Yarn exporters in Punjab fear losses due to Bangladesh crisis

Chandigarh: Yarn exporters in Punjab are expressing concern over potential financial losses due to the ongoing economic crisis in Bangladesh. With fears mounting that payments for their consignments may be delayed or stuck, exporters are on edge.

Despite these concerns, some in the Indian textile industry see the situation as an opportunity to gain more global textile orders as Bangladesh, a major competitor, grapples with its crisis.

India exports an average of 40,000 tonnes of yarn to Bangladesh each month, with Punjab contributing approximately 35% of this export volume. Yarn manufacturers in Punjab highlight that over Rs 4,000 crore worth of yarn is exported to Bangladesh annually. However, the recent closure of borders has halted these exports, posing significant financial challenges for exporters.

Amit Thapar, President of Ganga Acrowool Limited, stated, “Goods worth over Rs 200-300 crore are stuck at the border, and orders worth over Rs 1,000 crore will be immediately affected.” This situation has left exporters anxious about the future of their business dealings with Bangladesh.

On the other hand, some textile manufacturers view the crisis as a chance to expand their market share. With Bangladesh facing difficulties, Indian textile producers anticipate that international buyers may turn to India to fulfill their orders, potentially boosting India’s textile exports.

As the situation unfolds, yarn exporters are calling for government intervention to address the immediate impact of halted shipments and explore strategies to mitigate losses. Meanwhile, the broader textile industry is preparing to seize new opportunities in the global market, hoping to turn the crisis into a catalyst for growth.