India recently updated its anti-dumping and countervailing duty measures on Bangladeshi jute products, marking another challenge for Bangladesh’s jute industry. The latest review, announced in October 2026, exempts some jute mills from anti-dumping duties on specific products, while imposing a $445 per tonne duty on yarn from producers not included in India’s list of 36 named firms. Shortly after, India’s trade remedies authority recommended countervailing duties of up to $140 per tonne, which could apply in addition to existing anti-dumping measures.

India originally imposed duties on Bangladeshi jute in 2017, citing concerns about dumping and unfair subsidies that allegedly harmed its domestic producers. In this most recent investigation, Indian officials sampled 10 Bangladeshi producers and found three selling their products below domestic market prices, with undercutting margins ranging between 5 and 55 percent. Indian authorities argue that the reduced imports from Bangladesh correlate with a 20 percent drop in overall domestic demand, indicating that foreign suppliers have increased their market presence. Conversely, the Bangladesh Jute Spinners Association (BJSA) maintains that higher production costs in Bangladesh, coupled with existing duties, have already eroded exports significantly.

Bangladeshi industry representatives contend that countervailing duties are inconsistent with the General Agreement on Tariffs and Trade (GATT) provisions, which generally prohibit imposing subsidy-based duties on products already subject to anti-dumping tariffs. Indian officials counter that their method avoids double counting subsidies. Regardless, even a favorable outcome for Bangladesh would only postpone the immediate challenge. Notably, jute exports from Bangladesh to India dropped 18 percent in the fiscal year 2024-25, declining from 143,000 tonnes to 117,000 tonnes before the latest tariff changes.

Trade restrictions have also affected logistics; last year, India limited entry of certain Bangladeshi jute products to the Nhava Sheva port in Mumbai, signaling tightening control over import channels. While India remains Bangladesh’s largest jute market, it is no longer the sole destination. According to Bangladesh’s textiles and jute minister, the sector exported to 138 countries during the 2024-25 fiscal year. However, the entire jute sector has experienced a contraction in recent years. Export earnings fell from $1.16 billion in 2020-21 to approximately $820 million in 2024-25, before a partial recovery to $883.7 million in the subsequent year driven mainly by higher prices rather than increased volumes.

Jute yarn accounts for the majority of exports, generating $545.8 million in 2025-26 revenue despite a 2 percent drop in volume. Diversified jute products—which include items beyond raw jute, yarn, and sacks—earned $74.4 million, a decline of 11 percent. India asserts that Bangladeshi and Indian jute goods are interchangeable, emphasizing price competition. Notably, India’s countervailing duty recommendations exclude certain diversified products like floor coverings, shopping bags, and geotextiles, which Bangladesh has identified as growth areas.

Looking ahead, Bangladesh’s government aims to raise jute export earnings to $2 billion within five years. Experts emphasize that focusing solely on yarn production will be insufficient to achieve this goal. Research projects that the global jute market will grow approximately 6 percent annually through 2034, but capturing that growth requires investment in product design, testing, certification, and non-export dependent support structures. Bangladesh’s room for providing subsidies, particularly cash grants tied to shipments, faces constraints as the country prepares for least-developed country graduation under World Trade Organization rules.

Market diversification is a key priority. While Bangladesh’s export footprint spans many countries, its presence in established and emerging markets needs strengthening through strategic outreach, buyer relationship development, and adherence to international quality standards. Some new markets have shown growth, but even long-standing buyers such as the European Union are exhibiting softness due to factors like increased energy costs impacting discretionary spending.

From a compliance perspective, India requested cost data from 54 Bangladeshi mills, receiving responses from 38. Firm-specific duties range from zero up to $59 per tonne, whereas mills outside the approved list face the $445 levy. This process highlights the need for Bangladeshi producers to maintain transparent, auditable cost and pricing records to prepare for future reviews. Trade associations are encouraged to support smaller mills in meeting these requirements.

Nepal, which also faces Indian duties in a related review with estimated margins of 20 to 30 percent, shares concerns with Bangladesh regarding the application of these trade remedies. Both countries could potentially coordinate their approach in ongoing diplomatic and legal engagements with Indian authorities.

For years, Bangladesh’s jute sector has found itself reacting to external investigations and tariff adjustments. The most recent measures reaffirm the shrinking nature of its core Indian market. While demand for jute endures globally, the sector’s future growth hinges on moving beyond yarn production toward diversified, value-added products and expanding into diversified markets.