Bangladesh restricts yarn imports from India: concerns among clothing exporters

The Bangladeshi tax authority, the National Board of Revenue (NBR), has decided that yarn from India can no longer enter the country via five key land ports. These include the border crossings at Benapole, Bhomra, Sonamasjid, Banglabandha and Burimari, according to The Times of India. According to the Bangladeshi ministry, the decision was taken to protect local yarn producers. They are reportedly struggling to compete with the low prices of yarn imported from India.

Bangladesh is the second largest clothing producer in the world after China and is heavily dependent on yarn. The decision by the NBR is therefore causing concern among clothing exporters. They fear that the search for alternative suppliers, such as Pakistan, will lead to longer delivery times and higher costs, according to Maritime Gateway and The Times of India.

India-bangladesh trade relations under pressure

The trade relations between India and Bangladesh have been under considerable diplomatic strain since the fall of Sheikh Hasina's government in August last year, according to several media outlets, including Maritime Gateway, OpIndia and The Daily Star.

Bangladesh is located in South Asia and is surrounded on three sides by India. In the southeast, the country also shares a border with Myanmar.