The appeal, made by the Indian Jute Mills Association, argues that uninterrupted seed exports risk weakening the country’s cultivation base at a time when mills are already grappling with volatile fibre supplies, rising costs and a surge in cheaper imports. The association says the combination of curtailed raw jute availability from across the border and expanding inflows of jute products has squeezed margins and threatened employment across the sector.
In a communication to the Centre, millers contend that jute seed is a strategic agricultural input and its export should be reviewed under the prevailing circumstances. They argue that seed outflows could compromise acreage and yields in the next sowing cycle, aggravating supply uncertainty for mills that depend on consistent fibre quality. Industry representatives have also sought a review of import norms for jute bags, yarn and diversified products, citing what they describe as price undercutting that domestic units struggle to match.
Bangladesh’s policy moves on raw jute shipments have altered regional trade dynamics. Officials in Dhaka have defended restrictions as necessary to ensure adequate domestic supply for their own mills and value-added exports. The impact has been felt downstream by manufacturers elsewhere who rely on cross-border trade to balance fibre shortages during lean months. Indian millers say the restrictions have tightened availability and pushed up procurement costs, particularly for finer grades used in sacking and hessian.
The Centre has so far maintained that trade decisions must balance farmer interests, industrial needs and international obligations. Jute remains one of the few natural fibres with mandated usage in foodgrain packaging, a policy designed to support farmers and mills while promoting biodegradable alternatives to synthetics. Millers argue that this mandate is undermined when finished goods enter the market at prices they attribute to lower input costs and policy support abroad.
Data from the sector shows capacity utilisation has been uneven, with some mills operating below optimal levels amid fluctuating orders and delayed payments. Employment is a central concern: the jute industry directly supports hundreds of thousands of workers and sustains livelihoods in jute-growing regions through ancillary activities. Millers say uncertainty over raw material supply and pricing discourages investment in modernisation and diversified products, areas policymakers have long urged the industry to pursue.
Trade analysts note that jute commerce between the two neighbours has historically been sensitive to policy shifts on both sides. Bangladesh is a major producer and exporter of raw jute and value-added goods, while India is a large consumer with a significant domestic farming base. When restrictions are imposed, the effects ripple across procurement cycles, inventory management and export commitments. Calls for reciprocal measures tend to intensify during such periods, though governments typically weigh the broader diplomatic and trade consequences.
Agricultural experts caution that seed availability is critical for sustaining yields and quality. Any decision to curb exports, they say, should be accompanied by steps to ensure certified seed production, distribution and farmer incentives at home. Without such measures, restrictions alone may not deliver the intended stability and could invite informal channels that distort markets.
Within government, discussions have focused on monitoring imports under existing trade remedies and quality standards, while assessing whether safeguards are warranted to prevent injury to domestic producers. Officials have also emphasised the need to keep supply chains open for essential commodities and to avoid abrupt policy changes that could affect farmers’ incomes.