Bangladesh restricts import of yarn from India by land 

Bangladesh has restricted import of yarn from India by way of its land ports by way of an order dated April 13.

India exported cotton yarn price $ 1.6 billion in 2024 and artifical fibre (MMF) yarn price almost $ 85 million. A considerable quantity of yarn goes by way of land.

On April 25, India rescinded its 2020 order that permitted transhipment of products from Bangladesh by way of its Land Customs Stations to 3rd nations, citing congestion at its ports.

In keeping with Siddhartha Rajagopal, Government Director of Cotton Textiles Export Promotion Council, near 32 % of yarn exported to Bangladesh is by land. The restrictions imposed on the export of cotton yarn is a matter of deep concern,” he stated. 

Textile mills within the north, particularly the small and medium scale items, favor to ship by land as it’s value efficient. They are going to now need to export by way of the Mundra, Thoothukudi, or Nhava Sheva ports and it’ll result in increased prices. Readymade garment exporters in Bangladesh who’re utilizing imported yarn from India may also need to pay increased worth because of hike in logistics value and can face delays, he stated.

Rakesh Mehra, chairman of the Confederation of Indian Textile Business, stated Bangladesh accounts for greater than 45% of cotton yarn exports from India. The latest suspension of imports of cotton yarn from India by Bangladesh’s Nationwide Board of Income may have a severe influence on India’s cotton yarn exports to Bangladesh. 

Commerce knowledge means that Bangladesh has been the quickest rising marketplace for India’s cotton yarn with its exports rising at a Compound Annual Development Fee (CAGR) of 25% over the last 5 years. “As India can also be a big marketplace for Bangladesh’s attire trade, we’re hopeful of an early decision of this situation,” he stated.