Lac exports from India to Bangladesh decline

For years, traders in West Bengal have relied on exporting lac (gala) to Bangladesh, but recent reductions in exports are raising concerns. Lac is a key industry in Purulia district, West Bengal, where over 30 factories process raw lac into lac sticks. However, there has been a significant drop in demand from Bangladesh. While the domestic market in India remains stable, the slowdown in exports to Bangladesh is causing anxiety among traders in both countries, who are now facing the impact of reduced business.

Last year, approximately 100 tons of lac were exported to Bangladesh. However, exports were completely halted during periods of political instability in Bangladesh. Once the situation began to stabilize, monthly exports resumed at around 12 tons of lac.

Shivram Mahato, a long-time trader in the lac industry, said, "India produces around 22,000 metric tons of lac every year, with a large portion being exported abroad. In the past, over 600 tons of lac were exported to Bangladesh annually, but that figure has now dropped significantly."

Lac traders in West Bengal claim that this decline in exports has also impacted Bangladesh. Lac is widely used in the boating industry in Bangladesh, where numerous rivers, ponds, and canals make wooden boats essential. It is applied to the bottoms of these boats to prevent water damage.

Beyond boats, lac is utilized in several other industries. It is used to varnish wooden furniture, produce various types of paints, and serve as an insulating varnish in sectors like arms manufacturing, railway factories, and electrical industries. Lac is also used for sealing postal letters and parcels, dyeing leather, and filling hollow parts in jewelry. Additionally, it has significant applications in the perfume industry.

The relationship between Bangladesh and India has yet to fully stabilize, leading to challenges for those involved in this trade in both countries.