Home Business Pvt millers call for tax on raw jute exports

Pvt millers call for tax on raw jute exports

Indian anti-dumping duty

Private jute millers have requested the government to impose duty on exports of raw jute so that India is forced to review its anti-dumping duty on import of jute goods from Bangladesh. In a letter to the ministry of textiles and jute on Tuesday, they said that if the government imposes duty on raw jute exports, the neighbouring country may review its anti-dumping duty on jute goods imported from Bangladesh. They suggested that the government impose duty worth US$ 352 a tonne on raw jute exports from Bangladesh. In January 2017, the finance ministry of India slapped the anti-dumping duty ranging from US $19 to $ 351.72 a tonne on the import of jute goods for five years from Bangladesh. After the imposition of anti-dumping duty, the jute milers saw a decline in exports of jute goods. Many units are now at risk of closure, they said. Despite repeated request from the jute ministry, the Indian authoritys did not reconsider their decision, said Muhammad Shams-uz Zoha, chairman of the BJMA. He believed that since the demand for Bangladeshi raw jute is higher in India, the neighbouring country did not impose any anti-dumping duty on Bangladeshi raw jute. “So the government can impose duty on the exports of raw jute to create pressure on the Indian authorities so that they can review the anti-dumping duty,” Mr Zoha added. Secretary of the BJMA Abdul Barik Khan said that overall exports of jute goods have slumped more than 50 per cent after the imposition of anti-dumping duty. He also said given the big trade gap between Bangladesh and India, New Delhi can consider withdrawing the anti-dumping duty on Bangladeshi jute goods, he added. Meanwhile, Bangladesh has decided to request the Indian government to review the anti-dumping duty formally. Bangladesh Tariff Commission (BTC) has already asked 26 private jute goods exporters affected by the anti-dumping duty to provide necessary information by today (Thursday). According to the Bangladesh Jute Spinners Association (BJSA), the shipment of jute yarn dropped to 74,000 tonnes in the fiscal year 2016-17 from 100,000 tonnes a year ago. Bangladesh exports 25 to 30 per cent of its exportable jute goods to India, with BJMC having the largest share in exports. The country also imports about 1.0 million bales of raw jute from Bangladesh Bangladesh’s imports from India were valued at $6.16 billion in FY 2016-17, while its exports stood at $672.40 million, the central bank data showed.

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