India has imposed new restrictions on the entry of jute and allied fibre products from Bangladesh, limiting imports to a single port — Nhava Sheva — in an effort to tighten control over what it describes as dumped and subsidised goods harming its domestic industry.
The directive, which takes immediate effect, follows longstanding complaints from India’s jute sector over alleged unfair competition from Bangladeshi exporters, despite duty-free access granted under the South Asian Free Trade Area (SAFTA) agreement.
The Indian Ministry of Commerce said the measure aims to curb the inflow of low-cost jute products, which have undercut local prices and led to the closure of several mills.
Officials cited the ineffectiveness of previous anti-dumping duties (ADD) — first imposed in 2017 — as imports from Bangladesh rose from USD 117 million in FY 2021–22 to around USD 144 million in FY 2023–24.
Authorities claim Bangladeshi exporters have exploited technical exemptions and misdeclared shipments to bypass duties, with some allegedly routing products through third countries.
The Nhava Sheva port, located near Mumbai, has been designated for exclusive import to ensure stricter quality control, including checks for hydrocarbon oil contamination.
While the Government of Bangladesh has introduced some policy adjustments, India maintains that Dhaka continues to provide export incentives — especially for value-added jute goods — which Indian stakeholders say distorts fair market competition. Raw jute, however, remains exempt from the anti-dumping framework.
India’s jute sector is centred in West Bengal, which produces nearly 80% of the country’s output and employs over 400,000 workers directly, supporting millions of rural households.
The government said the latest move aligns with its “Atmanirbhar Bharat” (self-reliant India) initiative and is necessary to protect domestic producers.
“The market access granted to Bangladesh in good faith cannot continue to be exploited at the expense of Indian farmers and mill workers,” the official statement said.
SMS/
