India shifts yarn exports to Bangladesh from land to sea

Bangladesh has solidified its position as a leading global garment exporter, but it remains heavily dependent on India and China for yarn and fabric supplies. India is the largest yarn supplier to the Bangladeshi market. However, the regime change in Bangladesh and the new government’s unfriendly stance have strained trade relations since the second half of last year.

In August 2024, the Bangladesh market became risky for Indian spinning mills, which were uncertain about receiving payments for their supplies. Consequently, they reduced yarn exports as a precaution. While this slowed exports, India remained the most prominent supplier. The land border between the two nations had been vital, offering convenience and enabling shipments within just 3–4 days.

A trader from the Panipat market said that no other country can supply yarn to Bangladesh within such a short timeframe. Shipment costs were also lower via land routes. Another industry source noted that several major yarn producers had established warehouses in Kolkata to facilitate faster exports to Bangladeshi buyers.

Last month, the Bangladeshi government imposed a ban on yarn imports through five land check posts along the India–Bangladesh border, arguing that cheaper Indian yarn was hurting its domestic textile industry. However, the garment sector opposed the move, claiming it would raise production costs and weaken competitiveness in global export markets.

Purusottam Parmanandka, joint managing director of Tiruppur-based Kesharinandan Knit Fabrics Pvt Ltd, told Fibre2Fashion, “Indian exporters and spinning mills are now shipping yarn through Chittagong port in Bangladesh. Although the sea route has increased freight costs and delivery time, it is currently the only feasible alternative. Exporters are being cautious, as Bangladeshi importers are facing challenges in making payments.”

A yarn trader from Delhi added that slow exports to Bangladesh have also contributed to subdued domestic demand. The large capacity of India’s spinning industry cannot be absorbed by the domestic market alone. Reduced shipments to Bangladesh have created a bearish tone in the market, although yarn exports to the neighbouring country have not stopped altogether.

Another market source in Panipat confirmed that Bangladeshi importers are still receiving yarn via sea routes, although transportation now takes 7–10 days. Bangladesh also imports recycled yarn from the Panipat region for use in its home furnishing and garment industries.

ALCHEMPro News Desk (KUL)