Bangladesh wants India to scrap anti-dumping duty on jute imports. As a result of the duty a fifth of the Bangladesh’s yearly jute exports are at stake. India accounts for 20 per cent of Bangladesh's jute goods exports. India was probably prompted by a desire to cushion its local jute industry from regional competition.

Three years ago, Indian jute mills had accused Bangladeshi exporters -- for the first time in 40 years -- of selling jute products at prices lower than those in India's domestic market. Of the total $919 million worth jute and jute goods Bangladesh exported in 2015-16, exports of $260 million were sent to India. Usually, the anti-dumping duty on a product is the same amount by which it undercuts the domestically manufactured product. The prices of jute yarn in Indian market tend to be comparatively low.

Bangladesh’s jute sector, which involves about 40 lakh farmers and about two lakh workers, processes more than nine lakh tons of raw jute. The country currently has 26 jute mills. Jute is one of the most affordable natural fibers and considered second only to cotton in the amount produced and the variety of uses of vegetable fibers.