Diversification of jute export destinations needed

Fearing a setback in its exports of jute to India, a major destination of the items, Bangladesh has planned to launch a campaign to explore newer markets for jute products in other countries of the world, said the Bangladesh State Minister for Textile and Jute. He told a media briefing, coinciding with the opening of Jute Diversification Promotion Center (JDPC) that “Bangladesh may face huge economic loss as India recently imposed an anti-dumping law against import of jute produces from our country”. But, the junior minister said, the government took a series of initiatives to protect Bangladesh’s jute markets that included negotiation with New Delhi to “put in our efforts to get India reverse its decision”.
According to the State Minister for Textile and Jute, Bangladesh decided to lodge an appeal against the enactment of the anti-dumping law as part of legal initiatives alongside negotiation at official and political levels. He expected that the country’s Prime Minister’s upcoming New Delhi visit could yield a positive result in reversing Indian decision which has been seen as “protectionist measure” by the next door neighbour to favour their own jute business. The junior minister said in an effort to negate the possible impact of Indian decision “we are looking for newer jute market in different African countries and Australia. To face the possible export loss, the government already has implemented the mandatory packaging law for marketing of six essential products which have ensured use of huge raw jute internally”.
Moreover, the State Minister for Textile and Jute said, the government also earmarked another 11 items which to be brought under the packaging law. Other concerned officials said Bangladesh exports around 100 thousand tones of jute goods annually to India. Officials of the ministry including Executive Director of JDPC and Chairman of Standing Committee on Export on Non-Traditional Items, among others, were present at the press conference in which the junior minister and others made such comments. India imposed the restriction as its jute goods producers alleged that Bangladeshi manufacturers got huge subsidies and dumped jute products in the Indian market.
Indian Directorate General of Anti-Dumping and Allied Duties (DGDA) has recommended imposition of a wide range of specific anti-dumping duties on three types of Bangladeshi jute products – jute yarn, jute sack and jute bag. For jute yarn, Bangladesh Exporters are likely to face anti-dumping duties between US $19 and US $162 per tone, while the amount is US $352 for per tone of jute Hessian, US $352 and amount between US $125 and US $139 for each tone of jute bags. These three jute items now enjoy duty-free access to India under the South Asia Free Trade Agreement (SAFTA).
As India has now imposed anti-dumping duty on imports of jute and jute products from Bangladesh, the government should immediately hold talks with the neighbouring country on the issue. Bangladesh must lodge an appeal against the enactment of the anti-dumping law as part of legal initiatives alongside negotiation at official and political levels. All concerned welcome the present Bangladesh government’s efforts to diversify destinations of jute exports. In fact, Bangladesh should launch a campaign to explore newer markets for jute products, to combat a setback in its exports to India, a major destination of the items. The country is expected to face huge economic loss as India recently imposed an anti-dumping law against import of jute produces from our country. It is encouraging to note here that to face the possible export loss the government already has implemented the mandatory packaging law for marketing of six essential products which have ensured use of huge raw jute internally. Moreover, the government has also earmarked another 11 items which are to be brought under the packaging law.
In addition Bangladesh should immediately take measures to manufacture diverse varieties of jute products to meet and create new markets for jute and jute products at home and abroad. All out efforts has to be made to diversify the use of jute that the country produces in abundance for consuming in the domestic market also.   
In the meanwhile Bangladesh has deplored Indian anti-dumping duty on jute products. The Bangladesh Commerce Minister has deplored the recent Indian imposition of anti-dumping duty on Bangladesh jute products, but hoped that the neighbouring country would soon remove all trade barriers to further existing ties between the two countries. The minister was quoted as saying at a meeting with the newly elected body of Dhaka Chambers of Commerce and Industries (DCCI) at his ministry that “It’s a matter of great regret that India has imposed anti-dumping duty on Bangladesh jute goods which are supposed to enjoy duty and quota frees access to it instead”.
India had provided duty and quota free access of all Bangladeshi products, except wine and tobacco, to its market earlier while it has now been imposing anti-dumping duties and realizing 12.5 percent counter veiling duties from many other products. India has always been a good and friendly neighbour and the people of Bangladesh still recall their contribution during the war of independence in 1971. The issue has been raised before New Delhi for discussions and Dhaka would again put it forward for amicable solutions, the commerce minister added. He also assured the business delegation that the present government would take all out measures to facilitate better business environment at home and abroad and would not take any measures that prevent the sectors persistent growth.
The minister encouraged the business people to continue their endeavors to bring fortunes for their families, workers and the country together. The government of India has imposed anti-dumping duty on jute products imported from Bangladesh and Nepal, ranging from US $8 to US $350 per ton on January 5, 2017. India’s finance ministry alleged that imported jute goods were suppressing domestic prices. As has been mentioned above the targeted jute products include jute yarn, sacking bags, and twine and Hessian fabric. Bangladesh jute goods marked 133.8 per cent export rise in India in 2015-2016 financial year. Nevertheless, Bangladesh has to opt for further diversification of jute products and jute export destinations to save and expedite the growth of the country’s vital jute sector in the years to come.

 The writer is a retired Professor of Economics, BCS General
Education Cadre

Diversification of jute export destinations needed

Fearing a setback in its exports of jute to India, a major destination of the items, Bangladesh has planned to launch a campaign to explore newer markets for jute products in other countries of the world, said the Bangladesh State Minister for Textile and Jute. He told a media briefing, coinciding with the opening of Jute Diversification Promotion Center (JDPC) that Bangladesh may face huge economic loss as India recently imposed an anti-dumping law against import of jute produces from our country. But, the junior minister said, the government took a series of initiatives to protect Bangladeshs jute markets that included negotiation with New Delhi to put in our efforts to get India reverse its decision. According to the State Minister for Textile and Jute, Bangladesh decided to lodge an appeal against the enactment of the anti-dumping law as part of legal initiatives alongside negotiation at official and political levels. He expected that the countrys Prime Ministers upcoming New Delhi visit could yield a positive result in reversing Indian decision which has been seen as protectionist measure by the next door neighbour to favour their own jute business. The junior minister said in an effort to negate the possible impact of Indian decision we are looking for newer jute market in different African countries and Australia. To face the possible export loss, the government already has implemented the mandatory packaging law for marketing of six essential products which have ensured use of huge raw jute internally. Moreover, the State Minister for Textile and Jute said, the government also earmarked another 11 items which to be brought under the packaging law. Other concerned officials said Bangladesh exports around 100 thousand tones of jute goods annually to India. Officials of the ministry including Executive Director of JDPC and Chairman of Standing Committee on Export on Non-Traditional Items, among others, were present at the press conference in which the junior minister and others made such comments. India imposed the restriction as its jute goods producers alleged that Bangladeshi manufacturers got huge subsidies and dumped jute products in the Indian market. Indian Directorate General of Anti-Dumping and Allied Duties (DGDA) has recommended imposition of a wide range of specific anti-dumping duties on three types of Bangladeshi jute products jute yarn, jute sack and jute bag. For jute yarn, Bangladesh Exporters are likely to face anti-dumping duties between US $19 and US $162 per tone, while the amount is US $352 for per tone of jute Hessian, US $352 and amount between US $125 and US $139 for each tone of jute bags. These three jute items now enjoy duty-free access to India under the South Asia Free Trade Agreement (SAFTA). As India has now imposed anti-dumping duty on imports of jute and jute products from Bangladesh, the government should immediately hold talks with the neighbouring country on the issue. Bangladesh must lodge an appeal against the enactment of the anti-dumping law as part of legal initiatives alongside negotiation at official and political levels. All concerned welcome the present Bangladesh governments efforts to diversify destinations of jute exports. In fact, Bangladesh should launch a campaign to explore newer markets for jute products, to combat a setback in its exports to India, a major destination of the items. The country is expected to face huge economic loss as India recently imposed an anti-dumping law against import of jute produces from our country. It is encouraging to note here that to face the possible export loss the government already has implemented the mandatory packaging law for marketing of six essential products which have ensured use of huge raw jute internally. Moreover, the government has also earmarked another 11 items which are to be brought under the packaging law. In addition Bangladesh should immediately take measures to manufacture diverse varieties of jute products to meet and create new markets for jute and jute products at home and abroad. All out efforts has to be made to diversify the use of jute that the country produces in abundance for consuming in the domestic market also. In the meanwhile Bangladesh has deplored Indian anti-dumping duty on jute products. The Bangladesh Commerce Minister has deplored the recent Indian imposition of anti-dumping duty on Bangladesh jute products, but hoped that the neighbouring country would soon remove all trade barriers to further existing ties between the two countries. The minister was quoted as saying at a meeting with the newly elected body of Dhaka Chambers of Commerce and Industries (DCCI) at his ministry that Its a matter of great regret that India has imposed anti-dumping duty on Bangladesh jute goods which are supposed to enjoy duty and quota frees access to it instead. India had provided duty and quota free access of all Bangladeshi products, except wine and tobacco, to its market earlier while it has now been imposing anti-dumping duties and realizing 12.5 percent counter veiling duties from many other products. India has always been a good and friendly neighbour and the people of Bangladesh still recall their contribution during the war of independence in 1971. The issue has been raised before New Delhi for discussions and Dhaka would again put it forward for amicable solutions, the commerce minister added. He also assured the business delegation that the present government would take all out measures to facilitate better business environment at home and abroad and would not take any measures that prevent the sectors persistent growth. The minister encouraged the business people to continue their endeavors to bring fortunes for their families, workers and the country together. The government of India has imposed anti-dumping duty on jute products imported from Bangladesh and Nepal, ranging from US $8 to US $350 per ton on January 5, 2017. Indias finance ministry alleged that imported jute goods were suppressing domestic prices. As has been mentioned above the targeted jute products include jute yarn, sacking bags, and twine and Hessian fabric. Bangladesh jute goods marked 133.8 per cent export rise in India in 2015-2016 financial year. Nevertheless, Bangladesh has to opt for further diversification of jute products and jute export destinations to save and expedite the growth of the countrys vital jute sector in the years to come. The writer is a retired Professor of Economics, BCS General Education Cadre