Smuggling Adds Challenges to Locals and Rohingyas in Cox’s Bazar

Just a couple of weeks of ago, security forces in Cox's Bazar detained three persons and seized several quantities of food items, including edible oil, four, sugar and spices, which were supposedly destined for war-torn Myanmar. Meanwhile, PM Hasina has recently directed the security forces to take stringent measures against commodity hoarding and price gouging during the month of Ramadan. While hoarding of commodities and artificial price hike of essentials in Bangladesh is not a new phenomenon, Ramadan period raises these concerns extensively.

Lately, the concern of smuggling has risen. Reports in January 2024 tell us that law enforcement forces in Cox's Bazar have intensified efforts to curb the smuggling of fuel oil, edible oil, and food products to Myanmar through coastal areas, following a significant rise in such activities in recent months. In operations conducted in December 2023, law enforcement agencies led to the arrest of 28 smugglers; seized items included 7,636 litres of octane, 136 litres of diesel, and 3,752 litres of soybean oil destined for Myanmar. In a series of recent operations, on January 13, RAB seized 2,900 litres of octane in Cox's Bazar and arrested six individuals. On 25 December, the Coast Guard arrested 19 smugglers in Teknaf. The Coast Guard confiscated 1,821 litres of octane, 3,752 litres of soybean oil, and 136 litres of diesel from the smugglers. On 13 December, police arrested a smuggler with 1,500 litres of octane from Sabrang union, Teknaf. These are just some that were caught and reported. Tip of the iceberg, most likely!

Smuggling of goods from and in Bangladesh has continued to be a concern for the country. A plethora of such information, report, and evidence is available. To highlight some of them, according to reports in 2009, Essential commodities, including edible soybean oil, onion, garlic and rice, are being smuggled into Myanmar through at least 23 border points of Teknaf and Ukhia upazilas in the district. On the flipside, banned tablet Yaba, narcotics, sexual stimulant and other items are coming into Bangladesh. Reports claim that about 180 smugglers in 25 syndicates are conducting the illegal trade of crores taka through the border points. Some commodities are recovered by the security forces but most of the goods are smuggled safely.

Very recent reports inform social welfare organization of Mizoram Achik Organisation for the Social Welfare (AOSW) has reported of illegal smuggling of essential commodities to Bangladesh. According to the AOSW, essential commodities such as cattle, drugs, rice, sugar, nut, clothing items, etc. are being smuggled in large quantities to the neighboring country though a number of miscreants. Reports from 2015 state that people on Indo-Bangladesh borders risk their lives every day to smuggle goods as simple as salt, sugar, cumin seeds and powdered milk. These everyday items are scarce, and thus expensive, in Bangladesh but easily available in India. Reports opined that smuggling is a way of life for those engaged in it across the India-Bangladesh borders. All of these underline that smuggling of essentials in and out of Bangladesh has become a very prominent, profitable, and protuberant problem for the country.

Smuggling is an act of tax evasion. It deprives government of revenue for public expenditure. Smuggled goods are often sold at a cheaper price than goods brought onto market legally. Smuggling deprives traders of free competition, and creates undue competition and also under-cuts prices of the locally manufactured goods destroying the local market. This leads to collapse of local industries, development of which is essential for real economic growth of any country.

Challenges and drawbacks of smuggling continue to evolve in Bangladesh. Security agencies have been on high-level of vigilance; but, new developments across the border, especially in Rakhine, have added to the complexities. Latest reports inform that escalating conflict in Rakhine is driving surging needs and protection threats. UN reports inform that across Myanmar 18.6 million people are in need of humanitarian assistance in 2024, with people struggling to survive amid conflict and insecurity, civilian safety and protection threats. Soaring inflation is depleting people’s ability to meet basic needs. The reports also say that more than 2.7 million people are now displaced. The closure of roads and waterways in Rakhine since November 2023 has led to food scarcity and other supply shortages. This has resulted in additional increases in prices of essential goods. This is just a partial scenario of the situation, and undoubtedly conditions are worse.

Recent reports in Myanmar media also inform that people in Myanmar are suffering for soaring prices as prices of commodities have continued to increase in the three-year period since the February 2021 coup. Reports say that price of rice has increased by more than 220% since 2021. High prices and scarcity of fuel has become an added burden. In December 2023 when importers couldn’t pay in dollars, causing delays unloading fuel tankers in major cities, the people were inflicted with the worst of the situation as of yet. The regime was unable to supply importers the US dollars they need to purchase fuel.

Situation on Bangladesh-Myanmar border remains tense as security concerns are high with added distresses of non-conventional security issues that include smuggling of essentials from Bangladesh to Rakhine State. Reports of as recently as last week inform that Bangladesh's Myanmar border along the Bandarban district has turned into a valley of fear as Myanmar's military fights the insurgent group the Arakan Army for control over states of Rakhine and Chin. Crossing into Bangladesh, Myanmar's mortar shells and even defense personnel are instigating panic among the border residents. The villagers on the Bangladeshi side of the border are living an almost displaced life because the local administration has instructed that they evacuate their homes and seek shelter.

If we try to connect the dots using the aforementioned information and situation, we can logically deduce that smuggling of essentials from Bangladesh to Myanmar is now a very potentially profitable venture that vested quarters may have a difficult time not exploring. Law enforcement and intelligence agencies are seeing a surge in smuggling to the intensified conflict between Myanmar government forces and rebels. The continued disruption of internal communication and causing shortages in essential goods in western Rakhine, Sittwe, Buthidaung, Rashidong, and Maungdaw areas is likely to create more demand for smuggled goods, and our intelligence agencies inform that there is no lack of potential candidates to suffice that demand through supplying the goods through illicit means.

Recently, Bangladesh itself is falling victim to lack of imports and constrained economic conditions for a variety of reasons, lack of forex liquidity being a major one. Bangladesh depends on imported grains being the third-largest food-importing country in the world. The falling taka against US dollar and reduced spending power of Bangladeshi people have serious impacts on the lives and livelihoods of the common people, especially those in coastal regions where informal economy is the core of the economic structure.

This only exacerbates the already strained relations between host and Rohingya communities. The situation only adds to the woes of the local community in Cox’s Bazar that is already burdened with food inflation and rising prices of essentials. As criminal elements continue profiteering through smuggling, the locals suffer, while Rohingya community unfairly falls prey to misplaced culpability.

Author: Political and International Affairs Analyst