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Bangladesh banned the import of yarn from India: Bangladesh’s National Revenue Board (NBR) has banned the import of yarn from India with immediate effect. Under this decision, import of threads will not be allowed through major ports like Benapol, Bhomara, Sonmasjid, Banglabandha and Burdari. This step has been taken after a complaint by BTMA (Bangladesh Textile Mills Association). The complaint claimed that the local textile industry is suffering heavy losses due to importing threads from India at cheap prices.
What will be the effect of this decision?
The BTMA says that the price of threads imported from the site route from India to the site is much lower than the threads imported by sea route, causing local mills to suffer competitive losses. For example, 30 single thread in Bangladesh costs $ 3.40 per kg, while in India it is $ 2.90 and Vietnam is $ 2.96 per kg. In addition, the BTMA also alleged that the importers are stealing taxes through incorrect declarations due to lack of adequate infrastructure at land ports and lack of investigation facilities.
However, Bangladeshi apparel exporters have described this decision as “suicidal”. Mohammad Hatem, President of BKMEA (Bangladesh Nitwear Manufacturers and Exporters Association), said the move will increase the cost of stitched costume exporters and will be more difficult to compete in the market for small and medium enterprises (SMBs). Bangladesh’s apparel industry is the basis of the economy of the country. It is dependent on India for about 95% of its thread imports. Bangladesh imported 1.25 million metric tonnes of yarn in 2024, which is 31.5% higher than 2023.
Tension in India-Bangladesh relations
This decision is a new step in current stress in Indo-Bangladesh trade relations. Recently, India had canceled the transmission facility provided to export goods to third countries through land customs stations in Bangladesh. Indian Foreign Ministry spokesman Randhir Jaiswal said that this facility is increasing congestion at Indian airports and ports, which is delaying and increasing India’s cost.
Apart from this, the recent statement of Mohammad Yunus, the chief advisor to the interim government of Bangladesh, has increased political tension between the two countries. Yunus described the northeastern states of India as a ‘land surrounded’ and invited China to increase its economic presence in the region. Business relations between India and Bangladesh have been the strongest in South Asia, but recent events have affected the relationship.
In 2023-24, India exported $ 11 billion to Bangladesh. It included thread, cotton, engineering goods and petroleum products. In addition, India’s import from Bangladesh has been $ 1.8 billion. Indian exporters are facing delays in recent months due to political instability and dollar deficiency in Bangladesh.
