Given the restrictions imposed on jute yarn and jute fibre imports from Bangladesh, Jute Shippers Council has urged the Centre to include Cochin Port besides Nhava Sheva in the list of permitted ports for such shipments.

Cochin Port, with its excellent connectivity to coir and jute processing clusters, is ideally positioned to facilitate these imports seamlessly and cost-effectively. Allowing imports through Cochin Port will reduce transit time and costs for MSME units in southern India and support the Government’s vision of promoting value-added exports from the southern region, said Arjun Mahadevan, president of Jute Shippers Council.

In a representation to the Union Commerce Minister, Piyush Goyal, the Council pointed out that restricting imports exclusively through Nhava Sheva places a heavy logistical and financial burden on exporters. Transporting jute from Dhaka to Nhava Sheva by sea and then trucking it to Kerala would result in substantial freight costs and delays, extending lead times by 30–40 days. Besides, Bangladeshi suppliers are likely to increase prices by ₹5–6 per kg due to the higher costs of routing shipments via Nhava Sheva.

Sustaining jobs

These restrictions, according to the Council, have resulted in significant unintended consequences for exporters in Kerala and Tamil Nadu who source Bangladeshi jute yarn through dealers in Kolkata and add considerable value through processes such as dyeing and weaving to produce high-quality jute carpets. This value-addition not only generates substantial export revenue but also sustains critical employment, particularly for women workers in these regions, Arjun Mahadevan said.

The Indian jute mills currently do not supply the grade of jute yarn required by these exporters. The domestically available yarn does not meet the technical specifications essential for manufacturing premium-grade jute carpets. The Central government is already procuring jute gunny bags and sacking at ₹1,10,000 per tonne from these mills, they are unable to meet the requirements of exporters in Kerala and Panipat.

If exporters are compelled to source jute yarn from Kolkata mills, prices would rise by 20–30 per cent, reaching ₹125–₹130 per kg, while product quality would also decline. This would severely impact the competitiveness of India’s jute carpet exports, he added.

The Council also requested the Government to consider permitting sealed containers to move directly by land from Dhaka to exporters’ premises in Kerala, or to a container freight station in Kochi, to be opened under customs supervision before clearance.

Published on June 30, 2025