Bangladesh's jute industry is facing renewed uncertainty as Indian authorities appear set to continue anti-dumping duties on jute products imported from Bangladesh, despite a notable decline in export volumes in recent years.

The concern follows the release of findings from a mid-term review conducted by India's Directorate General of Trade Remedies (DGTR), which examined the effectiveness and necessity of anti-dumping duties imposed on jute goods from Bangladesh and Nepal.

According to the findings released, the DGTR concluded that Bangladeshi exporters continued to dump jute products into the Indian market, causing injury to domestic producers. The authority has indicated that the existing duties should remain in place and may even be strengthened.

India first imposed anti-dumping duties ranging from $19 to $352 per ton on jute yarn, twine, hessian fabric and jute sacking bags imported from Bangladesh and Nepal in 2017. The scope of the duties was later expanded to include jute sacking cloth from Bangladesh, significantly affecting the country's exports to what was once one of its largest markets for jute and jute goods.

The latest review was initiated in June 2025 after the Indian Jute Mills Association and the AP Mesta Twine Mills Association sought a reassessment of the existing measures and called for higher duties on imports from Bangladesh and Nepal.

As part of the review process, the DGTR requested responses from 54 jute mills in Bangladesh and 36 in Nepal. A total of 38 Bangladeshi mills and five Nepalese producers participated in the investigation.

For detailed analysis, the Indian authority selected 10 Bangladeshi producers and found that three exporters sold jute products in India at prices lower than those prevailing in their domestic market, a practice considered dumping under international trade rules.

The report stated that although demand for jute products in India declined by around 20 percent during the investigation period, imports from Bangladesh and Nepal decreased by only 13 percent. According to the DGTR, this indicates that foreign suppliers continued to gain market share despite weakening demand.

The authority further noted that Indian manufacturers had been compelled to lower their prices to compete with imported products, resulting in negligible returns on capital and financial pressure on domestic mills.

The review found significant variations in dumping margins among Bangladeshi exporters, ranging from 5 percent to 55 percent. For Nepalese producers, dumping margins were estimated between 20 percent and 30 percent.

The DGTR has invited interested parties to submit comments on its findings by June 24, 2026, before making a final recommendation to the Indian government.

Trade data cited in the report show that Bangladesh's jute goods exports to India declined by 18 percent year on year to 117,000 tons in fiscal year 2024-25 from 143,000 tons in the previous year.

Despite the decline, industry representatives in Bangladesh strongly reject allegations of dumping.

Tapash Pramanik, Chairman of the Bangladesh Jute Spinners Association (BJSA), said local exporters have repeatedly informed Indian authorities that the allegations are unfounded.

"We have informed them on many occasions, but they do not pay heed," he said.

Pramanik argued that Bangladeshi exporters receive only modest export incentives, with jute yarn exporters receiving 3 percent support and hessian exporters receiving 5 percent.

"Overall, our cost of production is higher than that of our counterparts in India," he said.

Also, India's trade surplus with Bangladesh is substantial and suggested that New Delhi could have taken a more balanced approach to the issue.

Exports of Bangladeshi jute products to India have already fallen sharply since the anti-dumping duties were introduced in 2017. The situation became more difficult after India restricted imports of several jute products and woven fabrics from Bangladesh through land ports, allowing entry only via Nhava Sheva Port in Mumbai.

Former Bangladesh Trade and Tariff Commission member Mostafa Abid Khan said the review findings suggest Indian authorities are likely to maintain or even increase anti-dumping duties despite declining import volumes from Bangladesh.

Industry leaders warn that any additional restrictions could further reduce exports and weaken the competitiveness of Bangladesh's jute sector, which remains one of the country's most important agro-based export industries.

Source: Textiletoday