Bangladeshi ‘India out’ campaign hits Ramadan sales

DHAKA — Shopper Sinthia Amin rejected an Indian brand of biryani masala promoted to her by an employee in an upscale supermarket recently. Like many Bangladeshis fed up with what they perceive as New Delhi’s interference in local politics, she is boycotting Indian products.

Amin is one of many Bangladeshis inspired by an “India Out” campaign launched by an activist on social media in January after Prime Minister Sheikh Hasina was returned to power for a fourth consecutive term in a one-sided election.

Critics accuse India of meddling in Bangladeshi politics to keep Hasina in place, as the online campaign gained greater traction recently with the support of the main opposition Bangladesh Nationalist Party (BNP), which had boycotted the election.

“I want India to stop interfering in our politics,” Amin said.

There are no figures yet to show the impact of the consumer boycott, but shopkeepers reported a fall in sales during the holy month of Ramadan, a time of increased consumer spending leading up to Eid-al-Fitr — the most important festival in the Muslim-majority nation of nearly 180 million people — which was celebrated on Thursday.

Indian saris, usually a bestseller during the shopping season in Bangladesh, have seen a slump in sales, with retailers saying they are struggling to move stock, particularly luxury pieces.

“This [Eid] is a peak time for us, with Indian saris worth thousands of dollars flying off the shelves,” said Jahangir Alam, owner of a store in the Mirpur area known for one of the biggest sari markets in Dhaka.

“This year, however, most of our stock remains unsold,” he told Nikkei Asia. “It’s very unusual. It seems there’s a serious boycott of Indian products happening, and I am rethinking stocking Indian saris anymore.”

Afroza Khanam, who runs a Facebook-based business selling Indian salwar kameez, a form of traditional dress, also said she was stuck with unsold stock.

“Many customers inquire whether the products are Indian or not before placing orders,” she said. “This has never happened before.”

India exports over $14 billion worth of goods to Bangladesh yearly, and Dhaka depends heavily on New Delhi for essential commodities. An analyst at a research firm said no major decline in Indian product sales has been detected, but some nonessential items including hair oil and snacks have seen substantial drops in demand.

Some shops are cutting the prices of Indian imports to boost sales.

Shops cut prices of Indian goods to boost sales. (Photo by Faisal Mahmud)

Bangladeshi discontent is rumbling months after the BNP refused to take part in the election, which it called a “sham” because of Hasina’s refusal to step aside for a neutral administration to oversee the vote. Voter turnout reached only 40%, with Hasina’s ruling Awami League and its associates clinching most of the 299 seats up for grabs.

BNP Joint Secretary-General Ruhul Kabir Rizvi last month called on supporters to “free” Bangladesh after he symbolically threw away his Indian shawl. The BNP traditionally has had a rocky relationship with India, unlike Hasina’s government.

“Social media is buzzing with the ‘boycott India’ campaign. BNP and 63 other democratic parties are expressing solidarity with it,” he said, later adding, “Hasina has made Bangladesh a vassal state of India. Let’s free our country.”

Hasina has questioned the effectiveness of such a boycott, given Bangladesh’s dependence on Indian imports such as rice, onions and cotton.

“Those advocating for a boycott of Indian goods need to answer a simple question,” Hasina said at the end of March. “Can they truly eat their meals without Indian spices?”

Voters may resent New Delhi, but both governments are in negotiations to ensure a steady supply of agricultural products from India to Bangladesh. India occasionally has withheld key exports such as onions, citing high local demand, leaving Bangladeshis in need. On the other hand, New Delhi views Dhaka as a strategic asset to counter Chinese influence in the region.

“I don’t think this boycott campaign would sustain for a long period, especially considering the multifaceted ties that the current Bangladesh regime has with India,” said Bangladeshi economist Mirza Azizul Islam, who oversaw the country’s Finance Ministry between 2007 and 2008.

He told Nikkei that Bangladesh benefits from being India’s neighbor and it made little sense for Dhaka to rely on other countries.

“The shared land borders and existing transportation networks make it much cheaper and easier to move goods between the two countries, compared to importing from faraway places like China,” Islam said.

Germany-based Bangladeshi financial analyst Zia Hassan said the boycott ultimately could be counterproductive.

“If successful, this boycott could potentially hurt Bangladeshi consumers by depriving them of access to the global value chain that India is enjoying with its increasing economic integration,” Hassan said, explaining that the boycott gives Bangladeshi oligarchs loyal to Hasina the opportunity to expand their market locally.

“Nevertheless, it is a politically important act for the BNP as it has done nothing substantial after the election,” Hassan said. “The boycott has given people an issue to rally around and support them.”

source: asia.nikkei