Yarn Import to Bangladesh Halted by India

Bangladesh’s National Board of Revenue has suspended the import of yarn from India through land ports, which include Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari. The notification in this regard was issued on Sunday.

India has withdrawn the transhipment facility for Bangladesh earlier as well.

“The transhipment facility extended to Bangladesh has, over the period, resulted in significant congestion at our airport and ports,” said the Ministry of External Affairs spokesperson, Randhir Jaiswal. Logistical delays and higher costs have been hindering India’s exports and creating backlogs. In this respect, the decision to suspend exports to Bangladesh was made.

Trade-In Yarn

India exported cotton yarn worth dollar  1.6 billion in 2024 and man-made fibre (MMF) yarn worth dollar 85 million, the majority of which is transported through land. Textile mills in the north, especially small and medium-scale units, prefer land to transfer material such as cotton, as it is cost-effective. After the new order, the export will occur through the Mundra, Thoothukudi and Nhava Sheva ports.

According to trade data, Bangladesh has been the fastest-growing market for India’s cotton yarn, with its export growing at a compound annual growth rate of 25% over the last five years.