Indo-Bangladesh Border Haats: A Path to Livelihood

 Keywords: India, Bangladesh, Northeast Region, Border Haats, Livelihood Opportunities

Date: 29 July 2023

The Northeast region of India, West Bengal and Bangladesh share a strong civilizational and cultural bond, which is reflected in the commonalities among the people of the region. This cultural link has cemented political and trade relations between India and Bangladesh, which, in recent times, is referred to as 'Sonali Aadhya'.

Indo-Bangla ‘Border Haats’ serve as meeting points for the locals on both sides to engage in trade and exchange views. These border haats are located on zero lines of the border shared by India and Bangladesh and facilitate direct trade of local products. 

The local residents living within a 5 km radius are permitted to sell locally produced goods at these duty-free border haats. Around 500 people weekly are allowed to participate from both sides and one can only purchase up to US$ 200 on a single haat day. These haats play an important role in generating livelihood opportunities and strengthening local economies. 

Presently, India and Bangladesh share four border haats. Two border haats are located in Meghalaya at Kalaichar (India)–Kurigram (Bangladesh) and Balat (India)–Dolora (Bangladesh); and other two are located in Tripura at Srinagar (India)–Chhagalnaiya (Bangladesh), and Kamalasagar (India)–Kasba (Bangladesh). 

Vegetables, fruits, spices, bamboo products, handicraft and handloom items, small household agricultural implements, processed foods, cosmetics, garments etc. are the usual commodities traded in these border haats (Table 1).

Table 1: India Bangladesh Border Haats in Northeastern Region

Source: Commerce and Industry Department, Government of Meghalaya; Department of Industries & Commerce, Government of Tripura. 

With the successive implementation of these border haats, both sides of the Government have planned to set up six more border haats, four in Meghalaya at Bholaganj, Nalikata, Shibbari, Ryngku and two in Tripura at Raghna and Kamalpur. Additionally, Kathalia (Nirbhaypur) in Tripura has been identified as a new site for border haat and the possibility for a new border haat at Khowai in Tripura is under process. 

Table 2: Upcoming Border Haats in NER

Over the past two years, the border haats were closed due to COVID-19 pandemic, causing immense loss of livelihood to the people alongside the border. In December 2022, the two border haats of Meghalaya resumed trading. Recently, the border haat at Srinagar near Sabroom in Tripura has reopened and Kamalasagar in Tripura is expected to revive in July ends this year. New border haat at Bholaganj (East Khasi Hills)-Bholaganj (Companiganj, Sylhet) in Meghalaya was inaugurated in May 2023 and will be opened twice a week. 

The establishment of border haats has been initiated to formalize informal cross-border trade, and successfully it has positively impacted the living standards of people residing near the border areas by creating job and income opportunities. 

According to World Bank, the estimated total trade of each border haats is around Rs. 4 crore per year and these border haats have the potential to increase total trade by increasing the number of days of operation, expanding the number of trading items, an increase in maximum trading amount and allowing a higher number of people and vendors for trading. However, these border haats need to improve infrastructure facilities to generate more trade opportunities. 

The governments of both sides have a strong interest in connecting the local people and creating economic opportunities for the locals. To strengthen the economic ties in the region, these border haats need to be converted into vibrant economic zones by constructing economic zone near border areas. For example, a Special Economic Zone (SEZ) at Sabroom near Srinagar border haat in Tripura once built will cater to more investment and trade opportunities in the border area. The upcoming SEZ will also strengthen the border haat of Srinagar by generating employment opportunities for the local population. 

On the other hand, the SEZ's proximity to the border haats offers a unique opportunity to foster business-to-business collaboration, creating a cross-border value chain that benefits businesses, consumers and economies on both sides of the border. To move one step further, border haats can be translated by upgrading them to trans-border economic zones. These zones could unlock greater economic potential, attract more businesses and promote cross-border cooperation and economic development in the region. 

India-Bangladesh border haats play a significant role in strengthening cultural ties and enhancing people-to-people connections between the two nations. Organizing fairs in the vicinity of India-Bangladesh border haats can be an effective way to deepen cultural cooperation, foster cross-border relations and strengthen people-to-people connections in the region. 

The marginalized communities living around the border have gained livelihood opportunities through these border haats, improving their living standards. The haats also provide income opportunities for the local women by selling local products at a favorable price. However, the contribution of border haats to the total trade between India and Bangladesh remains modest. 

Establishing a larger number of border haats around the border has the potential to generate more livelihood opportunities and improve the living standards of the marginal people living around the border areas as well as contribute to deeper regional economic integration and cultural exchanges between India and Bangladesh.

Sreya Mitra Pan is Research Fellow at the Asian Confluence

Disclaimer: The views expressed above and the information available are those of the author/s and can therefore in no way be taken to reflect the position of Asian Confluence