In a move that has stirred the textile trade landscape in South Asia, Bangladesh’s National Board of Revenue (NBR) has banned the import of cotton yarn from India via land ports, including the critical entry points of Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari. This decision, taken in response to lobbying by domestic industry stakeholders, marks a significant turn in the India-Bangladesh textile trade dynamic.
A Protective Step—or a Strategic Shift?
The ban, introduced ostensibly to protect Bangladesh’s domestic textile mills, is aimed at curbing alleged false declarations and undercutting prices of Indian yarn that have long concerned the Bangladesh Textile Mills Association (BTMA). The restriction, however, only applies to land-based imports, allowing maritime shipments to continue through Indian ports such as Mundra, Nhava Sheva, and Thoothukudi.
Impact at a Glance
| Key Area | Details | Implications |
|---|---|---|
| Ban Implemented By | Bangladesh National Board of Revenue (NBR) | Policy aims to shield local spinning mills from Indian competition |
| Scope of Ban | Land port imports banned: Benapole, Bhomra, Sonamasjid, Banglabandha, Burimari | Sea route imports still allowed |
| Affected Indian Export Volume | India exported $3.57 billion in cotton yarn in 2024; 45.9% went to Bangladesh | Bangladesh is the largest buyer of Indian cotton yarn |
| Stated Reasons | Curbing false declarations and unfair price competition | Responds to pressure from the Bangladesh Textile Mills Association (BTMA) |
| Logistics Impact | Exports rerouted through sea ports (e.g., Mundra, Thoothukudi, Nhava Sheva) | Higher transport costs, longer lead times for Indian exporters |
| Short-Term Effect on Bangladesh | Less competition for local mills, higher domestic demand | Boost to internal production capacity |
| Long-Term Risks for Bangladesh | Reduced sourcing flexibility may affect global apparel competitiveness | Potential strain on supply chain agility |
| Effect on Small Producers | SMEs in both countries may face cost hikes and disruption | Could challenge survival of smaller textile players |
| Trade Relations Outlook | Unlikely to escalate into broader trade conflict | Considered a strategic trade rebalancing effort |
Rising Costs, Shifting Routes
The re-routing of yarn shipments via sea is expected to significantly increase logistics costs, with Indian exporters citing both longer lead times and higher freight charges as challenges. This shift may particularly affect small and medium-sized manufacturers, who often rely on land ports for faster and more economical cross-border trade.
Domestic Gains, Global Challenges
For Bangladesh, the move could bring short-term gains by creating breathing space for its domestic mills, which have struggled to compete with lower-priced Indian imports. However, industry analysts caution that limiting access to competitively priced raw material could undermine Bangladesh’s position in the global apparel value chain, especially given the country’s heavy reliance on ready-made garment (RMG) exports.
Strategic Recalibration or Protectionism?
Experts view the ban as more of a strategic recalibration than an outright protectionist policy. While it appears to cater to domestic economic interests, the decision also reflects a growing desire to reorient sourcing and production within Bangladesh, possibly as part of a broader industrial self-reliance agenda.
What Lies Ahead?
As both nations assess the ripple effects of the ban, it is clear that the decision has reconfigured traditional trade flows between two of the largest textile-producing countries in South Asia. Whether this will push Indian exporters to explore new markets, or motivate Bangladesh to diversify sourcing strategies, remains to be seen.
Conclusion
The yarn import ban via land ports, while rooted in domestic concerns, carries broader trade implications. It underscores the complex interplay between protecting local industries and maintaining robust international trade relations—a balance that both India and Bangladesh will need to manage carefully in the coming months.
Glottis Limited 
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