The jute industry in the country, which is reeling under pressure due to an indefinite strike for last two weeks, has got a fresh jolt from the duty-free import of jute goods from Bangladesh.
With jute goods flooding the Indian market, the domestic jute industry fears that it would lose its competitive edge.
Indian Jute Mills Association (IJMA), the apex body of the jute industry, has advocated a ban on the duty-free import of jute goods from Bangladesh.
The association, on Tuesday, wrote to the Union textiles secretary Rita Menon, seeking her intervention on the issue. IJMA has called for an immediate ban on jute goods imports from Bangladesh and has also sought an anti-dumping duty on such goods.
Besides, the jute industry has demanded the imposition of quantitative and qualitative restrictions on such goods.
Recently, the Bangladesh government adopted measures to boost its ailing jute sector by allowing 10 per cent cash subsidy on exports and introducing the mandatory packaging of commodities in jute bags, similar to the Jute Packaging Materials Act of 1987 of India.
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Bangladesh had banned export of all varieties of raw jute, allowing its jute suppliers to cancel all outstanding contracts.
IJMA pointed out that this has deprived the Indian manufacturers of sourcing jute from Bangladesh.
The association alleged that Bangladesh, India’s prime competitor in the jute sector, is taking undue advantage over an unwarranted indefinite strike in the jute mills of West Bengal which began from December 14.
Industry estimates reveal that jute goods imports from Bangladesh have surged by over 519 per cent in the past seven years, the major part being between January 2008 and November 2009.
It was after the Government allowed duty-free imports of jute goods from January 1, 2008 that the country witnessed a deluge of Bangladesh jute goods in the local market.