With trucks stranded at Petrapole in West Bengal along the Bangladesh border amid the turmoil in the neighboring country, yarn manufacturers in Punjab are reporting losses worth crores of rupees, with payments stuck for many.
Triggered by violence in Bangladesh, the international border closure has left over 1,000 trucks, including several from Punjab and Gujarat, stranded. These states are primary exporters of cotton and synthetic yarn to Bangladesh.
Typically, 450-500 trucks move from India to Bangladesh through Petrapole, the largest land port in South Asia, daily, with about 150-200 trucks returning the other way.
AmitThapar, Owner, Ganga Acrowools and Head, CII-Northern Region Export Committee, notes, Punjab has significant stakes in Bangladesh, with total yarn exports exceeding Rs 4,000 crore annually.
Cotton yarn has the biggest share in the state’s exports, followed by acrylic wool. Many agents and companies have offices in Bangladesh. Goods worth over Rs 200-300 crore from the state are estimated to be stuck at the border, affecting orders worth Rs 1,000 crore.
Thapar states, goods worth about Rs 2 crore from his firm are stuck with orders worth Rs 4-5 crore being affected.
Transporter Bajrang Sharma, Goel Roadways, and Member, Management Committee, All India Motor Transport Congress, states, traders have instructed their drivers to park trucks in warehouses near the Petrapole border and return, while others are stranded in queues.
AseemHanspal, Managing Director, Skope and a Strategy Consultant on the advisory board of several textile organisations in both countries, notes, Bangladesh procures more than 50 per cent of its yarn from India for garment manufacturing. The turmoil has disrupted the supply and demand chain, leading to canceled orders.
However, a few garment manufacturers believe the current situation might benefit the industry in the state. Some garment orders are expected to shift to India from Bangladesh to fill the gap caused by the disruption. Garment exports from Bangladesh account for 85 per cent of its total exports. Both government and the industry need to act swiftly as India's garment manufacturers already face stiff competition from Vietnam, Myanmar, and Cambodia, says Sudershan Jain, President, Knitwear and Apparel Manufacturers Association of Ludhiana (KAMAL).
