Bangladesh and India have discussed lifting restrictions on Indian yarn imports through land ports as the two neighbours seek to revive bilateral trade and remove barriers affecting cross-border commerce.
The issue was raised during a meeting between Bangladesh Commerce Minister Khandakar Abdul Muktadir and Indian High Commissioner Dinesh Trivedi in Dhaka on August 24. The talks also covered reopening closed border haats and bringing land ports back to full operational capacity.
Bangladesh currently restricts yarn imports from India through land routes. The restriction was introduced in April 2025 after concerns from the domestic textile industry over competition from imported yarn. Five land ports—including Benapole, Bhomra, Sonamasjid, Banglabandha and Burimari—had previously handled Indian yarn imports.
The latest discussions signal a possible shift towards easing the restriction as both countries look to restore trade flows. Bangladesh’s commerce minister said bilateral trade currently stands at around $13 billion, although commercial activity has slowed over the past one-and-a-half years because of various trade and logistical obstacles.
Indian High Commissioner Dinesh Trivedi urged Bangladesh to remove the restriction on yarn imports through land ports, highlighting the importance of stronger economic cooperation between the two countries. The discussions also focused on making cross-border trade more efficient and addressing obstacles faced by businesses.
The yarn issue is particularly important for Bangladesh’s ready-made garment industry, one of the country’s largest export sectors. India is a major supplier of yarn to Bangladesh, and restrictions on land-based imports have forced a greater share of shipments to move through seaports.
Recent data cited by Bangladeshi media shows the continued importance of Indian yarn. Bangladesh imported around 720 million kg of yarn during January-July 2026, with India accounting for approximately 340 million kg, or 47%, while China supplied about 38%.
The two governments also discussed creating a joint task force involving businesses and improving digital infrastructure to encourage investment, strengthen business-to-business cooperation and accelerate bilateral trade.
For logistics and transport operators, any relaxation of the yarn restriction could increase cargo volumes through Bangladesh’s land ports and restore business for customs brokers, trucking companies, warehouses and other supply-chain operators. It could also reduce reliance on longer sea-based routes for time-sensitive textile inputs.
The discussions form part of broader efforts by Dhaka and New Delhi to address recent trade barriers and restore smoother commercial relations. Bangladesh has also sought the reopening of border haats and improved utilisation of land ports as part of the wider trade facilitation agenda.
No final decision to lift the yarn restriction has been announced yet. However, the high-level discussions indicate that easing land-based yarn imports is now part of the bilateral agenda, potentially opening the way for greater textile and logistics trade between Bangladesh and India.