Jute Industry Irked Over Import Restrictions On Raw Jute Through Land Ports

(MENAFN- KNN India) New Delhi, Jun 30 (KNN) Industry representatives have raised significant concerns regarding the Union commerce ministry's recent ban on raw jute imports through land ports, warning of potential adverse effects on Bengal's manufacturing sector.

The restrictions, which target various jute products and woven fabrics from Bangladesh, have prompted urgent calls for policy modification from industry stakeholders.

The Indian Jute Manufacturers' Association (IJMA), representing the sector's interests, has announced plans to approach the ministry seeking amendments to the notification.

The association aims to ensure continued import of raw jute and yarn through the Petrapole border crossing in North 24 Parganas, which serves as a critical supply route for the region's manufacturing base.

Bengal accounts for approximately 90 percent of India's jute-related manufacturing activities, making the state particularly vulnerable to supply chain disruptions.

The annual import value of jute and jute products from Bangladesh reaches approximately Rs 2,000 crore, with significant value addition occurring within Bengal before products are re-exported to international markets.

Hemant Bangur, Chairman, Gloster Ltd, one of India's leading jute companies, emphasised the economic implications of the restrictions.

He noted that redirecting imports through the Nhava Sheva sea port in Navi Mumbai would substantially increase operational costs and erode the competitive pricing advantages currently enjoyed by regional manufacturers.

Bangur suggested that import restrictions should target finished products from Bangladesh rather than raw materials, citing substantial subsidies provided by the Bangladeshi government to its domestic industry.

The comprehensive ban covers multiple categories of jute products and materials, including flax tow and waste, various jute fibers, single and multiple folded yarns, and both bleached and unbleached woven fabrics of jute and flax.

The restrictions apply specifically to imports through all land routes, with the government citing strained bilateral relations as the underlying rationale.

The industry leaders have expressed optimism that the central government will review the policy framework and implement appropriate corrective measures to address the sector's concerns while maintaining the intended policy objectives.

(KNN Bureau)

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