Import Curbs Latest News
- India has decided to ban the import of jute products and woven fabrics from Bangladesh through all land routes.
Background
- In June 2025, India imposed strict restrictions on the import of jute products from Bangladesh through all land routes, restricting entry only through the Nhava Sheva seaport in Maharashtra.
- This policy shift, announced via a Directorate General of Foreign Trade (DGFT) notification, excludes Bangladeshi goods in transit to Nepal and Bhutan.
- This move comes amidst rising concerns about Dhaka’s growing strategic proximity to Beijing and persistent trade malpractices by Bangladeshi exporters, including circumvention of anti-dumping duties (ADD).
- These factors have combined to harm India’s domestic jute industry, especially in states like West Bengal and Bihar.
Items Covered Under the Import Curbs
- The restrictions apply to a wide range of jute-related goods, including:
- Jute products, Flax tow and waste, Jute and other bast fibres, Single yarn of jute or flax, Multiple folded woven fabrics, Unbleached woven jute fabrics
- These categories previously enjoyed duty-free access under the South Asian Free Trade Area (SAFTA) Agreement.
Impact of Subsidised Imports on the Indian Jute Industry
- India’s jute sector has long suffered due to dumped and subsidised imports from Bangladesh. According to official sources, Bangladeshi exporters continue to receive direct subsidies from their government, undermining Indian manufacturers.
- Although India imposed anti-dumping duties following investigations by the Directorate General of Anti-Dumping and Allied Duties (DGAD), these measures were circumvented through:
- Technical exemptions
- Export through firms exceeding production capacity
- Mis-declaration and under-invoicing
- Despite the ADD, jute imports from Bangladesh rose from USD 117 million in FY 2021-22 to USD 144 million in FY 2023-24.
Fallout for Indian Farmers and Mills
- The increased influx of low-cost jute goods has disrupted the domestic market. In FY 2024-25, jute prices in India fell below Rs. 5,000 per quintal, lower than the Minimum Support Price (MSP) of Rs. 5,335, triggering liquidity crises and mill closures.
- Six jute mills remain shut with Rs. 1,400 crore in unpaid dues, including Rs. 400 crore in legacy liabilities.
- Over 4 lakh workers are employed in the organised jute sector, with rural livelihoods in West Bengal, Bihar, Assam, and Odisha heavily dependent on the crop.
- The availability of under-priced Bangladeshi products has also led to under-utilisation of Indian mills, threatening their viability and disrupting local procurement.
Policy Response and Strategic Signals
- The Indian government’s decision to channel imports exclusively through Nhava Sheva port is a calibrated move aimed at:
- Ensuring better quality checks (especially hydrocarbon oil-free status)
- Preventing misdeclaration and fraudulent labelling
- Closing loopholes that allow routing through third countries
- India's response is not limited to trade concerns. It signals dissatisfaction with Bangladesh’s interim government’s increasing tilt towards China and its inadequate response to repeated trade violations.
- While Bangladesh has made minor adjustments under diplomatic pressure, it has continued to incentivise the export of value-added jute products, further exacerbating the trade imbalance.
Long-Term Outlook: Revival of the Indian Jute Sector
- India's jute industry is poised for regulatory protection, with more streamlined import monitoring and potential policy reforms on the horizon.
- Officials indicate a willingness to enforce tighter scrutiny and push back against trade practices that destabilise domestic production.
- Moreover, the government may explore extending protection mechanisms to raw jute, which currently remains outside the ADD regime, to protect the incomes of Indian farmers.
Source: IE
India Bangladesh Jute Import Curbs FAQs
Q1: What prompted India to restrict jute imports from Bangladesh?
Ans: India acted due to trade malpractices, subsidy-backed dumping, and Bangladesh’s growing proximity to China.
Q2: Which items are restricted under the new import rules?
Ans: Jute yarn, fibres, flax tow, woven jute fabrics, and related products are restricted from land route entry.
Q3: How have these imports impacted Indian jute farmers and mills?
Ans: They depressed jute prices, caused mill closures, and led to ₹1,800 crore in unpaid dues.
Q4: Why is the restriction limited to Nhava Sheva port?
Ans: The port enables better quality checks and prevents circumvention of anti-dumping duties.
Q5: What is the broader strategy behind India’s trade move?
Ans: It is both a trade safeguard and a geopolitical signal to counter Dhaka’s tilt toward Beijing.