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Bangladesh has begun importing Indian cotton
Six months after India imposed a ban on cotton exports, Bangladesh has started importing Indian cotton again. On Monday, customs officials reported that 144 trucks carrying a total of 8,253 bales of cotton entered the country. This marks a significant shift in trade relations between the two neighboring nations.
Dipak, the manager of LGW, an Indian cotton export company, explained that on April 9, the Indian Central Ministry of Finance issued a notice imposing a Rs 2,500 per ton value-added tax on exported cotton. Additionally, the government mandated that all cotton export permits must be issued from New Delhi, not Calcutta, which added logistical challenges for exporters.
Later, on April 19, the Indian government officially banned direct cotton exports to Bangladesh, causing immediate concern among traders and importers. In response, the Indian Cotton Exporters Association filed a petition with the High Court, challenging the legality of the ban. The court's recent ruling favored the exporters, leading to the resumption of cotton exports from India to Bangladesh on Monday.
Bangladesh is one of the world's largest cotton importers, consuming approximately 5.5 million bales annually. Of this, around 4 million bales come from Uzbekistan, while 1 million bales are sourced from India. The recent resumption of Indian cotton exports is expected to ease supply pressures and stabilize prices in the local textile industry.
By Monday night, 144 trucks had successfully imported cotton into Bangladesh through the Benapole customs checkpoint, signaling a new chapter in Indo-Bangla trade relations. This development is being closely watched by both governments and industry stakeholders, as it could set a precedent for future trade policies in the region.