In a significant escalation of trade measures, India has shut all land routes for jute and allied fibre imports from Bangladesh, allowing entry only through the Nhava Sheva seaport in Maharashtra. The move, announced by the Directorate General of Foreign Trade (DGFT), is aimed at curbing “unfair trade practices” and protecting India’s domestic jute industry.
🚫 What the New Directive Means
Effective immediately:
- All land and other seaports are barred from handling jute imports from Bangladesh
- Only Nhava Sheva port in Mumbai is authorized for such imports
- Re-exports via Nepal and Bhutan are also prohibited
- The order impacts jute yarn, fibre, bags, woven fabrics, and other bast fibre products
This restriction follows earlier curbs on ready-made garments and processed foods, and comes amid strained India-Bangladesh trade ties.
📉 Why India Took This Step
Officials cited:
- Dumped and subsidised jute imports from Bangladesh hurting Indian producers
- Circumvention of anti-dumping duties through mislabelling and exemptions
- Artificially depressed prices impacting jute farmers in West Bengal, Bihar, Assam, and other states
“To safeguard the interests of the domestic jute industry… it has been decided to restrict Bangladesh imports of jute and jute products to India through only Nhava Sheva port,” a senior official told PTI.
🌐 Trade Fallout and Regional Impact
- The move affects $770 million worth of Bangladeshi exports, nearly 42% of bilateral imports
- Petrapole-Benapole trade corridor, the busiest land route, saw truck movement drop by over 70% within a day
- Over 70 trucks returned mid-route, and dozens more were stranded at the border
🧠 Strategic Signal or Trade Retaliation?
Analysts view the restriction as a calibrated response to Bangladesh’s own curbs on Indian goods. Ajay Srivastava of GTRI noted:
“We did not prohibit any imports… We said they cannot come through land route. If you want to ship, ship through sea route”.
Stay tuned for diplomatic responses and industry reactions.
