After finding sufficient “prima facie” evidence of dumping of jute products, India has started a probe to ascertain if an anti-dumping duty can be imposed on such imports from Bangladesh and Nepal to save the domestic industry.
The Directorate General of Anti-Dumping and Allied Duties (DGAD) has launched the investigation into imports from the two neighbouring countries on the request of Indian Jute Mills Association (IJMA).
The association has filed an application “for initiation of anti-dumping investigation and imposition of anti-dumping duty” on the imports of ‘jute product’ originating in or exported from Bangladesh and Nepal, the DGAD said.
The DGAD found “sufficient prima facie evidence of dumping” of the goods, injury to the domestic industry, and a causal link between the alleged dumping and injury exist to justify initiation of an anti-dumping investigation.
“The Authority therefore hereby initiates an investigation into the alleged dumping and consequent injury to the domestic industry…To determine the existence, degree and effect of the alleged dumping and to recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the ‘injury’ to the domestic industry,” the DGAD said.
The DGAD only recommends anti-dumping duty and it is the revenue department which imposes the import restrictive levy.
There are 34 producers of jute products in India who are members of the IJMA. As many as 15 Indian producers have “expressly supported” the petition and have provided injury information. Further, 14 companies have supported the petition.
Jute is a natural and an eco-friendly fiber, which comes from the inner bark of plants. The broad usages of jute include packaging, geo-textiles, protection of rooting plants, making of cloths, bags, wrapping, boot and shoe lining.
It is also used to make ropes, strings, upholstery foundation, curtains and furnishing fabrics. Jute can also be mixed with wool for fine yarn and fabric production.
Jute production is estimated at 102.84 lakh bales (180 kgs each) against the target of 110 lakh bales set for the crop year 2015-16 (July-June), as per the first advance estimate of the Agriculture Ministry.
Press Trust of India | New Delhi