India to review duties to curb subsidized jute imports from Bangladesh
₹5,359 million in the 2022-23 financial year despite anti-dumping duty (ADD) on imports of jute yarn, twine, sacking bags and hessian fabric being in place since 2017. Dumping happens when goods are exported at prices lower than the cost of production and shipment.
The primary reason for this increase in import is that Bangladesh has circumvented ADD measures by exporting jute sacking cloth instead of jute sacking bag, which is not covered by the Indian ADD measure. Further, Hessian jute bags, commonly known as gunnysacks, are also being smuggled into India from Nepal.
India is one of the largest importers of jute and its products from Bangladesh, a country that provides a cash subsidy of 12% as export incentive on Hessian sacks and ‘carpet backing clothing’ (CBC); 7% incentive on jute fibres including yarn and twine; and 20% subsidy on jute diversified products including food grade bags and clothes. “India's Jute industry is facing a looming threat of being labelled a sunset industry.
Jute mills in Bengal and eastern India have reduced the production of jute products due to high procurement cost and decreasing demand, which in turn has affected the entire jute ecosystem, from farmers, traders to transporters," the official said. “The non-compliance of JPMA (Jute Packaging Materials Act), 1987 by the sugar industry to use jute bags for packaging of at least 20% of sugar production, has aggravated the situation for the industry." The price of jute sacking bags, mainly used to pack foodgrains, has declined 5% year-on-year to Rs.95,489 per tonne in last December from Rs.
100,749 a tonne. The price of jute sacking bags in fair price shops has remained unchanged since 2016, despite a tariff commission report on jute bags, the
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