India Shuts Land Trade for Jute, Goods

India bans import of jute, other items via land routes amid strained Bangladesh ties: 

India on Friday tightened trade restrictions on Bangladesh, announcing a ban on imports of certain jute products and woven fabrics through all land routes, citing strained relations between the two countries.These measures were announced in the context of the controversial statements made by Muhammad Yunus, the head of Bangladesh's interim government, in China.

Land route ban on Bangladeshi products

Under the new directive from the Directorate General of Foreign Trade (DGFT), imports will be allowed only through the Nhava Sheva seaport in Maharashtra, PTI reported.

The goods under these curbs include jute products, flax tow and waste, jute and other bast fibres, jute, single flax yarn, single yarn of jute, multiple folded, woven fabrics or flex, and unbleached woven fabrics of jute.

This effectively closes all land border crossings for these specific goods, a significant disruption for cross-border trade.Such port restrictions will not apply to Bangladeshi goods transiting through India to Nepal and Bhutan, it added.

Re-exports not allowed

The DGFT further said re-exports of these products from Bangladesh to India through Nepal and Bhutan will not be allowed.

"Import from Bangladesh shall not be allowed from any land port on the India-Bangladesh border. However, it is allowed only through the Nhava Sheva seaport," the DGFT said, adding that "imports of certain goods from Bangladesh to India are regulated with immediate effect". On May 17, India imposed port restrictions on the import of certain goods like readymade garments and processed food items, from the neighbouring country.

On April 9, India withdrew the transhipment facility it had granted to Bangladesh for exporting various items to the Middle East, Europe and various other countries except Nepal and Bhutan, the news agency reported.

Strained cross-border relations

The new measures were announced after Yunus' comments that irked New Delhi. They also drew sharp reactions from political leaders across party lines in India.India-Bangladesh relations have deteriorated after Yunus failed to contain attacks on minorities, especially Hindus

Economic impact

Bangladesh is a big competitor of India in the textile sector. The India-Bangladesh trade stood at $12.9 billion in 2023-24.In 2024-25, India's exports stood at $11.46 billion, while imports were $2 billion.

Bangladesh's perceived growing closeness with Pakistan and China and the implications of India's strained ties with its eastern neighbour were also discussed at a parliamentary committee meeting on Friday, according to the news agency.

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