Indian jute mills call for halt on seed exports to Bangladesh amid industry strain

India’s jute manufacturing sector has urged the Centre to impose an immediate ban on the export of jute seeds to Bangladesh and tighten controls on jute goods imports, citing growing distress across the domestic industry following supply disruptions from the neighbouring country.

In a letter addressed to Union Textiles Minister Giriraj Singh, the Indian Jute Mills Association (IJMA) said Bangladesh’s decision to restrict exports of raw jute from September 8 has severely impacted Indian mills, which depend heavily on cross-border supplies for processing.

According to the association, the curbs have led to a sharp shortage of raw jute in India, pushing prices sharply higher and placing significant financial pressure on mills already operating on thin margins. The situation, it warned, threatens the viability of the jute value chain and the livelihoods of lakhs of workers linked to the sector.

The IJMA also flagged what it described as a trade imbalance. While Bangladesh has restricted the supply of raw jute to India, it continues to source high-yielding variety (HYV) jute seeds almost exclusively from Indian producers. These seeds are used to manufacture finished jute products in Bangladesh, which are then shipped back to India at competitive prices, undercutting domestic manufacturers, the association said.

The continued export of HYV jute seeds has also reduced their availability for Indian farmers, raising concerns over future crop output and domestic self-reliance in jute production. The association argued that jute seeds should be treated as a strategic agricultural input and protected in the national interest.

To stabilise the sector, the millers have called for a complete ban on jute seed exports—particularly HYV seeds—and stricter regulation of jute goods imports through a licensing mechanism overseen by the Office of the Jute Commissioner.

The proposed measures, the association said, are essential to protect farmers, support domestic manufacturers, and ensure the long-term sustainability of India’s jute industry until Bangladesh restores normal exports of raw jute.