Bangladesh halted yarn imports from India through land ports shortly after India suspended the transshipment facility for Bangladesh’s export goods.
Bangladesh’s National Board of Revenue (NBR) has prohibited the import of yarn from India via land ports following continuous requests from local textile industry representatives. The NBR, through a new notification released on Tuesday, declared the termination of the yarn import facility at five major land ports—Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari—which were the main gateways for yarn imports from India.
The revision, which replaced an earlier circular from August 27, 2023, was enforced immediately. Goods other than yarn can still be imported through these ports without any restrictions, while yarn imports are now directed exclusively to seaports and airports.
The interim government of Bangladesh has justified the move by citing the financial strain on domestic textile millers attributed to the availability of cheaper imported raw materials for the garment industry. According to the government, local yarn producers are struggling to compete with imported yarn, which is available at a lower cost.
In February, the Bangladesh Textile Mills Association (BTMA) urged the government to cease yarn imports through land ports. The BTMA argued that lower-priced Indian yarn was causing substantial financial losses for domestic producers. To address the issues, the interim government temporarily paused yarn imports through land ports in March.
The government noted that land ports lack adequate facilities to verify yarn counts according to international standards. Consequently, it has been recommended that yarn imports should be conducted exclusively through seaports.
While the ban has garnered support from textile millers, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) voiced concern about its potential impact. The association warned that it could hinder small and medium garment businesses from sourcing yarn quickly, resulting in increased costs.
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