Unless Bangladeshi exporters can satisfy Indian authorities by December 16, India may impose anti-dumping duty on jute goods imported from Bangladesh. An investigation into import of jute products from Bangladesh and Nepal has already been launched by the authority,Directorate General of Anti-Dumping and Allied Duties (DGAD) on request of the Indian Jute Mills Association (IJMA).

Sources say, to nullify the impact of ‘export subsidies’ given by Bangladesh, Indian manufacturers, want penal duties to be imposed on jute products imported from there, making its products cheaper in India in the absence of import duty. Some mills, including a majority belonging to IJMA, are illegally importing jute bags from Bangladesh and Nepal at a cheaper price to sell the same at higher prices to state-owned food procuring agencies, say sources. This has been discovered by the Indian Jute Commissioner, state these sources.

The DGAD has decided to conduct the investigation in response to queries and it has issued a letter, with a copy of Initiation Notification of anti-dumping duty investigation against Bangladesh jute products, to Bangladesh High Commission in Delhi on November 6 this year, as part of the investigation.

With regards import of jute products originating in or exported from Bangladesh the DGAD advised Bangladesh exporters and parties concerned to respond to the queries of DGAD. The DGAD stated they could do this through a prescribed form within 40 days of the date of issuance of the letter. Moreover, all the mills concerned were asked to respond to the Indian authorities individually replying to the information they ask for by the Bangladesh Tariff Commission after they held a meeting in this connection.