'Not allowed from any land port': India imposes fresh restriction on jute products from Bangladesh

India has announced fresh restrictions on the import of bleached and unbleached woven fabrics of jute, twine, cordage, rope, and sacks from Bangladesh, with a move that will significantly affect trade through land ports. The Directorate General of Foreign Trade (DGFT) issued a notification on Monday stating that these products will no longer be allowed through any land ports on the India-Bangladesh border. Instead, they will only be permitted entry through the Nhava Sheva seaport.

The new restrictions are set to take immediate effect. "Imports 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 notification read.

The products affected by this new measure include bleached and unbleached woven fabrics of jute, twine, cordage, rope, cables, and sacks and bags made of jute. The move comes amid increasing trade frictions between the two neighboring countries, following similar restrictions imposed by India earlier this year on other Bangladeshi consumer goods, such as ready-made garments and plastics.

The new restrictions are seen as a response to Bangladesh's ongoing restrictions on Indian exports, particularly those crossing the land borders in the northeastern states. In May, India had already limited the entry of ready-made garments from Bangladesh to only the Kolkata and Nhava Sheva ports, excluding land transit points. This was seen as a direct reaction to Bangladesh's refusal to allow certain Indian goods to enter its territory through land ports.

Experts believe these measures are part of a broader strategy by India to address the economic challenges posed by Bangladesh's trade policies and its market access imbalance in the northeastern states. New Delhi has long argued that Bangladesh's port restrictions on Indian exports have hindered the growth of industrial sectors in its northeastern states, which face high transit charges for goods being transported through Bangladesh.

The fresh restrictions come just months after India ended a nearly five-year-old agreement for the transshipment of Bangladeshi goods to third countries via Indian ports and airports, which had been a source of tension between the two nations. Bangladesh's port restrictions on Indian goods, including rice, cotton, and yarn, escalated trade disputes, with Indian officials pointing to the unreasonably high transit charges imposed by Bangladesh as a barrier to regional economic growth.

The trade relations between India and Bangladesh soured after the flight of Prime Minister Sheikh Hasina.