Indian textile industry seeks ways to boost yarn exports to Bangladesh

Currently, mills located in northern India are bearing the brunt of the port closures.

Following the closure of three land ports between Bangladesh and India, Indian textile mills have begun seeking alternative modes of transport. They have also appealed to the Indian government to initiate discussions with Bangladesh, since nearly 30 per cent of India’s yarn exports were routed through these land ports.

In a recent meeting, Indian yarn exporters considered several alternative logistics options, including container shipping and the use of inland waterways. They also held discussions with Bangladeshi buyers to explore viable solutions.

Siddhartha Rajagopal, Executive Director of the Cotton Textiles Export Promotion Council, noted that sending goods in containers via sea posed a challenge due to the extended lead time. He explained that even at present, around 70 per cent of Indian yarn exports to Bangladesh were transported by sea. With the land ports now closed, exporters who had been using those routes would also shift to sea transport. He added that smaller ships operating from Kolkata could be a potential solution and suggested that the feasibility of using those vessels should be explored.

K Selvaraju, secretary general of the Southern India Mills’ Association, stated that approximately 45 per cent of India’s yarn exports were destined for Bangladesh. He pointed out that India previously exported over 100 million kg of yarn per month, but the volume had recently declined to about 90 million kg. China and Bangladesh were traditionally India’s largest yarn markets, though China’s imports have dropped significantly in recent years. Selvaraju warned that if the 30 per cent of exports going to Bangladesh were disrupted, the surplus yarn would enter the domestic market, leading to price drops and affecting the entire domestic textile value chain.

Currently, mills located in northern India are bearing the brunt of the port closures. However, Selvaraju cautioned that if the situation persists, the entire Indian textile spinning sector could eventually suffer adverse consequences.

News source: TBS News