Indian textile industry seeks alternative routes to export yarn to Bangladesh

Bangladesh has recently halted yarn imports from India via land ports, leading Indian textile mills to explore alternative routes and request the Indian government to take up the issue with Bangladesh.

Around 30% of India’s yarn exports to Bangladesh were previously transported through land ports such as Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari. However, Bangladesh’s National Board of Revenue (NBR) has recently stopped permitting yarn imports via land routes. In response, Indian yarn exporters, in a recent meeting, discussed alternative options like container shipping and using inland waterways. They also held discussions with Bangladeshi buyers.

Siddhartha Rajagopal, Executive Director of the Indian Textile Export Promotion Council, said, "Sending goods by sea in containers takes more time. Still, 70% of Indian yarn goes to Bangladesh by sea. Those who used land ports will now have to switch to sea routes. Small ships run from Kolkata, and we can consider using them."

According to K Selvaraju, Secretary General of the Southern India Mills’ Association, about 45% of India’s yarn exports are sent to Bangladesh. Previously, India exported over 100 million kilograms of yarn per month, but that figure has now fallen to just 90 million kilograms. While China and Bangladesh were the two main markets for Indian yarn, China has recently cut back its imports significantly. As a result, exporters are now placing greater focus on the Bangladeshi market.

Textile mills in northern India are also experiencing losses due to the closure of land ports. Many businesspeople have warned that if the situation doesn't improve, it could negatively impact the entire textile sector.