Desk: The National Board of Revenue (NBR) of Bangladesh has imposed an immediate ban on the import of yarn (thread) from India through land ports. The prohibition applies to major land ports including Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari. The decision comes after complaints from the Bangladesh Textile Mills Association (BTMA), which claimed that the influx of cheap Indian yarn is severely harming the country’s domestic textile industry.
According to BTMA, yarn imported via land routes from India is significantly cheaper than yarn shipped via sea routes, making it difficult for local mills to compete. For instance, in Bangladesh, the price of 30 single yarn is $3.40 per kilogram, whereas in India it’s $2.90 and in Vietnam, it’s $2.96 per kilogram. BTMA also alleged that due to inadequate infrastructure and inspection facilities at land ports, importers are evading taxes through false declarations.
However, the decision has drawn sharp criticism from garment exporters. Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), called the move “suicidal.” He warned that this ban would raise production costs for ready-made garment exporters and make it even more difficult for small and medium-sized enterprises (SMEs) to stay competitive. The garment industry is the backbone of Bangladesh’s economy and depends on India for nearly 95% of its yarn imports. In 2024, Bangladesh imported 1.25 million metric tons of yarn — a 31.5% increase compared to 2023.
This development marks the latest in a series of growing trade tensions between India and Bangladesh. Recently, India revoked a transshipment facility that allowed Bangladesh to export goods to third countries through Indian land customs stations. Indian Foreign Ministry spokesperson Randhir Jaiswal stated that the transshipment system was causing congestion at Indian ports and airports, leading to delays and higher costs for India’s own exports.
Adding to the strain, a controversial remark by Muhammad Yunus, Chief Adviser of Bangladesh’s interim government, further escalated diplomatic tensions. Yunus described India’s northeastern states as “landlocked” and invited China to expand its economic presence in the region.
India and Bangladesh have traditionally enjoyed strong trade ties. In 2023–24, India exported goods worth $11 billion to Bangladesh, including yarn, cotton, engineering goods, and petroleum products. In return, India imported $1.8 billion worth of goods from Bangladesh. However, in recent months, Indian exporters have reported delays in payments due to political instability and a dollar shortage in Bangladesh.
This recent ban is likely to further strain the economic relationship between the two South Asian neighbors.