Blitz Bureau
NEW DELHI: India on June 28 decided to impose port restrictions, with immediate effect, on the import of jute and allied fibre products from Bangladesh to check influx of cheap, subsidised imports from neighbouring country which have depressed prices, hurt farmers’ incomes, and led to under utilised capacity in Indian jute mills leading to closures and unemployment. These restrictions will apply to imports into India of Bangladesh jute and allied fibre products across all land and seaports, with the exception of the Nhava Sheva seaport, according to an official statement.
The restrictions aim to counter unfair trade practices, promote Atmanirbhar Bharat, and protect rural livelihoods tied to India’s domestic jute economy. 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. In response to these concerns, the Directorate General of Anti-Dumping and Allied Duties (DGAD) conducted detailed investigations and imposed Anti-Dumping Duty (ADD) on jute goods originating from Bangladesh.
