India Imposes Restrictions on Import of Jute from Bangladesh

India has imposed restrictions with immediate effect on the import of jute and allied fibre products from Bangladesh—a move that came amid increasing strain in the overall relations between the two neighbours.

- CORRESPONDENT

The new restrictions will apply to imports into India of Bangladesh's jute and allied fibre products across all land and seaports, with the exception of the Nhava Sheva seaport in Maharashtra, people familiar with the matter said on Saturday.

The government is also taking steps to ensure that the imports from Bangladesh are not re-routed through third countries, circumventing the restrictions.

Under the SAFTA provisions, jute from Bangladesh enjoys a duty-free access to India. However, the market access extended by India in good faith has been misused to hurt India's economic interests. The Indian jute industry has, for long, suffered due to the adverse impact of dumped and subsidized imports of jute products—particularly yarn, fibre and bags—from Bangladesh, the statement explained.

There is credible evidence that Bangladeshi jute exports continue to benefit from state subsidies extended by the Government of Bangladesh.