The Indian government has given a big shock to Bangladesh, taking a big decision between the growing trade tension between India and Bangladesh (India-Bangladesh Trade Tension). Under this, imports of jute and related fiber products from Bangladesh have been banned with immediate effect on most routes. However, the entry of Bangladeshi jute will continue to be permission from Nhawa Sheva Port in only one Maharashtra. This step has been taken by the government in view of curbing unfair trade and safety of domestic jute industry.
Import ban from all land routes in the country
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce, issued this order late on Friday night. According to PTI, under this decision, all land routes and ports across the country have been included, leaving Nhawa Sheva except Bangladeshi jute products effectively. It is worth noting that under the South Asian Free Trade Zone (SAFTA), Bangladeshi Jute had a long time duty free access in Indian markets.
Why did India take this decision?
According to the officials related to this case, jute products from Bangladesh, especially yarn, fiber dumped and subsidized imports were adversely affecting the Indian jute sector. He said that along with protecting the interests of the domestic jute industry, it has been decided to ban all land routes and ports in India except Nhawa Sheva in India to curb the unfair trade strategy adopted by Bangladeshi exporters who dumped this way.
Bangladeshi exporters were taking great advantage
This ban imposed by India on Bangladesh has been imposed amid growing trade tension between the two countries. According to officials, despite the installation of anti-dumping (add), Bangladeshi exporters continued to take advantage of all the flaws. The PTI report quoted another officer as saying that the purpose of new restrictions and rules is to streamlin the quality check and to prevent fraudulent labeling as well as end the prolonged misconduct in this industry.
India also showed strictness in April
Let us know that this decision taken by India is the second big step taken to target Bangladeshi trade in recent months. Earlier in April, the government withdrew an important transmission facility, under which Bangladesh was allowed to send export goods to third countries through Indian land customs stations and ports.
Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), while talking to Business Today, said that Bangladesh has banned import of many things from India, in response India has adopted a balanced approach. We have not banned any imports from them, but we wanted to give them a teaser. We said that they cannot come through the ground and if you want to come by ship, then come by sea. Everything can come, nothing has been stopped.