India reopens anti-dumping probe on jute imports from Bangladesh, Nepal amid price undercutting row

The review covers a wide range of jute items, including jute yarn or twine, hessian fabric, sacking bags, and sacking cloth.

India has launched a mid-term review of the anti-dumping duties it had imposed on jute products imported from Bangladesh and Nepal, the Commerce Ministry’s investigation arm said in a notification dated June 30.

The Directorate General of Trade Remedies (DGTR) said the review follows a request by the Indian Jute Mills Association and AP Mesta Twine Mills Association, who alleged that exporters from the two neighbouring countries are undercutting prices and bypassing capacity limits. They argued that a fresh investigation is needed to potentially strengthen duties and protect Indian producers.

According to the applicants, export prices of jute goods have dropped significantly, and in many cases, goods are being shipped by producers more than their installed capacity, indicating possible routing through unauthorised manufacturers. Based on this complaint and prima facie evidence, the DGTR has now begun a formal review.

“On the basis of the duly substantiated application by domestic producers… the authority hereby initiates a mid-term review,” the notification said.

The review covers a wide range of jute items, including jute yarn or twine, hessian fabric, sacking bags, and sacking cloth. The period of investigation spans April 2024 to March 2025, while the injury period includes data from the previous three financial years.

A long trail of duties and restrictions

India had first imposed anti-dumping duties on jute imports from Bangladesh and Nepal in January 2017. Later, in March 2018, it initiated an anti-circumvention probe on sackcloth. The duties were further extended in June 2019 and again in December 2022, after a sunset review by the DGTR in September 2021.

Adding to the trade friction, India on June 27, 2025, restricted the import of specific jute products and woven fabrics from Bangladesh through land routes. Imports of these goods are now only allowed through Nhava Sheva seaport, the Directorate General of Foreign Trade (DGFT) said. A month earlier, on May 17, similar port restrictions were imposed on items like garments and processed food.

Trade ties and tensions

India-Bangladesh ties appear to be under growing strain, with New Delhi expressing concerns over Dhaka’s internal policies and shifting foreign alignments. According to sources, a recent parliamentary panel flagged Bangladesh’s growing proximity with Pakistan and China, and also criticised the failure of interim chief advisor Muhammad Yunus to curb attacks on minority communities, especially Hindus.

Despite political tensions, trade continues. In FY25 so far, India’s exports to Bangladesh stood at $11.46 billion, while imports were about $2 billion, government data showed.

Jute, a natural and eco-friendly fibre extracted from plant bark, is widely used in packaging, textiles, ropes, upholstery, and even road and canal linings. India’s move to revisit the duties could impact sourcing decisions for many industries dependent on this biodegradable fibre.

(With inputs from PTI)