In a protectionist measure, the 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.
The anti-dumping duty has been notified by the central 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.
According to the notification by the finance ministry, the anti-dumping duty would be in force for a period of five years unless superseded or revoked and is mandated to be paid in Indian currency.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 (IJMA) 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.
Based on the concerns of the jute industry, the designated authority, the Directorate of Anti Dumping & Allied Duties, had recommended the anti-dumping duty on October 22, 2016, on jute goods imported from Bangladesh and Nepal.