India Bans Land Port Imports of Jute Goods from Bangladesh, Mandates Sea Route via Nhava Sheva

In a significant escalation of trade restrictions, India has banned the import of specific jute-based goods from Bangladesh via land ports with immediate effect. The move, announced by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, requires all affected shipments to be routed exclusively through the Nhava Sheva seaport in Maharashtra.

This latest decision is being viewed as part of a broader policy framework aimed at tightening oversight over imports, ensuring quality compliance, and protecting domestic producers from competitive pricing pressures in the jute sector.

Bangladesh is a big competitor of India in the textile sector. (Representational) | NDTV

Scope of the New Restriction

The DGFT notification specifies that the ban covers a wide range of jute-based products, including bleached and unbleached woven fabrics of jute or other bast fibres, as well as twine, cordage, ropes, sacks, and bags made from jute. All imports falling under these categories can no longer enter India through any land port along the Indo–Bangladesh border. Instead, they must be shipped by sea and processed through the Jawaharlal Nehru Port Trust, more commonly known as Nhava Sheva, which is one of India’s busiest and most advanced container terminals.

The move also brings goods classified under HS codes 531090, 560890, 560790, and 630510 under the same restriction framework. This centralization at Nhava Sheva is expected to streamline customs checks and improve monitoring mechanisms.

Building on Previous Trade Actions

This ban is the latest in a series of import restrictions placed on Bangladeshi goods over the past few months. In June 2025, similar limitations were imposed on certain jute fabrics and yarns, allowing them to enter only via Nhava Sheva. In May 2025, India also introduced port restrictions on readymade garments and processed food imports from Bangladesh.

Earlier in April 2025, India withdrew its transshipment facility for Bangladeshi exports passing through Indian land routes to reach third-country destinations. The withdrawal was justified on grounds of logistical inefficiencies, delays, and rising costs, but it was also seen as a strategic move to curb indirect routing of sensitive goods.

According to a report by the Global Trade Research Initiative (GTRI), these restrictions could impact trade worth nearly US$770 million, representing about 42% of total bilateral trade between the two countries.

Strategic Role of Nhava Sheva Port

The decision to channel imports exclusively through Nhava Sheva underscores the port’s growing strategic importance. Located near Mumbai, it is India’s second-largest container port and handled over 78 million tonnes of cargo in 2023–24, equivalent to about 5.85 million TEUs. The facility is equipped with modern inspection systems, high-capacity container handling infrastructure, and advanced scanning technologies, enabling stricter compliance checks compared to smaller land ports.

By shifting jute imports from land borders to a centralized maritime entry point, authorities can more effectively enforce quality standards and prevent any circumvention of regulations through third-country routes.

Economic and Diplomatic Implications

While the DGFT’s notification does not explicitly outline the political motivations behind this step, trade analysts suggest that it is part of India’s broader economic strategy to safeguard domestic industries, especially in West Bengal and Assam, where jute cultivation is a significant livelihood source.

The policy shift is also being interpreted in the context of changing regional trade dynamics. Tensions between India and Bangladesh over tariff structures, market access, and Dhaka’s deepening trade ties with China have created an environment in which tighter import controls are seen as both an economic and strategic countermeasure.

Conclusion

India’s decision to ban land port imports of key jute goods from Bangladesh marks a turning point in the two countries’ trade relationship. By mandating a single sea-based entry route via Nhava Sheva, New Delhi is consolidating its control over sensitive imports while signalling its commitment to protecting domestic jute producers.

Although Bangladesh’s jute industry is likely to bear the brunt of this decision, the policy also reflects India’s intent to reassert regulatory oversight and align import practices with broader economic and geopolitical priorities. How this move will reshape bilateral trade patterns remains to be seen, but it is certain to add another layer of complexity to India–Bangladesh trade relations in the months ahead.

(Sources: OpIndia, NDTV, Times of India)