India bans import of jute, other items via land routes

By Admin

28 Jun, 2025

In a significant move aimed at tightening trade controls, India has announced a ban on the import of several jute and textile-related items from Bangladesh through all land routes. This directive, issued by the Directorate General of Foreign Trade (DGFT), will have far-reaching implications for cross-border trade, especially for traders and manufacturers relying heavily on land transportation between the two countries.

Land Route Ban: What It Means

Effective immediately, the import of jute products, flax tow and waste, jute and other bast fibres, single and multiple yarns of jute or flax, woven fabrics of flax, and unbleached woven jute fabrics will only be permitted through the Nhava Sheva seaport in Maharashtra. This move essentially shuts down all land border crossings for these goods, disrupting long-standing logistics and supply chain channels.

Exceptions to the Rule

However, the restriction carries a few critical exceptions. Bangladeshi goods transiting through India for final delivery in Nepal or Bhutan will not be affected. The DGFT has clarified that such port restrictions do not apply to transit cargo. At the same time, re-exports of these restricted products from Bangladesh to India via Nepal or Bhutan will be prohibited.

Not an Isolated Decision

This latest directive is part of a broader trend. India had already imposed similar trade restrictions in recent months. On May 17, port restrictions were enforced on readymade garments and processed food items from Bangladesh. Earlier, on April 9, India withdrew the transhipment facility it had granted Bangladesh for exporting goods to the Middle East, Europe, and other destinations except Nepal and Bhutan.

The Bigger Picture: India-Bangladesh Trade Relations

India and Bangladesh have a complex trade relationship marked by competition, particularly in the textile sector. Bangladesh has emerged as a strong competitor in global textile markets, putting pressure on Indian manufacturers. The bilateral trade stood at $12.9 billion in 2023–24, with India’s exports totaling $11.46 billion and imports from Bangladesh amounting to $2 billion.

Final Thoughts

The recent import ban underscores India’s strategic shift in handling cross-border trade, especially with regional competitors. While it protects domestic industries and streamlines trade through fewer checkpoints, it also adds logistical challenges for small and medium enterprises dependent on land route imports. As the regional trade landscape evolves, businesses will need to adapt swiftly to policy changes and diversify their supply chain strategies.