New Delhi/Dhaka, March 21 (NationPress) In light of ongoing discussions between Bangladesh and India regarding trade and connectivity, a recent report highlights that the establishment of emergency supply security—with well-defined, structured, and legally binding terms—remains unformalized despite its evident importance.

The 'Eurasia Times' reported that the spike in global container freight rates from 2020 to 2022, combined with port congestion that delayed transit times, compelled Bangladesh to confront a challenging reality: its trade policies had not formally recognized the inadequacy of supply chains designed for normal circumstances in the face of disruptions.

“The shortage or delays of pharmaceutical raw materials and industrial inputs became apparent. Critical industrial supplies were stuck at distant ports. The prices of food commodities surged as disrupted maritime routes inflated costs across all import categories. The neighboring country capable of reaching Bangladesh most swiftly, via road in a matter of days, was India. This reality has yet to be integrated into policy,” the report noted.

The analysis pointed out that prior to the pandemic, Bangladesh sourced active pharmaceutical ingredients worth hundreds of millions of dollars each year from both China and India.

As Chinese factories shut down and global logistics faced interruptions, India's role in supplying these materials became increasingly vital.

“Despite facing their own domestic challenges, Indian manufacturers quickly resumed cross-border land deliveries once restrictions were lifted. A truck journeying through Benapole or Petrapole can transport pharmaceutical supplies from Indian production centers to Dhaka in less than two days in ideal conditions. No shipping route from Shanghai or Rotterdam can match that efficiency,” it added.

“The dependency on pharmaceuticals is structural. Bangladesh's robust domestic drug industry primarily produces finished medicines for local consumption and some for export. The active pharmaceutical ingredients essential for these medicines, which halt production without them, are imported. India and China are the primary global suppliers of these compounds. Given China's distance and its demonstrated supply vulnerabilities during crises, India serves as the critical alternative. There is no comparable option that operates on the same timeline,” it mentioned.

The report underscored Bangladesh's energy needs, asserting that India, with its operational domestic refineries and an overland supply route via the Bangladesh–India Friendship Pipeline, possesses the capability to act as an emergency diesel supplier.

“While it has provided this support in specific instances, the arrangement has yet to be established as a formal supply agreement,” it concluded.