DHAKA, Jan. 10 (Xinhua) -- Bangladesh businesses have expressed deep concern over India's recent anti-dumping duty on jute and jute goods exported from the neighboring country.
Jute industry insiders urged India to withdraw the anti-dumping duty on jute items which enjoyed duty-free access to India under the South Asia Free Trade Area (SAFTA) agreement.
They, however, urged the Bangladeshi government to discuss the matter with the relevant Indian ministry in the greater interests of bilateral trade between the two countries.
The Indian government reportedly on Jan. 5 imposed anti-dumping duty ranging from 6.30 U.S. dollars to 351.72 U.S. dollars per tonne on imports of jute and its products from Bangladesh and Nepal to protect domestic industry.
An official in Bangladesh's Ministry of Commerce told Xinhua Tuesday that imposition of anti-dumping duty on jute export to India is "unexpected and unfortunate."
The decision irked not merely businesses but also officials as it would affect the local jute industry severely, said the official who preferred to be unnamed.
Sector insiders said many jute spinning mills will suffer big blow due to the high duty and will ultimately be closed, leaving hundreds of thousands of workers uncertain with futures.
They stressed the need for lobbying with the Indian government to withdraw the decision.
MS Siddiqui, a legal economist, said Bangladesh usually exports jute and jute goods, yarn, twine, sacks and bags worth around 900 million U.S. dollars a year and 20 percent of Bangladesh's export to Indian market.
"The anti-dumping duty will decrease the formal export and increase smuggling to India," said Siddiqui, also immediate past president of the Bangladesh Indenting Agents Association (BIAA).
He said Bangladesh now needs to look for alternate market of jute and jute products and should try to export value added products in order to get better price.
Dhaka Chamber of Commerce & Industry (DCCI), the largest and most vibrant business chamber in Bangladesh, recently in a statement said the imposition of the duty will affect the glorious heritage of the golden fiber of Bangladesh and spur further trade imbalance, which is currently heavily tilted to India.
DCCI President Hossain Khaled said due to the anti-dumping duty, about 170 million U.S. dollars of export of Jute goods will be challenged and almost 1 billion U.S. dollars jute export market will be destabilized.
A leader of Bangladesh Jute Mills Association who did not like to be named said such duty will have ample negative impact on parties involved in jute sector in Bangladesh, India and Nepal.
He said relevant government agencies must take up the issue to Indian authorities now instead of later.
The ministry official, however, said the government through its formal channels will soon take the matter to the attention of the Indian government.
