India has imposed fresh restrictions on the import of jute and its related products from Bangladesh, limiting their entry only through the Nhava Sheva seaport in Mumbai. The move, announced by the Directorate General of Foreign Trade (DGFT), comes into effect immediately and applies to a wide range of jute derivatives.

As per the DGFT notification dated June 27, the restricted items include flax tow and waste (including yarn waste and garnetted stock); raw or retted jute and other bast fibres; single flax yarn and single or multiple-folded yarns of jute or other bast fibres; as well as various woven fabrics of flax and jute. Imports of these goods will no longer be permitted via any of the land ports along the India-Bangladesh border.

However, the directive exempts Bangladeshi exports transiting through India en route to Nepal and Bhutan. That said, any attempt to re-export these items back into India from those countries will not be allowed, according to DGFT.

This latest restriction follows India's earlier trade curbs announced on May 17, which limited the import of Bangladeshi ready-made garments (RMG) and several other products through northeastern land ports in Assam, Meghalaya, Tripura, Mizoram, and West Bengal (Fulbari and Changrabandha). These steps were introduced in the wake of controversial remarks made by Bangladesh's interim Chief Adviser Muhammad Yunus during a visit to China. Yunus had referred to India's northeastern states as a "landlocked region with no access to the ocean", a comment that sparked diplomatic unease in New Delhi.

Indian officials viewed the statement as undermining the strategic importance of the northeast and its growing connectivity infrastructure. The subsequent rerouting of exports from Bangladesh through Kolkata and Nhava Sheva has led to increased logistics costs for exporters.

Despite the recent curbs, India continues to allow unhindered import of essential items such as fish, liquefied petroleum gas (LPG), edible oils, and crushed stone. Transit routes for goods moving from Bangladesh to Nepal and Bhutan also remain unaffected.

Government sources have described these measures as a step toward rebalancing the bilateral trade relationship. While India had traditionally offered unrestricted access to Bangladeshi exports, it noted that Bangladesh imposed trade restrictions on Indian exports, particularly yarn and rice, and increased inspection requirements at its borders.

“The relationship with Bangladesh will now be on reciprocal terms,” sources said, adding that India’s northeastern states cannot be treated as captive markets for Bangladeshi exports while India faces trade restrictions in return.

By limiting imports from Bangladesh to only two ports—Nhava Sheva and Kolkata—India signals a shift toward a more balanced and mutually respectful trade arrangement.