Bangladesh halts Indian yarn imports via land ports to support local mills

The National Board of Revenue (NBR) has suspended the import of yarn from India through all land ports, effective immediately. A fresh notification issued on Tuesday revokes the previous directive from 27 August 2024. This decision affects major entry points including Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari.

The move comes after repeated demands from the Bangladesh Textile Mills Association (BTMA), which argued that cheaper Indian yarn, particularly stored in Kolkata and transported via land, was undercutting local producers. In March, the Bangladesh Trade and Tariff Commission recommended limiting yarn imports through land routes to protect domestic mills and ensure compliance with global standards in yarn count verification.

Although yarn imports through seaports will continue, the NBR emphasized that imports via land would remain suspended until infrastructure is improved along land and rail routes for proper customs inspections. Local manufacturers say Indian yarn sold via land ports has long been significantly cheaper than both domestic products and those declared at Chattogram port. They argue this price disparity has hurt Bangladesh’s textile sector, even though yarn from China, Turkey, Uzbekistan, and local mills is similarly priced.