India is contemplating imposing an anti dumping duty on jute imports from Bangladesh and Nepal. The aim is to protect the domestic industry. Jute is a natural and an eco-friendly fiber, derived from the inner bark of the plant. Uses include: packaging, geo-textiles, protection of rooting plants, making of cloths, bags, wrappings, boots and shoe linings. It is also used to make ropes, strings, upholstery foundation, curtains and furnishing fabrics. Jute can also be mixed with wool for fine yarn and fabric production.

A subsidy of 7.5 per cent by Bangladesh for export has resulted in jute flooding the Indian market. Manufacturers in India want penal duties to be imposed on jute imported from across the border to nullify the impact of export subsidies given by Bangladesh, making its products cheaper here in the absence of import duty. The jute industry in India provides direct employment to 3.7 lakh workers and supports livelihood of 40 lakh rural families. Domestic demand dropped drastically during the Rabi marketing season 2014-15 due to higher carryover stock from the previous year.

Many states, including West Bengal, where most jute mills are located, are now increasingly plastic bags to pack agriculture produce, especially sugar. This has forced shut down of several jute mills while many others are working below capacity leading to workers’ unrest.