Bangladesh’s imports from India stand at about $2 billion, while its exports to India are just over $250 million. With India recently allowing Dhaka to export eight million pieces of textile over and above the commitments under the South Asian Free Trade Agreement, another $75 million worth exports to India can be expected.

At the same time, India is quite cut up over Bangladesh’s decision to ban the export of hilsa since July, with states like West Bengal and Tripura, whose citizens have a big weakness for this bony fish variety being inconsolable, especially in the current festive season. India had imported about 4,500 tonnes of the fish in 2005-06 and about 3,500 tonnes in 2006-07.

“We have been taking it up with Dhaka and the Indian High Commission is pursuing it. But so far, there’s no breakthrough,” Ramesh said. The ban, imposed by Dhaka in view of rising prices for the fish in the domestic market, is to continue till December.

When asked if India is actively considering using some tough measures on the trade front, Ramesh replied in the affirmative, but added: “We may have a blow hot, blow cold relationship with them, but geographically, historically and culturally, they are bound to us and we should be sensitive to a small country’s needs. There are other considerations too. China has overtaken India as their largest inputs supplier last year.”

Along with trade tactics, tightening security on the highly porous borders with Bangladesh would also be on the agenda at the chief ministers’ meeting, which would also be attended by Union Home Minister Shivraj Patil and Finance Minister P Chidambaram.

... contd.