Bangladesh has restricted import of yarn from India through its land ports through an order dated April 13.
India exported cotton yarn worth $ 1.6 billion in 2024 and manmade fibre (MMF) yarn worth nearly $ 85 million. A substantial volume of yarn goes through land.
On April 25, India rescinded its 2020 order that permitted transhipment of goods from Bangladesh through its Land Customs Stations to third countries, citing congestion at its ports.
According to Siddhartha Rajagopal, Executive Director of Cotton Textiles Export Promotion Council, close to 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 said.
Textile mills in the north, especially the small and medium scale units, prefer to ship by land as it is cost effective. They will now have to export through the Mundra, Thoothukudi, or Nhava Sheva ports and it will lead to higher costs. Readymade garment exporters in Bangladesh who are using imported yarn from India will also have to pay higher price due to hike in logistics cost and will face delays, he said.
Rakesh Mehra, chairman of the Confederation of Indian Textile Industry, said Bangladesh accounts for more than 45% of cotton yarn exports from India. The recent suspension of imports of cotton yarn from India by Bangladesh’s National Board of Revenue will have a serious impact on India’s cotton yarn exports to Bangladesh.
Trade data suggests that Bangladesh has been the fastest growing market for India’s cotton yarn with its exports growing at a Compound Annual Growth Rate (CAGR) of 25% during the last five years. “As India is also a large market for Bangladesh’s apparel industry, we are hopeful of an early resolution of this issue,” he said.
