DGAD proposes 5-20% anti-dumping duty on jute imports

Aamir H Kaki

The Directorate General of Anti-Dumping and Allied Duties (DGAD), a branch of the Ministry of Commerce, has proposed an anti-dumping duty of 5%-20% on jute and jute products in order to safeguard the domestic jute industry from cheap imports. However the recommendations of the DGAD would need the approval of Ministry of Finance before the imposition.

Pankaj Agarwal, Head of Exports, Hooghly Mills Project Ltd, an importer of raw jute, spoke to the correspondent of Dollar Business.  He said, “we are happy with the recommendations of imposing anti-dumping duty as this will benefit the factories in India. Indian jute mills are getting impacted from the cheap imports and this measure will definitely benefit us.”

Agarwal further added that the local or smaller jute mills were affected in a big way due to the flooding of cheaper imported products in the market. It became difficult for domestic manufacturers to sustain the competition and had to close down.

“It is difficult for many to sustain stability, they make a lot of losses, and over a period of time the market becomes totally volatile. Now, if the anti-dumping duty is levied, at least we will have some control over the market,” Pankaj said.

When asked what impact would this measure have on the domestic industry, he said, “This will certainly benefit the domestic industry.”

Last year, the DGAD had initiated anti-dumping investigations against the imports of items including jute yarn, jute sacking bags and hessian fabrics, from Bangladesh and Nepal on a request from the Indian Jute Mills Association.