New Delhi, Apr 29 (KNN) 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.
(KNN Bureau)
