India imposes land sea port curbs on jute from bangladesh

India imposes land sea port curbs on jute from bangladesh

The order will not affect Bangladesh’s exports to Nepal and Bhutan, but re-exports of the same from Nepal and Bhutan to India won’t be allowed.

Weeks after imposing land ports restrictions to apparel exports from Bangladesh, India has ordered Jute from Bangladesh will not be allowed to enter India through land ports on India-Bangladesh border. A notification to that effect was issued on Friday by the Directorate General of Foreign Trade informing that the restrictions will apply “across all land and seaports” with the exception of the Nhava Sheva seaport in Mumbai.

Official sources informed that the port restrictions on “jute and allied fibre/products from Bangladesh” had been implemented with immediate effect.

“Jute from Bangladesh enjoys a duty free access to India. However, the Indian jute industry has, for long, suffered due to the adverse impact of dumped and subsidised imports of jute products — particularly yarn, fibre and bags — from Bangladesh,” said an official source explaining the reason behind the imposition of entry ban on jute from Bangladesh.

India had imposed anti-dumping duties (ADD) on jute from Bangladesh but that did not reduce jute imports from Bangladesh due to continued subsidies by the Government of Bangladesh, said sources.

Sources further said India has been raising its concerns on jute before the authorities in Dhaka but Bangladesh only made “nominal adjustments” and continues to incentivise exports particularly in cases of “value-added jute products”. Jute is produced in West Bengal, Bihar, Assam, Odisha, Andhra Pradesh, Tripura, and Meghalaya and jute industry employs around four lakh workers in organised mills and diversified units. “Artificially depressed prices caused by subsidised imports have had a direct and adverse impact on the income of jute farmers.”

Friday’s order includes flax tow and waste (including yarn waste and garneted stock), jute and other textile bast fibers, single yarn of jute or of other textile bast fibers, woven fabrics or flax, unbleached woven fabrics of jute or of other textile bast fibers. The order will not affect Bangladesh’s exports to Nepal and Bhutan but re-exports of the same from Nepal and Bhutan to India will not be allowed.

“Bangladesh must not be allowed to persist with unfair trade practices that harm the livelihood of Indian farmers and mill workers in a sector that forms the economic backbone of dependent rural regions. The market access extended by India in good faith cannot be undermined to the detriment of India’s economic interests,” said an official while explaining the decision on land ports restrictions on jute from Bangladesh.

The Hindu was told that India will ensure that Bangladesh will not be able to access India’s jute market via third countries, circumventing the restrictions.