India Shuts Land Border to Bangladeshi Jute Goods

New Delhi:

The Government of India has imposed an immediate ban on the import of certain jute products and ropes from Bangladesh through all land routes, redirecting such trade exclusively through the Nhava Sheva Seaport in Maharashtra.

A notification issued by the Directorate General of Foreign Trade (DGFT) on 11 August 2025 declared that items including bleached and unbleached woven fabrics of jute or other textile bast fibres, twine, cordage, jute ropes, and sacks or bags of jute will no longer be permitted entry via any land port along the India-Bangladesh border. Instead, all such imports must be routed through the Nhava Sheva Seaport.     

The DGFT notification references the powers granted under the Foreign Trade (Development & Regulation) Act, 1992, and forms part of a series of similar measures implemented since May this year. Earlier restrictions included curbs on ready made garments and processed foods as of 17 May, and a prohibition on a wider range of jute products via land ports since 27 June.      

While the latest notification does not specify its rationale, analysts suggest that the restrictions are designed to improve quality control, protect domestic jute producers, and address broader trade imbalance concerns. They note that the redirection of imports to maritime entry may help regulate the flow more effectively.     

The provision not only intensifies trade scrutiny but also poses significant logistical challenges. Importers and exporters are expected to face higher transportation costs and longer delivery timelines as goods will need to travel by sea to Nhava Sheva, and then be transported inland.   

This marks a further escalation in bilateral tensions. Since April, India has withdrawn the transhipment facility previously granted to Bangladesh for sending goods to third countries via Indian land borders. That move greatly impacted Bangladesh’s export logistics and signalled a shift towards a firmer trade posture.   

Industry observers warn that the ripple effects will be substantial. Domestic jute mills may benefit from reduced competition, but downstream users in India could face higher input costs. For Bangladesh, the rerouting of goods through seaports threatens price competitiveness in its traditional export markets.   

The ban underscores a broader recalibration of regional trade policy. As both countries adjust to evolving geopolitical and economic undercurrents, the restriction on jute goods trade through land routes may herald deeper shifts in supply chains and market dynamics.