Panipat, Haryana: The textile recycling sector in Panipat — India’s largest hub for recycled clothing and home furnishing materials — is facing a sudden disruption following the suspension of rag imports from Bangladesh, its primary source of raw material.

According to industry insiders, although the Indian government’s May directive restricted finished garment imports via land borders, rags and recyclable textile materials were not part of the ban. Despite this, traders in Panipat report that shipments from Bangladesh have unexpectedly stopped, creating confusion and concern across the local industry.

“Bangladesh supplies more than half of the rags that fuel our recycling operations. The halt, with no formal explanation, is alarming,” said a local trader.

The situation has triggered alarm bells among businesses that rely heavily on a steady supply of used clothing from Dhaka and other parts of Bangladesh. These materials are processed and re-manufactured into items such as durries, blankets, and low-cost garments — a thriving cottage industry in Panipat.

Officials are yet to issue a clear statement explaining the cause behind the suspension. However, trade representatives are urging the government to intervene quickly, warning that prolonged disruption could lead to supply shortages, production delays, and job losses in the region.

Panipat’s recycling ecosystem not only provides affordable clothing solutions but also contributes significantly to reducing global textile waste. Any long-term interruption in imports could ripple through the local economy and undermine India’s textile recycling goals.