Bangladesh’s jute exports to India have fallen 52 per cent in January and 37 per cent in February. Reason: India has imposed an anti-dumping duty. And with a decline in demand and exports to India, a number of jute millers have cut production.

Shipments from firms that face high anti-dumping duties have fallen. But mills facing low duties have not been affected much. Jute is the third largest export earning sector of Bangladesh, after garments and leather, and India is one of the biggest markets for the fiber.

India accounted for 17 per cent of jute goods exported by Bangladesh in fiscal 2015-16. Considering overall exports to India, the share of jute and jute goods was 37 per cent in fiscal 2015-16. However, jute cloth to make sacks remain free from the purview of anti dumping duty. A section of importers in India are showing interest in buying these sack cloth. The anti-dumping duty is expected to affect consumers in India because of a rise in prices.

However, shipment of raw jute has risen following the imposition of the duty. India has justified the tariff by saying countries are undercutting and suppressing the prices of the domestic industry. The duty has been imposed for five years and applies to products such as jute yarn, hessian fabrics and jute sacks.