NEW DELHI: India has imposed immediate restrictions on the import of jute and allied fibre products from Bangladesh, in a move reflecting growing tensions in bilateral trade relations. The new measures apply to all land and seaports across the country, with the sole exception of the Nhava Sheva seaport in Maharashtra, according to a notification from the Directorate General of Foreign Trade (DGFT).
The restrictions, however, will not apply to goods exported by Bangladesh to Nepal and Bhutan. At the same time, the re-export of such Bangladeshi goods from Nepal or Bhutan into India “will not be allowed,” the notification clarified.
Under the South Asian Free Trade Area (SAFTA) agreement, Bangladesh’s jute exports currently enjoy duty-free access to the Indian market. However, the Indian jute industry has long raised concerns over the adverse impact of dumped and subsidised imports, particularly of jute yarn, fibre, woven fabrics, and bags originating from Bangladesh.
“This has placed the Indian industry at a disadvantage, as there is credible evidence that Bangladeshi jute exports continue to benefit from government subsidies,” a source familiar with the matter said.
In response to these concerns, the Directorate General of Anti-Dumping and Allied Duties (DGAD) had previously conducted investigations, resulting in the imposition of anti-dumping duties (ADD) on jute and related goods from Bangladesh. However, sources noted that these duties have not significantly curbed import volumes.
In addition to subsidies, unfair trade practices employed by some Bangladeshi exporters reportedly include mislabelling, misuse of technical exemptions, routing exports through firms exempted from ADD, and “mis-declaration” to claim higher subsidies within Bangladesh.
Sources further stated, “India’s push for self-reliance under the ‘Atmanirbhar Bharat’ initiative, and the protection of rural livelihoods linked to the domestic jute industry, necessitate measures to counter the unfair trade practices used by Bangladeshi exporters.”
The government is also taking steps to ensure that exporters in Bangladesh do not circumvent the new restrictions by routing jute exports through third countries, sources added.