Textile export worth US$750 mln by road blocked by Bangladesh
Textile export was restricted by Bangladesh from India through its land ports through an order dated 13 April. In retaliation, on April 25 India rescinded its 2020 order that permitted transshipment of goods from Bangladesh through its Land Customs Stations to third countries, citing congestion at its ports. As a response, Bangladesh has decided to expand its air cargo capacity, accelerate efforts to diversify export channels and reduce dependence on its neighbour.
The Cotton Textiles Export Promotion Council has warned that the restrictions imposed by Bangladesh is a matter of deep concern. Textile mills in the north, especially the small and medium scale units, prefer to send by land as it is cost effective. They will now have to export through sea ports like Mundra, Thoothukudi, or Nhava Sheva which will lead to higher costs. Readymade garment exporters in Bangladesh who import yarn from India will also have to pay higher price due to hike in logistics cost and also face delays. The Confederation of Indian Textile Industry observed that the suspension by Bangladesh’s National Board of Revenue will have a serious impact on India’s cotton yarn exports to Bangladesh.
India exported basic textiles – fibre, spun yarn, filament, woven fabric and knit fabric, worth US$3.12 billion in 2024-25. A substantial volume (one-fourth) of these traveled through land. Data collated by Textile Beacon from all ports showed that Bangladesh accounted for 31% of basic textiles exported in 2024-25. About 44% of spun yarn and 54% of all fibres were exported to Bangladesh that year. Bangladesh was the top destination for woven fabric, cotton and spun yarn during the year.
Cotton and cotton yarn export may get hit
About 54% of cotton and 17% of cotton yarn export to Bangladesh was transported by road in 2024-25. In fabric, 46% of woven fabric and 24% of knit fabric export was by road to Bangladesh. Road transport was used only between September and March in the fiscal year. Indian textile mills were now looking for alternative transportation options for yarn exports to Bangladesh.
