India on Friday (June 27) banned the entry of specific jute products and woven fabrics from Bangladesh via land ports, Times of India reported.
The timing of these restrictions coincides with Yunus' recent proposal for a comprehensive economic plan involving Bangladesh, Nepal, Bhutan, and India's northeastern states.
Who issued the ban?
- The Directorate General of Foreign Trade (DGFT) issued a notification stating that these imports would only be permitted through the Nhava Sheva seaport.
- Indian media reported that the ban came in response to "growing tensions" with Bangladesh's interim government led by Muhammad Yunus.
Why it matters
- The move will impact a significant portion of Bangladesh's $700 million garment exports to India.
- According to Bangladesh's Export Promotion Bureau (EPB), in the 2023–24 fiscal year, Bangladesh exported goods worth $1.57 billion to India, which is 3.75% of Bangladesh's total export earnings.
- Bangladesh imported goods worth $9 billion from India in the same period.
- According to data from India's Ministry of Commerce and Industry, Bangladesh ranked 8th among India's top 10 export destinations.
- India is among Bangladesh's top 10 export destinations, but this position fluctuates.
- Asian countries are not at the top of Bangladesh's export destinations, with the export sector relying heavily on the US and European countries.
Earlier bans
- Previously, on May 17, India had restricted port access for various Bangladeshi imports, including readymade garments and processed food items.
- Restricted items included jute products, single flax yarn, single yarn of jute, multiple folded, woven fabrics or flex, and unbleached woven fabrics of jute.
- India had previously disallowed the transit of Bangladesh garments meant for third-market exports, as these goods were taking up freight space at the expense of Indian products.
What are the exemptions?
- The Directorate General of Foreign Trade's notification exempts fish, edible oil, LPG, and crushed stones from the restrictions.
How Bangladesh has responded so far
- Bangladesh recently imposed restrictions on Indian yarn and rice imports.
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