Bangladesh’s yarn imports jump 31% in 2024 as India dominates supply

Bangladesh’s yarn imports surged 31.45 per cent in 2024, reaching 12.15 lakh tonnes, up from 9.24 lakh tonnes in 2023, with 95 per cent sourced from India, says the Bangladesh Textile Mills Association (BTMA). The total import value stood at $3 billion. Garment manufacturers opted for Indian yarn because of competitive prices, timely delivery, and local production struggles caused by gas shortages and high costs. The price gap between imported and local yarn is 20-25 cents per kg, making Indian yarn the preferred choice.

Additionally, the Bangladesh government cut cash incentives on local yarn from 4 per cent to 1.5 per cent, reducing its attractiveness to exporters. The growing demand for finer count and man-made fibre yarn, which local mills struggle to supply, has further boosted imports from India and China.

BTMA President Showkat Aziz Russell raised concerns over yarn smuggling and urged government support for the $25 billion primary textile sector. Meanwhile, former BTMA chief Mohammad Ali Khokon noted that Indian spinners have set up warehouses near Bangladesh’s land ports to meet rising demand efficiently. With India offering strong incentives to its textile sector, its dominance in Bangladesh’s yarn market is expected to continue unless local production challenges are addressed.