Only Allowed via Maharashtra Seaport
India has placed a new restriction on the import of certain jute products and woven fabrics from Bangladesh through land ports. From now on, these goods can only enter India through the Nava Sheva seaport in Maharashtra.
Trade Tensions Behind the Decision
This decision was made by India’s Directorate General of Foreign Trade (DGFT) on Friday, as part of a series of steps taken amid rising tensions in trade relations between Bangladesh and India.
List of Banned Products
The ban includes nine types of products, such as:
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Raw jute fibre
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Jute yarn (including canaf, hemp, ramie)
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Different types of woven jute fabrics
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Transit Exception for Nepal and Bhutan
DGFT mentioned that this restriction won’t apply to goods that are transported through India to Nepal or Bhutan. However, Bangladeshi products can’t be rerouted through these countries to enter India either.
India is a Major Market for Bangladeshi Jute
Bangladesh is one of the world’s leading exporters of jute and jute-based fibres and yarns. India is a major destination for these exports.
According to the Observatory of Economic Complexity, in 2023, Bangladesh exported $93.6 million worth of jute and textile fibres to India. Out of this, $61.8 million came from jute yarn exports.
Third Restriction in Recent Months
This is the third time in recent months that India has imposed such restrictions on Bangladeshi exports:
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April 9: India cancelled transshipment privileges for Bangladeshi goods headed to the Middle East and Europe. Only Nepal and Bhutan were allowed continued access.
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May 17: India restricted the import of ready-made garments and processed food from Bangladesh through selected ports.
Political Tensions Add to Trade Barriers
According to a report by Times of India, the current tensions were influenced by allegations of mistreatment of religious minorities, especially Hindus, in Bangladesh.
The Indian news agency PTI reported that these topics were discussed in a recent meeting of the Indian parliamentary committee. Also raised was Bangladesh’s growing closeness with China and Pakistan, which added to India’s concern.
Bangladesh Seen as a Strong Competitor
India sees Bangladesh as a major competitor in the textile sector.
In the 2023–24 financial year, total trade between the two countries reached $12.9 billion, where:
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India exported about $11.46 billion, and
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Imported only around $2 billion from Bangladesh.
Source: BD News 24
