Bangladeshi businesses are facing higher costs in trading with India as retaliatory non-tariff restrictions imposed by both countries disrupt shipments through land ports, forcing goods to be rerouted by sea.

Annual trade between the neighbours exceeds $15 billion, with India serving as Bangladesh’s second-largest source of commodities and raw materials after China. Business leaders say transport costs have climbed by as much as 20 percent since the restrictions were introduced earlier this year.

The tensions began in April when India suspended transshipment facilities for Bangladeshi exports to third countries. Dhaka responded by halting yarn imports through 11 land ports.

New Delhi then tightened rules on Bangladeshi exports, including garments, processed foods, plastics, furniture, and, more recently, raw jute and jute products.

As a result, many businesses are now compelled to ship through Chattogram port, a route that is slower and more expensive. Humayun Rashid, chairman of Energypac Fashions Ltd, said his company’s annual exports of $7 million in garments to India have become costlier. “Rerouting through Chattogram has pushed up transport costs by up to 20 percent,” he told The Daily Star, adding that Indian importers are increasingly concerned about longer lead times.

Despite the difficulties, Rashid noted that his company’s trade volume with India has so far remained stable.

The commerce ministry said it has requested talks with New Delhi on the trade barriers but has yet to receive a response.