India Imposes New Trade Restrictions on Bangladeshi Jute Imports

In a significant move, India has imposed stringent restrictions on the import of jute and its derivatives from Bangladesh. An official from the Directorate General of Foreign Trade (DGFT) has confirmed that these restrictions, effective immediately, exclude all land ports along the India-Bangladesh border. Instead, imports are now confined to the Nhava Sheva seaport in Mumbai.

According to the DGFT notification dated June 27, these measures do not affect Bangladeshi exports to Nepal and Bhutan transiting through India. However, re-exports of these goods from Nepal or Bhutan into India will not be permitted. This follows earlier restrictions imposed on May 17, targeting Bangladeshi ready-made garments and other goods through northeastern land ports, following remarks by Bangladesh's interim chief advisor Muhammad Yunus during a visit to China, which were deemed diplomatically sensitive by India.

The May 17 decision compelled Bangladesh to reroute various exports, including garments and processed foods, sharply increasing logistics costs. Importantly, essential items like fish, LPG, and edible oils are exempt from these restrictions. The policy reflects India's stance on ensuring reciprocal trade terms, as Bangladesh has similarly restricted Indian exports. Diplomatically, officials emphasize the need for equitable trade relations and recognition from Bangladesh that mutual benefits should be prioritized over unilateral market access.

(With inputs from agencies.)