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Jute exporters fret over Indian duty

  • Published at 01:23 am January 8th, 2017
Jute exporters fret over Indian duty
Anti-dumping duty will be applicable to jute yarn, twine (multiple folded/cabled and single), hessian fabric, and jute sacking bags. Currently, Bangladesh exports 26.24% of its total jute and jute goods to Indian market. In the last fiscal year, Bangladesh earned $919.58 million, exporting jute and jute goods, of which $241.34 million came from India. According to the Export Promotion Bureau (EPB), in the last fiscal year, Bangladesh exports to India stood at $690 million, of which $241.34 million came from jute and jute products. Meanwhile,  in the FY2015-16, Bangladesh earned $919.58 million, which was 5.88% higher compared to $868.53 million in the previous year. On January 5, the Indian government has imposed anti-dumping duty ranging from $6.30 to $351.72 per tonne on the imports of jute and its products from Bangladesh and Nepal to protect local industry. This duty will remain effective for next five year. In response to the complaint of local sector people, the Directorate General of Anti-Dumping and Allied Duties (DGAD) imposed the duty. “The performance of domestic industry has deteriorated in terms of profitability return on investments and cash flow, and injury to domestic industry has been caused by dumped imports, DGAD said in a circular issued on January 5, 2017. It also recommended imposition of definitive anti-dumping duty on the imports in “order to remove injury” to the domestic industry. “Bangladesh jute export market share in India will fall as the importers will not be eager to import due to higher price caused by anti-duping duty,” Md Rashedul Karim Munna, managing director of Creation Private Limited, a jute good manufacturer, told the Dhaka Tribune. India always does the same thing when there is better production of jute, Munna said, adding that “I am hopeful that it would cut duty when the demands will rise further.” He urged the government to include the issues in the list of discussion during Prime Minister Sheikh Hasina’s upcoming visit to India. Bangladesh will lose competitiveness in the Indian market with the local manufactures as the price would go up due to anti-dumping duty, Rafiqul Islam Chowdhury, former vice-chairman of Bangladesh Jute Goods Association, told the Dhaka Tribune. On the other hand, millers fear that their production might be hampered, which may lead to closure of manufacturing units due to low demand. However, the government thinks that it would not hurt export as a jute-export deal amounting to Tk454 crore has been signed between Bangladesh Jute Mills Corporation (BJMC) and Golden Fiber Australia Private Limited (GFAPL). “I think it would not hurt the export as we have alternative option for export market,” a high official of the Jute and Textile Ministry told the Dhaka tribune, preferring not to be named.
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