Loading...
The Financial Express

Delhi rejects Dhaka's plea for lifting anti-dumping duties

After jute, more items face blows


SYFUL ISLAM | Published: January 25, 2020 10:48:44 | Updated: January 25, 2020 17:16:02


Delhi rejects Dhaka's plea for lifting anti-dumping duties

India has turned down a Bangladesh's request to withdraw anti-dumping duty imposed on the exports of Bangladesh's jute goods, hydrogen peroxide, and fishing net.

The giant neighbour made the refusal at the commerce secretary-level meeting held recently in New Delhi.

Officials at the ministry of commerce told the FE India slapped the anti-dumping duty on Bangladesh's jute yarn, hessian, and bags back in January 2017 ranging from $19 and $352 a tonne.

A similar duty was imposed on the exports of hydrogen peroxide to India, in the range of $27.81-$91.47 per tonne on April 2017. Hydrogen peroxide is a textile chemical, which is being produced in Bangladesh.

One year later, India put anti-dumping duty, at $2.69 per kilogramme, on the shipments of fishing net from Bangladesh.

Indian businesses alleged Bangladesh is exporting such goods at much lower prices than the production costs.

This has put the Indian manufacturers on a tight spot. Failing to face tough competition from Bangladesh's exporters, some of them are losing market, they said.

Bangladeshi exporters denied the allegation and have long been requesting the Indian authority to lift the duty, which is adversely affecting exports to India.

In the meeting, the Indian side reiterated that anti-dumping investigations are carried out by its Directorate General of Trade Remedies, or DGTR, through quasi-judicial proceedings.

Therefore, there is little scope for intervention of the government in the process, they said.

However, the officials said, a review would be carried out as per law if Bangladesh makes a formal appeal.

The imposition of the anti-dumping duty has dealt a serious blow to exports to India.

Exports of the items have declined sharply since India slapped the anti-dumping duty and the trend is continuing, according to officials.

A senior commerce ministry official told the FE said that India was one of the major markets for Bangladeshi jute goods.

"Since exports of jute goods to India are facing setback, the overall exports of the items declined during last fiscal year," he said.

During fiscal year 2018-19, jute and jute goods exports dived to $816.27 million from $1.085 billion a year earlier.

syful-islam@outlook.com

Share if you like