Import Restrictions on Jute Products from Bangladesh
The Indian government has imposed additional import restrictions on jute products from Bangladesh, citing unfair subsidies that harm local industries.
Details of the Order
- Items affected include bleached and unbleached woven fabrics of jute, twine cordage and rope made of jute, and sacks and bags of jute.
- Import Route Restriction: Only allowed through Nhava Sheva seaport.
Justification for the Restriction
- Bangladesh's Export Subsidies: Claimed to be detrimental to Indian local industries
- Misuse of HS Codes: Goods misdirected under different codes to evade restrictions
- Anti-Dumping Concerns: Circumvention by combining exports with other products
Previous Measures
In June, India banned certain jute items through land ports, and a May 17 order restricted various Bangladesh goods.
- Banned Items:
- Fruits and fruit-flavored drinks
- Processed foods (baked goods, snacks, chips, confectionary)
- Cotton and cotton yarn waste
- Plastic and PVC goods (except specified items)
- Wooden furniture
- Land Port Restrictions: Assam, Meghalaya, Mizoram, Tripura, Changrabandha, Fulbari
Background and Reactions
The measures coincide with political tensions following Bangladesh's outreach to China.
- Bangladesh's Position: Second largest readymade garment manufacturer after China
- Bangladesh as a gateway for eastern India, Nepal, and Bhutan
