India anti-dumping duty to hit hard B’desh jute sector exports

Staff Correspondent | Published: 21:46, Jan 07,2017

 
 

An Export Promotion Bureau photo shows reels of jute twine. Bangladeshi jute and jute-goods exporters on Saturday said that the Indian government’s decision of imposing anti-dumping duty on import of jute and jute products from Bangladesh would severely hit the Bangladesh’s jute business.

Bangladeshi jute and jute-goods exporters on Saturday said that the Indian government’s decision of imposing anti-dumping duty on import of jute and jute products from Bangladesh would severely hit the Bangladesh’s jute business.
The government of India on January 5 imposed anti-dumping duty ranging from $6.30 to $351.72 a tonne on import of jute and jute products from Bangladesh for the next five years.
Bangladeshi businesses expressed their worries and anger over the Indian government’s decision and urged that the decision should be reviewed to narrow the bilateral trade gap between the two countries.
Exports of jute and jute goods to India in the financial year 2015-16 grew by more than 150 per cent to $260.74 million from $104.51 million.
Of the $260.74 million, $96.68 million came from export of raw jute, $86.93 million from jute yarn and twine and $57.71 million from jute sacks and bags.
Experts said that the dumping allegation of Indian jute-sector players against Bangladesh was not justified.
‘I think a bilateral negotiation will be the best thing to resolve the issue as the dumping allegation of India is not justified,’ former interim government’s finance adviser AB Mirza Azizul Islam told New Age.
There is a provision in the World Trade Organisation rules that stipulates hearing on anti-dumping issue but the process is very long, he said.
Following an investigation conducted by the Directorate General of Anti-Dumping and Allied Duties under the India’s commerce ministry on the Indian Jute Mills Association’s allegation against Bangladesh of selling jute products at prices lower than those in India’s domestic market, the Indian government imposed the import restrictive levy on January 5.
The anti-dumping duty has been imposed on jute yarn/twine, hessian fabric and jute sacking bags.
Three years ago, local jute-sector players in India had accused Bangladeshi exporters of undercutting and suppressing the prices of the domestic industry.
In 2015, the Indian anti-dumping authority initiated a probe into the matter and the authority recommended imposition of definitive anti-dumping duty on import in order to remove injury to the domestic industry.
In its final order issued in October last year, the DGAD had come to the conclusion that there was dumping of goods and the imports were undercutting and suppressing the prices of the domestic industry.
After considering the final findings of the DGAD, the central finance ministry of India has notified the anti-dumping duty.
Bangladeshi jute and jute goods were enjoying zero-duty benefit on export to the Indian market under the South Asian Free Trade Area agreement.
Continued on B2 Col. 3India anti-dumping duty to hit hard B’desh jute sector exports
Staff Correspondent
Bangladeshi jute and jute-goods exporters on Saturday said that the Indian government’s decision of imposing anti-dumping duty on import of jute and jute products from Bangladesh would severely hit the Bangladesh’s jute business.
The government of India on January 5 imposed anti-dumping duty ranging from $6.30 to $351.72 a tonne on import of jute and jute products from Bangladesh for the next five years.
Bangladeshi businesses expressed their worries and anger over the Indian government’s decision and urged that the decision should be reviewed to narrow the bilateral trade gap between the two countries.
Exports of jute and jute goods to India in the financial year 2015-16 grew by more than 150 per cent to $260.74 million from $104.51 million.
Of the $260.74 million, $96.68 million came from export of raw jute, $86.93 million from jute yarn and twine and $57.71 million from jute sacks and bags.
Experts said that the dumping allegation of Indian jute-sector players against Bangladesh was not justified.
‘I think a bilateral negotiation will be the best thing to resolve the issue as the dumping allegation of India is not justified,’ former interim government’s finance adviser AB Mirza Azizul Islam told New Age.
There is a provision in the World Trade Organisation rules that stipulates hearing on anti-dumping issue but the process is very long, he said.
Following an investigation conducted by the Directorate General of Anti-Dumping and Allied Duties under the India’s commerce ministry on the Indian Jute Mills Association’s allegation against Bangladesh of selling jute products at prices lower than those in India’s domestic market, the Indian government imposed the import restrictive levy on January 5.
The anti-dumping duty has been imposed on jute yarn/twine, hessian fabric and jute sacking bags.
Three years ago, local jute-sector players in India had accused Bangladeshi exporters of undercutting and suppressing the prices of the domestic industry.
In 2015, the Indian anti-dumping authority initiated a probe into the matter and the authority recommended imposition of definitive anti-dumping duty on import in order to remove injury to the domestic industry.
In its final order issued in October last year, the DGAD had come to the conclusion that there was dumping of goods and the imports were undercutting and suppressing the prices of the domestic industry.
After considering the final findings of the DGAD, the central finance ministry of India has notified the anti-dumping duty.
Bangladeshi jute and jute goods were enjoying zero-duty benefit on export to the Indian market under the South Asian Free Trade Area agreement.
Abul Hossain, vice-president of the Bangladesh Jute Spinners’ Association, said that the decision of the Indian government would hit hard the jute sector in Bangladesh.
‘We won’t let go unchallenged the India’s decision of imposing anti-dumping duty on import of jute and jute goods from Bangladesh,’ he said.
Abul said that the sector leaders would sit with the jute minister today (Sunday) to find ways to overcome the situation.
‘We are worried about the imposition of anti-dumping duty by India as the decision would hamper Bangladesh’s exports,’ Md Rezaul Karim, chairman of the Shippers Council of Bangladesh, told New Age.
He said that the bilateral trade gap between Bangladesh and India would increase due to the move and the Indian government should review the decision.
Rezaul, also former president of the Bangladesh Jute Association, urged the Bangladesh government to take necessary steps so that India reviews the decision.
‘We are yet to be informed about the issue officially. Once we get the official communication, necessary steps will be taken,’ senior commerce secretary Hedayetullah Al Mamoon told New Age on Saturday.

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