The Bangladesh government has banned import of yarns from India to the country via land ports through a notification from the National Board of Revenue (NBR) issued on Tuesday.
The notification states import of yarn has been banned through the land ports at Benapole, Bhomra, Bangabandha, Burimari and Sonamasjid with immediate effect. Import from air and sea routes are still permitted.
The announcement came barely two days after the NBR announced a ban on the import of several produces from India that includes duplex board, newsprint, Kraft paper, rolling paper for cigarettes, fish, potatoes, powdered milk, tobacco, parts for radio, television sets, bicycles and motor, Formica sheets, ceramic sanitary ware, stainless steel products, marble slabs, tiles and mixed fabrics.
An exemption has been made for VAT-registered bidi manufacturers in Bangladesh, who have been allowed to continue import of raw tobacco stems.
Similar ban has also been imposed on two other neighbours, Nepal and Bhutan with the exception of yarn and potatoes.
Just about a week ago, the Narendra Modi government rescinded the transshipment facility for Bangladesh export cargo to other countries.
Acting on an appeal by the Bangladesh Textile Mill Association this February, the Bangladesh Trade and Tariff Commission recommended temporary suspension of land port imports to protect the domestic textile industry.
The NBR had taken a similar decision in 2004.
Despite the frosting of ties between the two countries after former Prime Minister Sheikh Hasina was forced to quit the country and seek refuge in India last year, Bangladesh’s garment manufacturers’ continued to rely on Indian yarn for the competitive pricing, timely delivery of bulk consignments and also internal problems triggered by a 150 per cent hike in gas price in February 2023 that shot up cost of production of domestic yarn.
The presence of Indian warehouses near the land ports ensured the produce was delivered to the producers at the shortest possible time, while those from other countries take the sea route which takes two to three weeks to reach Bangladesh ports.
The rising anti-India sentiments in Bangladesh since 2024 after the toppling of the Hasina regime, did not deter the country from importing Indian yarn. According to a report, Bangladesh’s import of Indian yarn went up to 12.15 lakh tonnes in 2024 from the 9.24 lakh tonnes in 2023.
Bangladesh is heavily dependent on its textile industry which makes up for around 83 per cent to 84 per cent of the total exports. The neighbouring country with which India’s ties have taken a tumble since last August imports fabrics, dyes, chemicals, machinery and yarns from India among other products. According to the India Brand Equity Foundation (IBEF), in the financial year 2024-25, India exported 5,620 commodities to its immediate eastern neighbour at US$ 11.06 billion.
A report published in the Dhaka newspaper Daily Star recently claimed the local textile sector was affected by the closure of mills following the political upheaval since last July and the general air of instability and occasional violence. The local garment exporters prefer Indian yarn as the price difference with the local produce comes to around 20-25 cents per kg.
“There was a time when the local producers opted for the local produce as the government gave an incentive of four per cent. Last year it was reduced to 1.25 per cent, making it less lucrative. Also for finer quality of yarn, we have to depend on India and China as our local producers falter in delivering the required quantity on time,” said a Dhaka-based exporter on conditions of anonymity. “To meet the rising demand of man-made yarn too we have to depend on India and China.”
