Commerce Ministry arm DGAD has recommended anti-dumping duty of 5-20 per cent on jute and jute products to protect the domestic industry.
The recommendations of the Directorate General of Anti-Dumping and Allied Duties (DGAD) would require Finance Ministry's nod before the anti-dumping duty is imposed.
The DGAD had last year initiated anti-dumping investigation against imports of products comprising jute yarn/twine, hessian fabrics, jute sacking bags from Nepal and Bangladesh on the request of Indian Jute Mills Association (IJMA).
IJMA said that dumping of products was causing huge financial losses to the country's jute sector.
West Bengal is a major player in the jute industry, with 3.5-4 lakh people employed in the sector.
"Almost 16-18 jute mills have shut, rendering job losses to the tune of 30,000 and industry production is down by 20 per cent due to rampant imports at subsidised rates from Nepal and Bangladesh," IJMA Chairman Raghav Gupta said.
"We are happy with the recommendation of anti-dumping duty by the Commerce Ministry and the impact of additional duty will range around 5 to 20 per cent on the imported goods depending on products.
"The level of protection is adequate to prevent our jute industry," former IJMA chairman and jute veteran Sanjay Kajaria told PTI today.
Disclaimer: No Business Standard Journalist was involved in creation of this content
