New Delhi: India, irked by Bangladesh’s growing overtures towards China and Pakistan after Sk Hasina’s ouster in August 2024, is continuing to hit the eastern neighbour where it hurts the most.
After the May restrictions on the imports of readymade garments, processed food and other items, the Government of India has now directed that jute, woven fabrics and yarns from Bangladesh can only enter India through the Nhava Sheva port in Mumbai.
“Import from Bangladesh shall not be allowed from any land port on India-Bangladesh border,” the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, said in a notification, that was “effective immediately”.
This latest order introduces a new sub-paragraph under Para 2, mandating that specific imports from Bangladesh must adhere to designated entry points, signaling a strategic shift to regulate trade and protect domestic industries.
The move is aimed at protecting domestic jute industry.
Jute is produced in West Bengal, Bihar, Assam, Odisha, Andhra Pradesh, Tripura and Meghalaya and jute industry employs around four lakh workers in organised mills and diversified units.
Bangladesh reportedly had been pushing jute exports and incentivising the same, which led to artificially depressed prices in India. This artificially depressed prices caused by subsidised imports had a direct and adverse impact on the income of jute farmers.
This also reflects a reciprocal trade policy, responding to Bangladesh’s own limitations on Indian yarn and rice imports.
It is estimated that these measures could redirect billions in trade value, potentially boosting Indian production by up to ₹1,000-2,000 crore annually, as local industries fill the gap left by restricted imports. Bangladeshi exporters, who rely heavily on land routes for the $700 million trade with India, face logistical challenges and increased costs.
Transit goods from Bangladesh to Nepal and Bhutan via India, as seen in previous orders, will remain unaffected.
However, re-export of these items – jute, woven fabrics – which are Bangladeshi goods (as per their origin) back to India from Nepal or Bhutan shall not be allowed.
“Re-export of… Bangladesh goods to India from Nepal/Bhutan shall not be allowed,” the notification said.
