Bangladesh may halt yarn imports through land ports to protect its local textile and spinning sectors, Commerce Secretary Mahbubur Rahman announced. This potential policy shift comes after longstanding demands from entrepreneurs in these industries, who expressed concerns about the negative impact of smuggled yarn entering the market via land ports. Currently, yarn from India is imported through both seaports and four designated land ports—Benapole, Sonamasjid, Bhomra, and Banglabandha—with the latter having been permitted since January 2023 to meet post-pandemic fiber demand.
Rahman noted that while the ministry will further deliberate on the issue and could decide within the next week, yarn imports through seaports will continue as usual. Textile millers argue that land port imports lack proper testing facilities, leading to mis-declarations; importers can open letters of credit for two tons but end up receiving over ten tons, thereby undermining the domestic yarn sector. In contrast, leaders from the Bangladesh Garment Manufacturers and Exporters Association and the Bangladesh Knitwear Manufacturers and Exporters Association have requested that land port imports remain unchanged.
Textile Mills Association President Showkat Aziz Russell highlighted that importing yarn through seaports takes only two weeks, making it a more convenient option. Moreover, he mentioned that mills currently have around Tk 10,000 crore worth of yarn stockpiled, partly due to India dumping yarn at lower prices. This situation underscores the critical need to address smuggling and mis-declaration issues to safeguard the local industry.
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