posts (ICPs) located in Northeast and parts of West Bengal. Instead, these products must now enter through sea ports such as Kolkata or Nhava Sheva—routes that entail higher transportation costs and longer delivery timelines.
This policy shift was a direct response to a series of measures implemented by Bangladesh, which included banning Indian cotton yarn imports through five major land ports, curbing rice, paper, tobacco, fish, and powdered milk imports, and imposing a new transit fee of ₹1.8 Taka per tonne per kilometre on Indian cargo. Indian officials emphasized the need for reciprocity, stating that while India had granted Bangladesh broad access to its ports and transit routes, Bangladesh had been selectively restricting market access and transit for India’s northeastern states.
For decades, companies like PRAN–RFL Group, Bombay Sweets, and Sajeeb Group had enjoyed strong penetration in the Northeast, especially Tripura, thanks to cultural familiarity and logistical proximity. From Mr Noodles to Potata chips and Shezan mango juice, Bangladeshi FMCG brands occupied significant shelf space.
Local supply of these goods was often undercut by the lower prices of Bangladeshi imports.
Local Brands Seize the Moment
With Bangladeshi products losing cost competitiveness, homegrown players have moved quickly to fill the supply gap. Several companies based in the region have large distribution networks, and have already reported a spike in snack and biscuit sales in Tripura and lower Assam in just the past six weeks.
Sales of their flagship brands have increased significantly with strong uptake by distributors in Agartala and Karimganj. Retailers are requesting double the usual stock.
Similarly, couple of local companies have now resumed 24-hour production shifts to meet rising demand, particularly in the biscuit segment that was previously dominated by Bangladeshi varieties.
Deepa Das, a small business owner from Agartala notes:”For a long time, the imported plastic goods were just so affordable. Now, I’m noticing more variety in the local plasticware shops, and some of it feels sturdier. It’s a slight price difference, but if it lasts longer and supports jobs here, I’m willing to make that switch.”
The FPO Revolution in Rural North East
Beyond large players, the import void is also benefiting Farmer Producer Organisations (FPOs) supported by the Mission Organic Value Chain Development for North Eastern Region (MOVCD-NER). Many of these cooperatives had struggled to market traditional value-added products—like bamboo shoot pickles, jackfruit chips, and black rice snacks—due to shelf competition from cheaper Bangladeshi alternatives.
Now, FPOs in Meghalaya’s Ri-Bhoi and Assam’s Darrang districts report improved local demand. There are heartning reports thst supermarkets in Shillong have started sourcing organic juices and pickles directly from local cooperatives as imported options have become expensive.
Consumers Respond with Curiosity and Caution
While retailers are shifting inventory, consumers are cautiously adjusting their preferences.
“Honestly, at first, I was a bit annoyed. My kids loved those Bangladeshi juice boxes, and they were so cheap. Now, the local brands are popping up everywhere. The mango juice might not be exactly the same, but it’s pretty good, and I like the idea of supporting something made close by.” says Priya Sarmah, a mother and momemaker from Guwahati.
There is an acknowledgement that while some familiar tastes from imported products are missed, local alternatives are proving to be good, though sometimes in need of better packaging.
Packaging and branding remain critical hurdles for local producers. Many FPOs and SMEs continue to use basic labelling, which limits shelf appeal and shelf life. Still, the trend is clear: the demand void is creating space for regional identity.
Meanwhile Sanjukta Devi a retired teacher from Silchar adds: “I used to get my favorite dry cakes from Bangladesh. When they became scarce, I tried a local bakery’s version. It’s different, but equally delicious, maybe even fresher. It made me realize how much good stuff is made right here that we might have overlooked before.”
A Policy for Protection or Partnership?
India has framed its policy as a move to ensure fairness and reciprocity in trade. This is seen as an effort to recalibrate trade to ensure local businesses get breathing room and that market access is truly reciprocal.
Bangladesh, on the other hand, has expressed concern over the restrictions, particularly given their impact on key export sectors like readymade garments. Several of its top FMCG exporters have now started exploring sea routes, though these are costlier and less efficient.
Trade analysts observe that this restriction has effectively neutralised Bangladesh’s proximity advantage. It is considered a classic non-tariff barrier, and unless logistics are re-optimised, many Bangladeshi brands may lose relevance in the Northeast region.
Conclusion: A Turning Point for Local Industry?
Two months is a short time to declare a full-fledged industrial revival. However, early signs point to resurgent interest in local FMCG manufacturing, supported by policy, supply chain realignment, and shifting consumer attitudes. This reciprocal trade adjustment, triggered by Bangladesh’s earlier restrictions, may ultimately serve as a significant catalyst for Northeast India’s food processing renaissance, fostering self-reliance and boosting regional economic growth. If current sales trends continue, and FPOs successfully scale and brand their offerings, the 2025 import restrictions might be remembered not as a closure, but as a strategic rebalancing act that opened new doors for local industries.
