India urged not to impose anti-dumping duty on Jute

Terming the Indian anti-dumping investigation on Bangladeshi jute ‘inaccurate’, speakers at a seminar yesterday asked for Indian authority to suspend the imposition of anti-dumping duty until further review study is conducted.

The seminar titled “Anti-dumping duty on imports of jute products from Bangladesh by India: Challanges and potential way out”, was organised by Dhaka Chambers of Commerce and Industry (DCCI) at a hotel in the capital.
An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges on its own home market.
Recently, the Directorate General of Anti-Dumping and Allied Duties (DGAD) under India’s commerce ministry has proposed 25-30 per cent duty on the jute imported from Bangladesh and Nepal based on an investigation outcome by DGAD.
Denying the Indian investigation outcome, Hossain Khaled, president of DCCI, said that there is no clear finding of injury caused by Bangladesh’s exported price and volume on Indian local finished producers. “There is no injury to Indian jute industry. They are not suffering losses, nor their production is falling due to import of jute goods from Bangladesh,” Khaled said.
The DCCI president said, Bangladesh’s jute comprised only 10 per cent of India’s jute market and the Indian investigation found none of the jute mills in India were shut down due to jute import from Bangladesh rather were due to other likely exogenous economic factors.
“Owing to global precarious economic situation many jute mills in Bangladesh also incurred losses in 2014-15.”
He said that the proposed anti-dumping duty up to 30 per cent on Bangladesh will challenge the sustainability of about $170 million of export of jute goods.
“Half a million of job including growers will be at stake and almost $1 billion jute export market will be destabilised.”
Hussain Khaled also said that due to supply shortage, Indian consumers will have to pay higher price for jute products which will discourage jute consumption and shrink the market of eco-friendly jute products.
Speaking on the occasion as chief guest, Commerce Minister Tofail Ahmed said the bilateral relation between India and Bangladesh is in its pinnacle now.
Unfortunately, the imposition of anti-dumping will negatively impact the long standing and deepening bilateral diplomatic relation between Bangladesh and India, he said.
“The senior secretary of my ministry is now in Delhi. He is discussing about the issue with our Indian counterparts. I hope the Indian government will immediately remove the anti-dumping duty on jute product from Bangladesh.”
Mirza Azam, state minister for Textiles and Jute Ministry, Mahbubur Rahman, pesident of International Chambers of Commerce and Industry, Bangladesh (ICC,B) and Dr Mahmudul Hassan, chairman of Bangladesh Jute Mills Corporation (BJMC), also spoke on the occasion.

India urged not to impose anti-dumping duty on Jute

Terming the Indian anti-dumping investigation on Bangladeshi jute inaccurate, speakers at a seminaryesterday asked for Indian authority to suspend the imposition of anti-dumping duty until further review study is conducted. The seminar titled Anti-dumping duty on imports of jute products from Bangladesh by India: Challanges and potential way out, was organised by Dhaka Chambers of Commerce and Industry (DCCI) at a hotel in the capital. An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges on its own home market. Recently, the Directorate General of Anti-Dumping and Allied Duties (DGAD) under Indias commerce ministry has proposed 25-30 per cent duty on the jute imported from Bangladesh and Nepal based on an investigation outcome by DGAD. Denying the Indian investigation outcome, Hossain Khaled, president of DCCI,said that there is no clear finding of injury caused by Bangladeshs exported price and volumeon Indian local finished producers. There is no injury to Indian jute industry. They are not suffering losses, nor their production is falling due to import of jute goods from Bangladesh, Khaled said. The DCCI president said, Bangladeshs jute comprised only 10 per cent of Indias jute market and the Indian investigation found none of the jute mills in India were shut down due to jute import from Bangladesh rather were due to other likely exogenous economic factors. Owing to global precarious economic situation many jute mills in Bangladesh also incurred losses in 2014-15. He said that the proposed anti-dumping duty up to 30 per cent on Bangladesh will challenge the sustainability of about $170 million of export of jute goods. Half a million of job including growers will be at stake and almost $1 billion jute export market will be destabilised. Hussain Khaled also said that due to supply shortage, Indian consumers will have to pay higher price for jute products which will discourage jute consumption and shrink the market of eco-friendly jute products. Speaking on the occasion as chief guest, Commerce Minister Tofail Ahmed said the bilateral relation between India and Bangladesh is in its pinnacle now. Unfortunately, the imposition of anti-dumping will negatively impact the long standing and deepening bilateral diplomatic relation between Bangladesh and India, he said. The senior secretary of my ministry is now in Delhi. He is discussing about the issue with our Indian counterparts. I hope the Indian government will immediately remove the anti-dumping duty on jute product from Bangladesh. Mirza Azam, state minister for Textiles and Jute Ministry, Mahbubur Rahman, pesident of International Chambers of Commerce and Industry, Bangladesh (ICC,B) and Dr Mahmudul Hassan, chairman of Bangladesh Jute Mills Corporation (BJMC), also spoke on the occasion.