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India expands ban on Bangladesh jute imports!

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In a diplomatic and trade-tightening step, India has broadened its restrictions on imports from Bangladesh—specifically targeting jute products and ropes. Effective immediately, these items can no longer be imported via land ports; instead, all shipments must be routed through Mumbai’s Nhava Sheva seaport.

The Directorate General of Foreign Trade (DGFT) issued a notification citing concerns over dumping of heavily subsidized jute goods such as bast fibres, yarns, woven fabrics, sacks, twine, and rope practices that have adversely affected India’s domestic jute sector, including farmers and mill workers.

The restriction first introduced in June builds on earlier trade curbs imposed on other Bangladeshi goods like garments and processed foods. It also aims to close loopholes that allowed re-routing or third-country transit of jute into India.

While aimed at protecting domestic industry, the policy has drawn sharp criticism from the Indian Jute Manufacturers’ Association (IJMA), which warns that rerouting via Nhava Sheva will sharply increase logistics costs potentially jeopardizing operations in West Bengal, a hub for jute manufacturing.

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