Bangladesh suspends import of yarn via land ports from India

The National Board of Revenue (NBR) has suspended the import of yarn from India through land ports.

The facilities for importing yarn through Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari land ports have been revoked.

The NBR issued a notification in this regard on Tuesday, with immediate effect.

The new notification revises the earlier one issued on 27 August 2024. Yarn was primarily imported from India through these land ports.

Earlier in February this year, Bangladesh Textile Mills Association (BTMA), an organisation representing textile industry owners, demanded the suspension of yarn imports from India via land ports.

Subsequently, in March, the Bangladesh Trade and Tariff Commission, under the commerce ministry, recommended that the NBR takes measures to halt yarn imports via land ports in order to promote the use of domestically produced yarn in the garment industry.

In a letter addressed to the NBR chairman, the tariff commission suggested continuing yarn imports through seaports as before, until appropriate infrastructure is developed in all land and rail routes, land ports, and customs houses adjacent to the borders to determine yarn count in accordance with international standards, thereby ensuring the protection of the domestic textile industry.

In response, NBR chairman Abdur Rahman Khan issued an order in this regard. However, the import of yarn may still be carried out via sea or other non-land routes.

Sources said yarn produced in the northern and southern regions of India is stored in warehouses in Kolkata before being transported to Bangladesh. This yarn enters the country at relatively lower prices. As a result, yarn imported via land ports has been used more extensively than locally produced yarn.

The Bangladesh Textile Mills Association (BTMA) has claimed that this has caused significant harm to the domestic textile industry.

Sources further indicate that although the prices of yarn produced in China, Turkey, Uzbekistan, and Bangladesh are relatively similar, Indian yarn imported via land ports is significantly cheaper.

In fact, the prices of yarn imported through land ports are much lower than the prices declared at the Chattogram customs house. Consequently, domestic yarn manufacturers are struggling to remain competitive in the market.