Bangladesh subsidies crippling jute industry, says Indian Jute Mills Association

Despite the current anti-dumping duty, jute exports from Bangladesh to India have been increasing, it says

May 06, 2022 08:23 pm | Updated 08:23 pm IST - Kolkata

Raw materials at a jute mill in West Bengal.

Raw materials at a jute mill in West Bengal. | Photo Credit: File photo

The Government of India is considering whether to continue anti-dumping duties against exports from Bangladesh in jute products, the Indian Jute Mills Association (IJMA) said in a press statement.

“Despite the current anti-dumping duty, jute exports from Bangladesh to India, as per Government of Bangladesh statistics, have been increasing. IJMA has contended that the industry would have been completely wiped off by now, had the GOI not imposed anti-dumping duty,” the IJMA said in the statement dated May 5. The protectionist measure of anti-dumping duty to guard domestic players was first imposed in 2017.

 According to the IJMA, the Union government seems to be evaluating possible effects of leaving the open market completely to Bangladesh and the Indian Jute Industry to develop new and innovative products and new markets.

“However, all efforts in this direction are being stymied by heavily subsidised operations of Bangladesh producers whose government is determined to see their own jute grow and prosper at the cost the neighbouring countries,” the IJMA added.

The industry body also pointed out that cash subsidies on exports by Bangladesh on yarn, sacking bag and hessian fabric have been increasing over the past few years.

The statement comes at a time when the Jute industry is reeling under crisis of shortage of raw materials. the IJMA also called for a revision of the price cap of ₹6,500 per quintal of raw jute.  Over the past few months more than a dozen of mills have closed down in West Bengal leaving 60,000 workers out of work. 

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