Image Source: Times of India
India has imposed an across-the-board prohibition on import of certain jute products and woven jute cloth from Bangladesh across all land borders, with the import being permitted only via the Nhava Sheva seaport of Mumbai. The move, by the Directorate General of Foreign Trade (DGFT) on June 27, 2025, is a serious escalation of trade restrictions when the two countries' bilateral diplomatic ties are still in decline.
Key Highlights
Ban Extent: Bangladesh's import of jute products, flax tow and waste, single and double jute yarns, woven flax fabrics, and unbleached woven jute fabrics is now banned at all India-Bangladesh land border ports.
Single Point Entry: These products can now enter India only via the Nhava Sheva port in Maharashtra, from today.
Exemptions: The ban does not cover Bangladeshi products transiting India for Bhutan and Nepal. Re-export of the products from Bangladesh to India through Bhutan or Nepal is also prohibited.
Recent Precedents: This is the third major recent trade restraint. India has banned land route imports of Bangladeshi garments and processed food in May, and in April it suspended transshipment facilities for Bangladeshi exports to third countries (except Nepal and Bhutan).
Background of Strained Relations: The steps come in the wake of inflammatory comments by Bangladesh's caretaker Prime Minister Muhammad Yunus in China and constant worries in India regarding attacks on minorities in Bangladesh. Bilateral relations have also been further strained after the removal of the previous Prime Minister Sheikh Hasina and following Bangladesh's growing perceived ties with China and Pakistan.
Economic Impact: Bangladesh, which is a strong contender in textiles, exported $2 billion worth of goods to India in 2024–25, while India exported goods worth $11.46 billion to Bangladesh. Bangladesh's jute industry will be affected the most by the new restrictions, as it is a global leader in exports.
Retaliatory Context: The action is also seen as a response to Bangladesh's recent imposition of restrictions on Indian imports of rice and yarn, and India's concern over freight space for its own exports.
This fresh curtailment follows the widening dissonance between the two South Asian neighbors, with trade and diplomatic relations coming under mounting stress.
Source: CNBC-TV18, News18, Deccan Herald, Times of India, NDTV Profit
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