Indian yarn exporters are exploring alternative transportation methods following Bangladesh’s recent ban on yarn imports through five key land ports. This move has prompted Indian producers to consider inland waterways and sea routes to maintain their export volumes.
The National Board of Revenue (NBR) of Bangladesh issued a notification last month, suspending yarn imports through the Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari land ports. These ports previously facilitated approximately 30% of India’s yarn exports to Bangladesh, primarily comprising special and dyed yarns. The decision aligns with longstanding demands from Bangladeshi spinners, who have raised concerns over the influx of yarn imports affecting local industries.ThePrint In response, Indian exporters are actively seeking alternative routes to sustain their trade. At a recent conference, industry stakeholders discussed the viability of transporting yarn via inland waterways through trans-border rivers. This approach, while potentially slower, offers a sustainable and cost-effective alternative to land routes. Additionally, exporters are considering rerouting shipments through seaports in Gujarat, Tamil Nadu, and Mumbai. Although sea transport may extend delivery times, it is anticipated to be approximately 10% cheaper than land-based methods, offering a silver lining amid the logistical challenges.
The shift in transportation methods is not without its challenges. Exporters express concerns over longer lead times associated with sea and inland waterway transport, which could impact the efficiency of the supply chain. Moreover, the increased reliance on maritime routes necessitates enhanced quality control measures to ensure yarn specifications are met accurately. India’s textile industry, which exported a total of $1.6 billion worth of cotton yarn and $85 million worth of yarn made from manmade fibre in 2024, is closely monitoring the situation. Bangladesh, accounting for about 46% of India’s total cotton yarn exports, remains a crucial market. The current developments underscore the need for adaptive strategies to navigate the evolving trade landscape.
As Indian exporters pivot to alternative transportation methods, the focus remains on maintaining trade volumes and ensuring the resilience of the textile sector. The exploration of inland waterways and sea routes not only addresses immediate logistical challenges but also aligns with broader goals of promoting eco-friendly and sustainable trade practices.