India's anti-dumping duty on jute import 'adversely impacts' trade with Bangladesh

By Samara Ashrat*
Will the proposed Comprehensive Economic Partnership Agreement between India of Bangladesh be a comprehensive economic framework and an instrument to optimize the advantages of their strategic geographical landscape?

Bangladesh is crafting strategies to start negotiations with India on the long-awaited CEPA. Indian high commissioner to Bangladesh Pranay Verma, too, recently said CEPA could be a game-changer for both the countries in terms of trade.

However, concerns remain.
The imposition of anti-dumping duties on jute goods has had a negative impact on Bangladesh’s exports to India, as the country’s export items were already limited. Such a duty has a negative impact on our exports of jute goods as we exported more than 1.45 lakh tonnes of jute goods to the Indian market earlier. After the imposition of anti-dumping duty, the exports of the items have fallen to about 35,000 tonnes.
India is of the view that a dual policy has been implemented in the import of jute and jute products from Bangladesh for the benefit of the Indian jute mills. On the other hand, Bangladesh demanded withdrawal of this dual policy or the imposition of additional duty tax on the import of raw jute from Bangladesh.

According to the notification of the Indian Finance Ministry, signed on December 30, the anti-dumping duty will be effective for the next five years. The duty is required to be paid in Indian currency. The new announcement imposes different rates of anti-dumping duty on jute products exported from Bangladesh till 2027.

According to the sources in the Ministry of Finance of India, under to the new policy, the duty of 6 dollars 3 cents to 351 dollars 72 cents per ton will be applied on the jute products of Bangladesh and Nepal.
The private jute mill owners of Bangladesh have expressed their disappointment at this decision of India. They say, as a result of this new decision, there will be another crisis in the export of jute products from Bangladesh to India.

This may lead to closure of some more jute mills. India's jute exports will face a major threat due to the extension of the new anti-dumping duty. For the last five years, exports to India have been falling due to the imposition of tariffs. Now if we extend the term again we will lose the market completely.
Nearly 60 percent of the jute products exported from Bangladesh go to India. Since the imposition of anti-dumping duties in 2017, exports have started to decline. Many private jute mills were closed due to this.
Additionally, the decision may also affect the livelihoods of jute farmers, as well as workers in the jute manufacturing industry in Bangladesh, which relies heavily on the Indian market for its exports.

It may be ideal if the issue can be resolved through diplomatic or bilateral means before taking the matter to the WTO

It is also worth noting that this decision by India could also prompt other countries to impose similar measures, further exacerbating the negative impacts on the Bangladeshi jute industry. Also, despite India and Bangladesh considering each other as important and closest neighbours, the trade gap between the two countries will widening significantly.
In FY 2021-22, Bangladesh imported commodities worth US$14.58 billion from India, while its exports to that country were valued at only US$1.8 billion. In the fiscal year 2020-21, the figures were US$9.69 billion (import) and US$1.09 billion (export) respectively.

What remedial measures can be undertaken?

As a member of the World Trade Organization (WTO), any country can challenge the imposition of anti-dumping measures through the Dispute Settlement Understanding (DSU) mechanism. This allows for the raising of all issues related to compliance with the

Anti-Dumping Agreement’s requirements before a panel established under the DSU. Considering the close relationship between Bangladesh and India, it may be ideal if the issues can be resolved through diplomatic or bilateral means before taking the matter to the WTO.

The commerce ministry was planning to impose restrictions on raw jute exports to India last year after India did not withdraw anti-dumping duties despite repeated requests. In this, an initiative was taken to determine the minimum export price for the export of raw jute. But that decision was not taken because of the high price of jute and the fear of loss to the local farmers.

The author

The Government of India has not taken any initiative even though the request has been made from the higher level to withdraw this duty. Only jute raw materials are exempted from this duty. Because the entrepreneurs of the jute sector of Bangladesh supply a part of the raw material required by the Indian mills.

Due to this duty, the cost of exporting jute products in India has increased, the country's jute industry is losing Indian buyers due to the high cost of importing the product. As a result, the export of jute products from Bangladesh to India is decreasing. many mills are now closed due to lack of orders and limited production is going on in some places.
---
*PhD fellow, International Relations, University of Bucharest

Comments

Academics urge Azim Premji University to drop FIR against Student Reading Circle

By A Representative A group of academics and civil society members has issued an open letter to the leadership of Azim Premji University expressing concern over the filing of a police complaint that led to an FIR against a student-run reading circle following a recent incident of violence on campus. The signatories state that they hold the university in high regard for its commitment to constitutional values, critical inquiry and ethical public engagement, and argue that it is precisely because of this reputation that the present development is troubling.

Was Netaji forced to alter face, die in obscurity in USSR in 1975? Was he so meek?

By Rajiv Shah This should sound almost hilarious. Not only did Subhas Chandra Bose not die in a plane crash in Taipei, nor was he the mysterious Gumnami Baba who reportedly passed away on 16 September 1985 in Ayodhya, but we are now told that he actually died in 1975—date unknown—“in oblivion” somewhere in the former Soviet Union. Which city? Moscow? No one seems to know.

UAPA action against Telangana activist: Criminalising legitimate democratic activity?

By A Representative The National Investigation Agency's Hyderabad branch has issued notices to more than ten individuals in Telangana in connection with FIR No. RC-04/2025. Those served include activists, former student leaders, civil rights advocates, poets, writers, retired schoolteachers, and local leaders associated with the Communist Party of India (CPI) and the Indian National Congress.

Asbestos contamination in children’s products highlights global oversight gaps

By A Representative A commentary published by the International Ban Asbestos Secretariat (IBAS) has drawn attention to the challenges governments face in responding effectively to global public-health risks. In an article written by Laurie Kazan-Allen and published on March 5, 2026, the author examines how the discovery of asbestos contamination in children’s play products has raised questions about regulatory oversight and international product safety. The article opens by reflecting on lessons from the COVID-19 pandemic, noting that governments in several countries were slow to respond to early warning signs of the crisis. Referring to the experience of the United Kingdom, the author writes that delays in implementing protective measures contributed to “232,112 recorded deaths and over a million people suffering from long Covid.” The commentary uses this example to illustrate what it describes as the dangers of underestimating emerging threats. Attention then turns...

Aligning too closely with U.S., allies, India’s silence on IRIS Dena raises troubling questions

By Vidya Bhushan Rawat* The reported sinking of the Iranian ship IRIS Dena in the Indian Ocean near Sri Lanka raises troubling questions about international norms and the credibility of the so-called rule-based order. If indeed the vessel was attacked by the American Navy while returning from a joint exercise in Visakhapatnam, it would represent a serious breach of trust and a violation of the principles that govern such cooperative engagements. Warships participating in these exercises are generally not armed for combat; they are meant to symbolize solidarity and friendship. The incident, therefore, is not only shocking but also deeply ironic.

The kitchen as prison: A feminist elegy for domestic slavery

By Garima Srivastava* Kumar Ambuj stands as one of the most incisive voices in contemporary Hindi poetry. His work, stripped of ornamentation, speaks directly to the lived realities of India’s marginalized—women, the rural poor, and those crushed under invisible forms of violence. His celebrated poem “Women Who Cook” (Khānā Banātī Striyāṃ) is not merely about food preparation; it is a searing indictment of patriarchal domestic structures that reduce women’s existence to endless, unpaid labour.

India’s foreign policy at crossroads: Cost of silence in the face of aggression

By Venkatesh Narayanan, Sandeep Pandey The widely anticipated yet unprovoked attack on Iran on March 1 by the United States and Israel has drawn sharp criticism from several quarters around the world. Reports indicate that the strikes have resulted in significant civilian casualties, including 165 elementary school girls, 20 female volleyball players, and many other civilians.

India’s green energy push faces talent crunch amidst record growth at 16% CAGR

By Jag Jivan* A new study by a top consulting firm has found that India’s cleantech sector is entering a decisive growth phase, with strong policy backing, record capacity additions and surging investor interest, but facing mounting pressure on talent supply and rising compensation costs .

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Search This Blog