Kamruzzaman Bablu :
Yarn imports from India have surged due to rising production costs and disruptions in local manufacturing caused by the ongoing gas crisis. Imports of cotton from India have also seen a substantial increase.
According to recent data from Bangladesh Bank, between April and August this year, Bangladesh imported $1,084.8 million worth of cotton from India – a significant rise from $727.1 million during the same period last year, reflecting a growth of 49.2 percent.
Similarly, imports of man-made staple fibre from India rose by 28.47 percent, reaching $62.4 million this year compared to $48.6 million the previous year.
Additionally, imports of dyeing and tanning extracts, essential raw materials for Bangladesh’s garment industry, increased by 15 percent.
The data from Bangladesh Bank indicates that during July and August this year, the country’s ready-made garment sector imported $2.84 billion worth of raw materials, up from $2.51 billion in the same months last year.
This year’s imports included $640 million for cotton, $550 million for yarn, $126.8 million for textile products, $224.3 million for staple fibre, and $151.4 million for dyeing and tanning materials, with each category experiencing growth compared to the previous year.
Anwarul Alam Chowdhury Parvez, President of the Bangladesh Chamber of Industries (BCI) and Chairman of Evins Group, explained that local spinning mills have seen a decline in production due to the ongoing gas crisis.
He noted that Indian yarn is being sold at highly competitive prices. Rising gas prices and interest rates in Bangladesh have further escalated local yarn production costs, prompting an increase in yarn imports from India.
Notably, in addition to lower local production, there are logistical
advantages to importing from India. Indian goods can be delivered swiftly via trucks through land ports.
Furthermore, unlike imports from other countries that necessitate full-order shipments, orders from India can be received in partial shipments, alleviating financial pressure on importers.
Shams Mahmud, Managing Director of Shasha Denims Ltd, highlighted that the gas crisis over the past two years has severely impacted local spinning mills and knit composite mills, making it challenging for them to maintain competitive pricing. Consequently, the ready-made garment sector is increasingly sourcing more affordable yarn from India.
A recent report from the United States Department of Agriculture (USDA) noted that Bangladesh imported $1.41 billion worth of yarn in 2023, with 84.5 percent of that total originating from India.
Currently, Bangladesh’s textile factories can meet approximately 85 percent of the demand for knit fabrics and 40 percent for woven fabrics, yet they rely on imports for yarn used in high-value garments.
While the country’s textile industry has the capacity to utilise 1.5 crore bales of cotton, it currently consumes only 85 lakh bales.
With Bangladesh emerging as a significant market for Indian textile companies, major players such as Lahoti Overseas Limited, Square Corporation, and Indorama are exporting a substantial portion of their yarn to the country.
Other Indian companies are also entering this market, attracted by its growing demand.
