India Bans Jute Imports from Bangladesh via Land and Sea Ports

In a significant trade move, India has imposed port entry restrictions on jute and allied products from Bangladesh, citing concerns over subsidized imports that harm the Indian jute sector. The restrictions, effective immediately from June 27, 2025, will apply to all land and seaports, with the sole exception of Nhava Sheva seaport in Mumbai, according to a notification from the Directorate General of Foreign Trade (DGFT).

Why in News?

India has blocked jute imports from Bangladesh through all land and sea ports except Nhava Sheva. The move follows an earlier restriction on apparel imports via land ports announced on May 17, 2025. India cites unfair trade practices, dumping, and continued subsidies by Bangladesh as the key reasons for the decision.

Objectives of the New Trade Restriction

• To protect the Indian jute industry, which employs around 4 lakh workers.
• To counteract the effects of artificially low prices caused by dumped and subsidized imports from Bangladesh.
• To ensure fair trade practices and uphold livelihood security for Indian jute farmers and mill workers.

Key Features of the Restriction

Effective Date: June 27, 2025

Covered Products

• Flax tow and waste (incl. yarn waste)
• Jute and other textile bast fibers
• Single yarn of jute
• Woven/unbleached woven fabrics of jute

Banned Entry Points

• All land ports between India and Bangladesh
• All seaports except Nhava Sheva (Mumbai)

Geographical & Sectoral Impact

• States Dependent on Jute West Bengal, Bihar, Assam, Odisha, Andhra Pradesh, Tripura, Meghalaya
• Sectors Affected Organized jute mills, value-added product units, and jute farmers

Background and Rationale

• Despite anti-dumping duties imposed earlier, jute imports from Bangladesh continued to grow.
• Indian authorities argue that Dhaka’s export subsidies continue in violation of fair market access terms.

The influx of cheap jute has led to,

• Underutilization of Indian jute mill capacity
• Unemployment in rural industries
• Income loss for Indian farmers

Official Statement

• “The market access extended by India in good faith cannot be undermined to the detriment of India’s economic interests. Bangladesh must not be allowed to persist with unfair trade practices that harm the livelihood of Indian farmers and mill workers.” – Government source