India Starts Mid-Term Review Of Existing Anti-Dumping Duty On Jute Imported From Bangladesh, Nepal

India has started a mid-term review of the existing anti-dumping duty imposed on Jute products imported from Bangladesh and Nepal, according to a notification.

The review was started by the commerce ministry's arm Directorate General of Trade Remedies or DGTR following a request for the same from Jute Mills Association and AP Mesta Twine Mills Association on behalf of its members.

The applicants have submitted that there is a need to re-evaluate and enhance the anti-dumping duty levied against imports of jute from these two countries as there has been decline in the export price of these goods.

They have also stated that exports are being made by producers beyond their installed capacity, indicating routing of goods produced by other producers.

According to the DGTR notification dated June 30, the applicants have requested for initiation of mid-term review investigation concerning anti-dumping duties imposed on imports of jute products exported by these countries.

"On the basis of the duly substantiated application by the domestic producers of like article in India, and having satisfied itself, on the basis of prima facie evidence substantiating the need for a mid-term review... the authority, hereby, initiates mid-term review of the anti-dumping duties imposed on imports", it said.

The scope of the product under consideration includes jute yarn/twine, hessian fabric, sacking bag, and sacking cloth.

India has imposed anti-dumping duty on jute in January 2017. Subsequently, an anti-circumvention investigation was initiated in March 2018 on imports of Jute sacking cloth from Bangladesh.

The finance ministry extended the duty on sacking bags in June 2019.

The DGTR undertook a sunset review investigation and recommended extension of anti-dumping duty on imports of Jute products from Bangladesh and Nepal in September 2021. The ministry of finance extended the levy on December 30, 2022.

Jute is a natural and an eco-friendly fiber, which comes from the inner bark of plants. The broad usages of jute include packaging, geotextiles, making of cloths, bags, wrapping, fuse yarns, aprons, canal and motor linings, ropes, strings, upholstery foundation, curtains and furnishing fabrics.

The period of investigation for the present investigation is April 2024 to March 2025 (12 months) and the injury investigation period will cover the periods April 2021 to March 2022, April 2022 to March 2023, April 2023 to March 2024.

India on June 27 banned imports of certain jute products and woven fabrics from Bangladesh through land routes.

However, it is allowed only through Nhava Sheva seaport, the Directorate General of Foreign Trade or DGFT said in a notification.

On May 17 also, India imposed port restrictions on the import of certain goods like ready-made garments and processed food items from Bangladesh.

India-Bangladesh relations have nosedived dramatically after Muhammad Yunus, chief advisor to Bangladesh's interim government, failed to contain attacks on minorities, especially Hindus.

In 2024-25, India's exports stood at USD 11.46 billion, while imports were USD 2 billion.

Bangladesh's perceived growing proximity with Pakistan and China and the implications of India's strained ties with its eastern neighbour were also discussed at a parliamentary committee meeting on Friday, according to sources.