Bangladesh closes land route for Indian yarn imports
Bangladesh has stopped the import of yarn from India through its land borders.
This follows an order made by the government on April 13.
India is a major supplier of cotton and manmade fibre yarn to Bangladesh. A large part of this yarn usually travels by land because it is cheaper and faster.
In 2024 alone, India exported cotton yarn worth $1.6 billion and manmade fibre yarn worth about $85 million.
The new restriction comes shortly after India cancelled an earlier rule that allowed goods from Bangladesh to move through Indian land ports to other countries.
The government explained that its ports were too crowded.
According to Siddhartha Rajagopal, Executive Director of the Cotton Textiles Export Promotion Council, about 32% of India's yarn exports to Bangladesh are sent by land, and the new rule is likely to hurt both sides.
“The restrictions imposed on the export of cotton yarn are a matter of deep concern,” he was quoted by The Hindu.
Following the directive, small and medium-sized textile mills in northern India will now have to send their goods by sea through ports like Mundra, Thoothukudi, or Nhava Sheva, which will cost more and take longer.
Garment factories in Bangladesh, which depend on Indian yarn, will also see higher prices and shipping delays.
Rakesh Mehra, chairman of the Confederation of Indian Textile Industry, said Bangladesh is India's biggest buyer of cotton yarn, taking more than 45% of its exports.
He added that trade between the two countries is strong and growing fast, suggesting that both governments quickly find a solution.
