The National Board of Revenue (NBR) has announced a notification revoking the ability to import yarn through the land ports of Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari, all situated along the India-Bangladesh border. This new notification, issued on Tuesday, amends a previous order from August 27, 2024, and the decision is effective immediately.
According to sources within the Indian textile sector, these ports have been the primary entry points for yarn imported into Bangladesh from India. Historically, India has been the leading yarn supplier to Bangladesh’s garment and textile sector, also providing a significant amount of fabric. However, bilateral trade has faced considerable challenges since the establishment of the Interim regime in Bangladesh last August.
This recent Bangladesh yarn import ban is anticipated to shift Bangladesh’s yarn imports toward other countries, particularly China. However, sourcing yarn from China or other nations via seaports typically takes 2 to 3 weeks and incurs higher shipping costs. In contrast, yarn shipments from India reached Bangladesh in just 2 to 5 days through land routes. Many Indian textile firms had also established warehouses in Kolkata to facilitate quicker and more economical deliveries.
It is said that the Bangladesh yarn import ban is intended to safeguard its domestic textile industry. Nevertheless, local manufacturers caution that it could disrupt production and negatively impact the industry’s competitiveness on the global stage.
