Anisul Islam Noor :
Bangladesh’s export of jute goods to India fall severely as India has been charging anti-dumping duty from January 5.
As a result, the export of natural fibre-based products to India has been affected seriously, industry insider said.
Jute is the third largest export earning sector of Bangladesh, after garments and leather, and India is one of the biggest markets for the jute-based goods.
Year on year, jute goods exports slumped 52 per cent to 6,872 tonnes in January and 37 per cent to 6,155 tonnes in February, according to data from Benapole Customs.
However, jute cloths to make sacks remain free from the purview of the anti-dumping duty as a section of importers in India are showing interest in buying these sack cloths, said a senior official of Bangladesh Jute Mills Corporation (BJMC), seeking anonymity.
Chairman of the Bangladesh Jute Spinners Association (BJSA) Mohammad Shahjahan said, “We are still exporting Jute to India, but the volume has declined to a large extent because of the duty.”
The shipment of raw jute rose following imposition of the duty, according to data from Customs and Bangladesh Jute Association (BJA).
India accounted for 17 per cent, or 1.41 lakh tonnes out of 8.25 lakh tonnes of jute goods exported in fiscal 2015-16, according to data compiled by the Department of Jute (DoJ).
Considering overall exports worth $689 million to India, the share of jute and jute goods was 37 per cent in fiscal 2015-16, according to data from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
Industry insiders said the shipment of firms that face high anti-dumping duties has fallen in India. But the mills facing low duties have not been affected much, according to operators.
As a result of decline in demand and exports to India, a number of jute millers have cut production, said Shahjahan.
But the domestic use of jute has increased as the law that mandates the use of jute bags to package cereals, including rice, is being enforced, he added.
“It has become beneficial for us. The extent of our losses has reduced,” Shahjahan said.
The Jute traders expect the anti-dumping issue to be resolved after Prime Minister Sheikh Hasina’s four-day visit to India.
