The country's jute industry is in a shambles. Increased imports, fluctuating government sector demand and rising operational costs have created serious problems. The Indian Jute Mills Association (IJMA) has taken up the matter with the Union Textile Ministry and sought a review of anti-dumping duty.
The association recently sent a letter to the Ministry seeking a probe into the countervailing subsidies (CVD) provided by the Bangladeshi government and a review of the anti-dumping duty (ADD) on jute products from Bangladesh and Nepal.
Bangladesh and Nepal continue to hold a substantial 55 per cent share of the non-government jute goods market, which is valued at Rs 3,500 crore despite the existing anti-dumping duties. This situation has aggravated the industry's difficulties, the letter noted.
It said that the association has filed an application for an interim review of the ADD and also urged the ministry to initiate anti-subsidy investigations. The IJMA pointed out that contrary to reports, the Bangladeshi government has increased subsidies on diversified jute products, allowing producers in the neighbouring country to claim higher export subsidies.
These subsidies, it said, are in direct violation of Annexure VII of the Agreement on Subsidies and Countervailing Measures (ASCM), which mandates that Least Developed Countries (LDCs) like Bangladesh phase out export subsidies for products that have achieved export competitiveness.
"Bangladesh has maintained export competitiveness in jute products for over two years, warranting a phased removal of these subsidies," IJMA said in its complaint. The association warned that these subsidies not only increase the financial burden on the Bangladeshi government but severely harm the Indian jute industry.
The IJMA emphasised that invoking anti-subsidy measures would benefit both countries by creating a level playing field for the Indian industry while alleviating the subsidy burden on the Bangladeshi government, especially as the neighbouring country prepares to graduate from the LDC list.
