Punjab yarn exporters face major losses amid Bangladesh turmoil
Amid escalating turmoil in Bangladesh, yarn exporters from Punjab are grappling with severe financial losses as trucks remain stranded at the Petrapole border crossing in West Bengal. The unrest in Bangladesh has led to a significant border closure, leaving over 1,000 trucks, including many from Punjab and Gujarat, halted at the crucial gateway.
The Petrapole land port, the largest in South Asia, usually handles around 450-500 trucks heading into Bangladesh daily, with approximately 150-200 trucks returning to India. However, the ongoing chaos has disrupted this vital trade route, impacting the flow of cotton and synthetic yarn exports, which are critical to the economies of Punjab and Gujarat.
Amit Thapar, Owner of Ganga Acrowools and Head of the CII-Northern Region Export Committee, highlights that Punjab has substantial stakes in the Bangladeshi market, with annual yarn exports surpassing Rs 4,000 crore. Cotton yarn, the major export commodity, along with acrylic wool, constitutes a significant portion of this trade. Currently, goods worth an estimated Rs 200-300 crore are stuck at the border, leading to a ripple effect on orders worth around Rs 1,000 crore.
Thapar reports that his own company has approximately Rs 2 crore worth of goods stranded, with orders valued between Rs 4-5 crore also impacted. The situation is exacerbated by transport disruptions, with drivers instructed to park trucks in warehouses near the border and return, while others remain stuck in lengthy queues.
Bajrang Sharma, a transporter with Goel Roadways and a member of the All India Motor Transport Congress, underscores the gravity of the situation, noting the logistical nightmare faced by traders.
Aseem Hanspal, Managing Director of Skope and a strategic advisor for textile organizations in both India and Bangladesh, explains that Bangladesh relies on India for more than 50 per cent of its yarn, which is essential for its garment manufacturing sector. The ongoing crisis has disrupted the supply chain, resulting in canceled orders and uncertainty in the market.
Despite these challenges, there is a glimmer of hope for Indian manufacturers. Some believe that the current disruption might present opportunities for India to capture a larger share of garment orders as manufacturers seek alternatives to fill the void left by Bangladesh. Sudershan Jain, President of the Knitwear and Apparel Manufacturers Association of Ludhiana (KAMAL), points out that while this could benefit Indian exporters, it is crucial for both the government and industry to act promptly. India faces stiff competition from countries like Vietnam, Myanmar, and Cambodia, making swift action imperative to capitalize on the situation.
As the situation unfolds, stakeholders across the textile industry will be closely watching developments, hoping for a resolution that will restore normalcy and minimize the financial impact on Punjab's yarn exporters.