| 

China diplomacy behind India's curbs on Bangladesh jute?

Official justification

Indian authorities claim the ban is necessary to shield domestic producers from “unfair” trade practices, citing Bangladesh’s duty-free access under the South Asian Free Trade Area (SAFTA). Officials argue that this advantage has led to “dumped and subsidised” imports, harming Indian farmers and mills. Despite existing anti-dumping duties, imports rebounded to $*** million in FY****-**, allegedly depressing domestic jute prices below government-mandated levels and forcing production cuts. The government also alleges widespread circumvention of duties through mislabelling, technical exemptions, and round-tripping schemes. Publicly, the move is framed as protecting rural livelihoods, particularly in West Bengal—which produces ** per cent of India’s jute and aligns with the Atmanirbhar Bharat (self-reliant India) initiative. The DGFT asserts that mandating seaport entry will improve quality checks, curb fraudulent labelling, and strengthen enforcement against duty evasion facilitated by porous land borders.