Bangladesh has protested the imposition of non-tariff (NT) barriers on the sale of its jute bags in India. It has approached the Ministry of External Affairs (MEA), requesting the ministry to allow it to obtain a level playing with Indian jute goods through the lifting of the barrier which includes the mandatory labeling of its jute goods as ‘Made in Bangladesh’ which are to be sold in the Indian market.
Bangladesh has alleged that the Indian jute bags entering its markets do not carry such labels and no such compulsory requirement has been made by the Bangladesh government.
The Government of India had also imposed a second NT barrier by issuing the jute batching oil order which said that jute bags entering the Indian market should not carry oil content (non-halogenated hydrocarbon) of more than three per cent.
It was found that jute bags entering the Indian markets from Bangladesh have oil content greater than six per cent. The labeling and batch oil NT barriers were imposed in 2001.
Bangladesh has complained that the NT barrier of compulsory labeling is resulting in a loss as its production costs have gone up by three per cent and has rendered its products uncompetitive in the Indian markets, thereby negatively affecting its exports.