India to prevent B’desh from rerouting jute exports via 3rd countries

 

India is taking steps to ensure that exporters in Bangladesh do not circumvent the restrictions by routing their jute exports through third countries after India decided to impose port restrictions with immediate effect on the import of jute and allied fibre/products. These restrictions shall apply to imports into India of Bangladesh jute and allied fibre/products across all land and seaports, except the Nhava Sheva port. Imports, which stood at USD 138 million in FY 2016-17, rose to around USD 144 million in FY 2023-24. Consequently, prices of jute in India fell below Rs 5,000 per quintal in FY 2024-25, against the minimum support price (MSP) of Rs 5,335, creating a vicious payment/liquidity cycle. Additionally, the influx of underpriced finished jute goods from Bangladesh has resulted in significant under-utilisation of capacity in Indian mills, threatening their long-term viability, according to jute industry experts, as per a report.

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