Gloster, Cheviot Company, Ludlow Jute: Jute stocks surge up to 5%; here is why

In the early trade, shares of Gloster jumped as much as 4.28% on the NSE, while Ludlow Jute rallied up to 5% on the BSE. Cheviot Company shares gained as much as 2.83% on the NSE.

In the latest decision, the products added to the list are bleached and unbleached woven fabrics of jute or of other textile bast fibre; twine, cordage, and rope of jute; and sacks and bags of jute.

However, a notification from the Directorate General of Foreign Trade (DGFT) allows these imports through the Nhava Sheva Seaport.

"Imports from Bangladesh shall not be allowed from any land port on the India-Bangladesh border," it said, adding, "Import of certain goods from Bangladesh to India is regulated with immediate effect."

Earlier on June 27, India prohibited imports of a number of jute products and woven fabrics from Bangladesh through all land routes. Those imports are, however, allowed only through Nhava Sheva seaport in Maharashtra.

The curbs were imposed on items such as jute products, flax tow and waste, jute and other bast fibres, jute, single flax yarn, single yarn of jute, multiple folded woven fabrics or flex, and unbleached woven fabrics of jute.

In April and May also, India had announced similar curbs on imports from Bangladesh.

On May 17, India imposed port restrictions on the import of certain goods, like ready-made garments and processed food items, from the neighbouring country.

On April 9, India withdrew the transhipment facility it had granted to Bangladesh for exporting various items to the Middle East, Europe and various other countries except Nepal and Bhutan.

These measures were announced against the backdrop of the controversial statements made by the head of Bangladesh's interim government, Muhammad Yunus, in China.

Bangladesh is a big competitor of India in the textile sector. The India-Bangladesh trade stood at $12.9 billion in 2023-24.

In 2024-25, India's exports stood at $11.46 billion, while imports were $2 billion.

A brief detail about companies

It is primarily involved in the manufacturing and exporting of jute and jute-related products. It operates through two segments: Jute Goods and Cables. The company was previously known as Kettlewell Bullen & Company Limited and is known for its wide range of jute products, including hessian cloth/bags, sacking cloth/bags, tarpaulin, and geotextiles. Gloster also produces home furnishings, floor coverings, and shopping bags.

The company manufactures and sells jute products, including yarn, fabrics, sacks, and customised products such as geotextiles and food-grade bags. It was originally incorporated in 1897 as Delta Jute Mills Company Ltd. and later became Cheviot Company Limited in 1976. The company operates in two segments: jute goods and captive power generation.

Ludlow Jute is one of India’s leading jute manufacturers. It was established in 1921 by Ludlow Corp. In 1977, it was acquired by the Kanoria family. The company's main facility is located on the banks of the Hooghly River in Chengail, near Kolkata, West Bengal. It encompasses 1.2 million square feet of factory space, employee housing, and community services on a 100-acre campus.

Beyond business, Ludlow is involved in community development initiatives, including healthcare programmes, vocational training, and educational support.