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From an average of 80-100 goods-laden trucks entering India daily, the count plummeted to just 20-25 (on Saturday). | Photo Credit: RITU RAJ KONWAR
In a sudden sweeping move, India has imposed fresh import restrictions on key Bangladeshi products like jute, fabrics and yarns. Effective June 27, India has stopped imports of jute, woven fabrics, and yarns from Bangladesh through all land ports. Imports will be allowed only through the Nhava Sheva port in Mumbai, Maharashtra.
The fallout has been immediate and stark.
Trade at Petrapole — India’s largest and busiest land port handling bilateral commerce with Bangladesh — has nosedived, with truck movement collapsing over 70 per cent within a day.
Older data of the World Bank shows, Indian jute imports were around $92 million, while unbleached woven fabrics were around $62 million, thereby valuing the total import trade with Bangladesh at $154 million.
From an average of 80-100 goods-laden trucks entering India daily, the count plummeted to just 20-25 (on Saturday). Over 70 trucks are returning to Bangladesh mid-route (before reaching Benapole), and another 12-odd are stranded at the bay area in Benapole (Bangladesh’s corresponding border port), underlining the scale of disruption.
Post a ban on import of readymade garments earlier in May, there was a 25 per cent hit on a daily basis; and now with the jute import restriction, the hit is “expected to be severe”, exporters told businessline.
The order reached Petrapole around 20.30 hours on Friday, since when it came into effect.
“On Saturday, there was no direct trade with Bangladesh because of some strike at the Benapole side. But, in general trucks coming in have thinned to 20 – 25, apart from the 12-odd stranded ones,” said a source.
Previously, India had banned ready-made garment import through land ports (restricting it to Kolkata and Mumbai sea ports); while some FMCG and select items imports through land ports in the North East, and two West Bengal land ports – located close to the NE states - were restricted.
Petrapole bilateral trade was at ₹30,421 crore in FY24 with there being 145,280 shipments; as per data available with the Land Ports Authority of India.
The Petrapole-Benapole corridor accounts for a substantial chunk of the $16 billion India-Bangladesh trade, making this one of the most strategically sensitive and economically crucial land borders in South Asia.
Land ports – including Petrapole, Gede, Agartala, Attari, Moreh, Raxaul and Jogbni – account for majority of India – Bangladesh trade.
Bangladesh’s jute — its second-largest export to India after ready-made garments — is at the epicentre of this trade freeze.
Industry insiders say the sudden clampdown has left exporters blindsided, upending shipments worth crores and triggering fears of prolonged trade friction. In fact, nearly 1,000 – 1,200 labourers employed by the carrying and forwarding agents at Petrapole are now staring at an uncertain future.
Consequently, prices of jute in India fell below ₹5,000 per quintal for FY24-25, against the minimum support price (MSP) of ₹5,335, creating a vicious payment/liquidity cycle.
In January, India’s Cabinet Committee on Economic Affairs, approved the MSP of raw jute at ₹5,650 per quintal for 2025-26 season. The new MSP is an increase of ₹315 per quintal over the previous season 2024-25.
Sources suggest that the move is part of a larger regulatory tightening around select commodity imports, possibly driven by concerns over domestic industry protection, quality standards, or trade imbalances.
Bangladesh reportedly had been pushing jute exports, and incentivising the same, which led to artificially depressed prices in India.
The Asian nation is amongst the largest jute producers globally accounting for nearly 1.2 million tonnes of production annually. In India, West Bengal is the largest jute producer, followed by Bihar, Assam, and some other States.
“Import from Bangladesh shall not be allowed from any land port on India-Bangladesh border,” the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, said in a notification, that was “effective immediately”.
India is also taking steps to ensure that the imports from Bangladesh are not re-routed through third countries, circumventing the restrictions.
Exemptions have been granted for transit goods to Nepal and Bhutan, as seen in previous orders, offer some relief. However, re-export of these items - jute, woven fabrics - which are Bangladeshi goods (as per their origin) back to India from Nepal or Bhutan shall not be allowed.
“Re-export of… Bangladesh goods to India from Nepal/Bhutan shall not be allowed,” a DGFT notification said.
Published on June 28, 2025
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