Bangladeshi jute exports to India slumps
Bangladeshi jute exports to India fell in both January and February this year. Year on year, jute goods exports slumped 52 % to 6872 tonnes in January and 37 % to ,155 tonnes in February, according to data from Beanpole customs, after New Delhi imposed antidumping duties on the natural fibre-based products from Bangladesh
India slapped the antidumping duty – ranging between USD 19 and USD 352 a tonne — on January 5, following which, shipments from Benapole land port, which handles over 90 % exports of jute goods.
Mohammad Shahjahan, newly elected chairman of the Bangladesh Jute Spinners Association (BJSA) said that they are still exporting to India, but the volume has declined to a large extent because of the duty. As a result of a decline in demand and exports to India, a number of jute millers have cut production.
However, shipment of raw jute rose following imposition of the duty, according to data from customs and Bangladesh Jute Association. Jute is the third largest export earning sector of Bangladesh, after garments and leather, and India is one of the biggest markets for these goods.
India accounted for 17 %, 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 USD 689 million to India, the share of jute and jute goods was 37 % in fiscal 2015-16, according to data from the Federation of Bangladesh Chambers of Commerce and Industry.
The shipment of firms that face high antidumping duties has fallen in India. But the mills facing low duties have not been affected much, according to operators.
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. It has become beneficial for them as the extent of their losses has reduced.
Shahjahan however expects the antidumping issue to be resolved after Prime Minister Sheikh Hasina’s four-day visit to India that ends today. She requested Indian Premier Narendra Modi to review the decision.
According to the Joint Statement issued on April 8, India would look into the matter.