India imposes port restrictions on jute imports from Bangladesh

The Government of India has announced immediate port restrictions on jute and allied fibre products imported from Bangladesh, allowing entry solely through the Nhava Sheva seaport.

The move comes as part of efforts to curb the negative impact of dumped and subsidised imports on the Indian jute industry, a statement by the Indian government confirmed.

Under the South Asian Free Trade Area (SAFTA) agreement, Bangladeshi jute products currently enjoy duty-free access to the Indian market.

However, the Indian jute industry has long complained of unfair competition from Bangladesh, citing ongoing subsidies and dumping practices that have suppressed domestic prices and led to under-utilisation of production capacity.

Investigations by the Directorate General of Anti-Dumping and Allied Duties (DGAD) led to the imposition of anti-dumping duties (ADD) on Bangladeshi jute products in 2017. Despite this, the effectiveness of the measure has been limited. Imports have risen from USD 117 million in FY 2021–22 to approximately USD 144 million in FY 2023–24. Technical exemptions and alleged misdeclaration have allowed large Bangladeshi exporters to bypass restrictions, undermining domestic pricing and forcing several Indian mills to close.

The new port restrictions aim to tighten regulatory control and enforce quality checks, especially for hydrocarbon oil contamination. Officials say the Nhava Sheva port will allow more effective monitoring of imports and help eliminate mislabelling and fraudulent routing of jute goods.

The Indian government has also signalled its intent to block attempts by Bangladeshi exporters to circumvent the ban by routing shipments through third countries.

While acknowledging minor adjustments by the Bangladesh government, India maintains that Dhaka continues to offer export incentives, particularly for value-added jute products. Notably, raw jute remains outside the purview of existing anti-dumping measures, leaving Indian farmers exposed to dumped imports.

The Indian jute sector plays a vital role in rural economies, particularly in West Bengal, which accounts for 78% of the country’s jute output. The industry provides direct employment to over 400,000 workers and supports the livelihoods of lakhs of farm families.

In the statement, the government reaffirmed its commitment to the “Atmanirbhar Bharat” initiative and said that protecting the interests of domestic producers is crucial for ensuring long-term economic stability in rural India.

“The market access granted to Bangladesh in good faith cannot continue to be exploited at the expense of Indian farmers and mill workers,” the statement concluded.