DCCI worried over proposed anti-dumping duty on jute

The Dhaka Chamber of Commerce and Industry yesterday expressed concern over the proposed anti-dumping duty on Bangladeshi jute and jute goods by the Indian government.

Bangladeshi jute and jute goods may be subject to 25-30 percent duty upon entry to the Indian market.

“When Bangladesh is working hard to improve and maintain a justified cross-border bilateral trade relation with India, this sort of decision is likely to be a blow to our endeavour,” the chamber said in a statement.

It urged the government to negotiate with the Indian anti-dumping authority to resolve the problem so that the export of jute and jute goods to the neighbouring country remains unhurt.

“If this proposed anti-dumping duty comes into effect, it could result in an adverse impact on our local growers, producers, exporters and spur further trade imbalance between India and Bangladesh.”

Currently, Bangladeshi jute and jute goods enjoy zero-duty benefit on export to the Indian market under the South Asian Free Trade Area agreement.

Three years ago, the Indian Jute Mills Association had accused Bangladeshi exporters -- for the first time in 40 years -- of selling jute products at prices lower than those in India's domestic market.

Then in October last year, the Indian anti-dumping authority started its investigation into the matter.

The Directorate General of Anti-Dumping and Allied Duties under India's commerce ministry has concluded its probe into the matter last week, said an official of Bangladesh Tariff Commission.

The report is likely to be disclosed next week. “There is no clear finding of injury caused by our exported price and volume on Indian local finished producers,” the DCCI said.

At present, India accounts for 20 percent of Bangladesh's jute and jute good exports. “Our 20 percent jute export to India accounts for 8 percent of entire India's local market share.”