India reviews anti-dumping duty on jute imports from Bangladesh, Nepal

The review was initiated by India's Directorate General of Trade Remedies (DGTR), which operates under India's Ministry of Commerce, after receiving a request from the Jute Mills Association and the AP Mesta Twine Mills Association, representing domestic industry stakeholders.

According to the applicants, there is a pressing need to reassess and potentially strengthen the existing anti-dumping duties on jute imports from the two exporting countries, citing a significant decline in export prices, says Business Standard India.

They further allege that exporters are shipping volumes exceeding their installed production capacities, suggesting that jute products may be entering the Indian market through indirect channels involving third-party 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.

India 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. India's 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, says Business Standard India.

However, it is allowed only through Nhava Sheva seaport, the Directorate General of Foreign Trade (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.

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.