Nepal wants India to roll back duty on imported jute products

Nepal's output is facing a decline as the only significant outlet for its products remains India

The heavily export-dependent jute mill industry in Nepal wants India to withdraw the recently imposed countervailing duty (CVD) of 12.5% on sacking bags and hessian cloth imports. Both the country’s Foreign Trade Association and Nepal Jute Mills Association (NJMA) say the duty goes against the spirit of long-standing understanding that New Delhi will treat the industry of the two countries on equal footing. Moreover, the CVD goes against the spirit of South Asian Free Trade Area agreement, they argue.

Nepal mill officials maintain that while the giant Indian industry in recent years had produced more than 1.6 million tonnes (mt) of