India slaps duty on jute goods from Bangladesh

Staff Correspondent | Published: 13:25, Jan 07,2017 | Updated: 15:30, Jan 07,2017

 
 

The Indian government has imposed anti-dumping duty on jute products imported into the country from Bangladesh and Nepal.

The duty, ranging from $8 to $350 per tonne, would apply to varying categories of jute goods originating in Bangladesh and Nepal and dumped into India, Business Standard reported on Friday.

The duty has been notified by the Indian finance ministry on January 5, 2017, as ‘dumping’ of jute goods was suppressing the prices in the domestic industry. Due to dumping, the performance of the domestic jute industry had deteriorated in terms of profitability returns on investments and cash flow. 

Bangladesh’s commerce secretary Hedayetullah Al Mamoon said they knew the development.

He told New Age on Saturday that they would continue discussion with the government of India for reviewing the decision.

Bangladesh usually exports jute and jute goods, yarn, twine, sacks and bags worth around $900 million to many global destinations of which is 20 per cent of Bangladesh’s export to Indian market.

According to Indian finance ministry, the duty would be in force for a period of five years unless superseded or revoked and is mandated to be paid in Indian currency.

Categories of jute products to be covered under the duty are jute yarn, sacking bags, twine and Hessian fabric.

Domestic jute bag manufacturers have been affected by the dumping margin and are facing injury over exports by manufacturers in Bangladesh and Nepal. The comparison of ex-factory prices and exports from Bangladesh and Nepal shows considerable dumping margin. Industry body Indian Jute Mills Association had earlier lobbied for imposing an anti-dumping duty. IJMA had roped in Delhi-based T M Consultants to take necessary action on behalf of the industry. Based on the preliminary data from selected jute mills, the consultant found merit in taking up the ‘anti-dumping’ measure with the government.

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