India’s textile industry is facing a significant challenge
as Bangladesh has closed its land ports for yarn exports,
affecting nearly 30 per cent of India’s yarn shipments, primarily dyed and special yarn.
This closure has disrupted the usual trade flow, leaving
Indian textile mills scrambling for alternative
transportation options.
At a recent meeting, yarn exporters discussed various
strategies, including shipping yarn in containers via sea
and exploring inland waterways.
However, there are concerns about the lead time associated
with shipping by sea, as currently, about 70 per cent of
Indian yarn exports to Bangladesh are transported via sea.
The switch to sea transport from land ports could further
delay deliveries, impacting the efficiency of the supply
chain. Siddhartha Rajagopal, executive director of the
Cotton Textiles Export Promotion Council, emphasised the
need to explore smaller ships from Kolkata, which could be
a viable solution for transporting yarn by sea.
Despite this, the primary concern remains the prolonged
lead times, which could hinder the timely delivery of goods
to Bangladesh.
India’s yarn exports to Bangladesh constitute around 45
per cent of its total yarn exports, amounting to over 100
million kilograms monthly.
However, due to the recent disruptions, this has reduced to
approximately 90 million kilograms.
The closure of land ports, coupled with a decrease in yarn
exports to China, could significantly impact India’s textile
value chain. Should the situation persist, it could lead to
excess yarn being directed towards the domestic market,
potentially driving prices down and impacting the broader
textile industry.
Textile mills in northern India are currently feeling the
brunt of the port closure. If the issue remains unresolved, it
could have a ripple effect on the entire textile spinning
sector across the country.