Bangladesh has decided to strongly protest the Indian allegation of dumping jute goods at a hearing in New Delhi early next month, officials said.
"We are sending jute goods to India at competitive prices. There is no question of dumping the items there," commerce secretary Hedayetullah Al Mamun told the FE Monday.
"In the hearing, we will place our arguments to prove that we are not exporting jute goods at low cost," he said.
Indian jute goods manufacturers have alleged that Bangladesh and Nepal are dumping the products in their country affecting the local industry.
They alleged that jute goods comprising products like jute yarn/twine (multiple folded/cabled and single), Hessian fabrics, and jute sacking bags are being sent to India from Bangladesh and Nepal at low cost which affected the local industry's competitiveness.
Responding to the allegation, the Directorate General of Anti-Dumping and Allied Duties of India has started investigating the matter. If proved, India may consider imposing anti-dumping duty on import of jute goods from Bangladesh and Nepal, trade officials said.
As part of investigation, the organisation has invited parties concerned to attend the hearing and to place written submissions of their views in the hearing.
A senior official at the ministry of commerce told the FE, India has started investigation into anti-dumping allegation without following Article 11 (A) of SAFTA rules. Under the Article 11 (A), before considering anti-dumping measures against least-developed contracting states, the countries have to be given the scope of consultation in this regard.
However, evading the SAFTA rules, India did not invite Bangladesh to consultation before launching the investigation into anti-dumping allegation.
Bangladesh had requested India to sit for consultation in this regard before launching the probe, but the latter did not honour the request, the official said.
In last fiscal year, Bangladesh exported jute and jute goods worth US$ 868 million of which only $110 million fetched from India.
In February last, New Delhi backtracked from moving forward to slap anti-subsidy or countervailing duty (CVD) on import of Bangladeshi jute goods after consultation with Dhaka.
Trade officials of the two countries had debated the issue in the Indian capital which resulted in suspending the move to start process for imposing the duty.
Bangladesh, in the consultation, explained to India the reasons and necessity for providing subsidy on jute goods export.
At present, Bangladeshi jute goods exporters get 7.5 per cent cash incentive as part of the government's move to boost overseas shipments.
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