Nepal has sought withdrawal of Bangladesh’s restriction on yarn imports through the Banglabandha land port in Bangladesh saying that the ban was causing financial losses to Nepalese manufacturers. Nepal also wants to yarn exports through the port in Tetulia of Panchagarh.

Nepal has repeatedly been seeking permission for export of yarn, particularly acrylic yarn, to Bangladesh. Nepal exports only acrylic yarn. Bangladesh imposed the restriction on yarn import through land ports back in 2002 to safeguard local cotton yarn industry. Bilateral trade between Nepal and Bangladesh takes place through Banglabandha and Fulbari (Shiliguri of West Bengal) land ports.

Bangladesh textile mills have expressed concern that there is a possibility of yarn coming from a third country if Bangladesh permits import of the product through Banglabandha from Nepal.

Bangladesh will decide depending on the physical infrastructure, manpower and other facilities including laboratory at the port, and the interests of the country. Other relevant factors are the number of spinning mills and the quantity of yarn exports of Nepal and the possibility of export of yarn from a third country that misuses the permission before taking any decision on the issue.