New Delhi, March 21: Amid global supply chain disruptions, India’s significance to Bangladesh has surged considerably. Although extensive discussions have taken place regarding trade and connectivity between the two nations, no formal and binding agreement on emergency supply security has been established yet.
According to a report by Eurasia Times, between 2020 and 2022, a sharp increase in container freight rates and growing backlogs at ports led Bangladesh to realize that its existing supply chains were not prepared for crises.
The report indicates that during this period, there was a shortage or delay in the supply of raw materials for medicines and industrial inputs. Many essential goods were stranded at distant ports, while food prices also rose. In this scenario, the fastest supplier was India, which shares a border with Bangladesh.
Before the pandemic, Bangladesh imported significant quantities of active pharmaceutical ingredients (APIs) from China and India each year. However, as factories in China shut down and global logistics were disrupted, India’s role became increasingly vital.
The report highlights that Indian companies quickly restored cross-border supplies after restrictions were lifted, despite facing domestic challenges. Raw materials for medicines can reach Dhaka within two days via truck through Benapole or Petrapole, while shipments from Shanghai or Rotterdam take much longer.
Additionally, the report states that Bangladesh’s pharmaceutical industry, considered robust in South Asia, primarily produces finished medicines. However, it relies on imports of essential raw chemicals (APIs), with India and China being the main suppliers. During disruptions in supplies from China, India emerged as a reliable alternative.
Regarding energy needs, the report mentions that India has the capacity to supply diesel in emergencies through its refinery network and the Bangladesh-India Friendship Pipeline. Although this has been done on some occasions, it has not yet been formalized into an agreement.
The report suggests that both countries should establish a clear, structured, and legally binding arrangement for emergency supply security to prevent disruptions during any future global crises.
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My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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