India’s anti-dumping duties threaten our jute industry

For centuries, jute has been more than a commodity for Bangladesh; it has been the “golden fibre” that has sustained rural livelihoods, powered export earnings, and shaped national identity. Yet today, this heritage industry finds itself under siege. India, once Bangladesh’s largest market for jute and jute goods, is poised to continue and potentially intensify anti-dumping duties that have already choked exports and threatened the viability of an entire sector. The Directorate General of Trade Remedies (DGTR) recently released findings from its mid-term review, concluding that Bangladeshi exporters continued to dump jute products and recommending the continuation of duties ranging from $19 to $352 per tonne. 
 
India first imposed these anti-dumping duties in 2017, later expanding their scope to include jute sacking cloth. In June 2025, following appeals from the Indian Jute Mills Association and the AP Mesta Twine Mills Association, the DGTR initiated a mid-term review to examine whether duties should be enhanced. The findings are stark: Bangladesh’s jute goods exports to India fell by 18 per cent year-on-year to 1.17 lakh tonnes in 2024-25, down from 1.43 lakh tonnes the previous year. Yet the DGTR argues that because Indian demand fell by 20 per cent while imports from Bangladesh and Nepal declined by only 13 per cent, foreign producers were gaining market share at the expense of Indian mills. This logic is as circular as it is convenient: punish the exporter for maintaining market share even as demand contracts.

Bangladesh’s jute goods exports to India fell by 18 per cent year-on-year to 1.17 lakh tonnes in 2024-25, down from 1.43 lakh tonnes the previous year. Yet the DGTR argues that because Indian demand fell by 20 per cent while imports from Bangladesh and Nepal declined by only 13 per cent, foreign producers were gaining market share at the expense of Indian mills.

The impact has been devastating. The ultimate issue influencing the debate is India’s imposition of anti-dumping duties on Bangladeshi jute products through 2027.  Exports of jute goods to India plummeted from Tk275-300 crore annually to just Tk50 crore. Benapole Land Port, which handles over 90 per cent of Bangladesh’s jute exports to India, has witnessed a sharp decline in shipments. Bangladesh’s jute exporters receive only 3 per cent for yarn and 5 per cent for hessian, and their cost of production is higher than that of their Indian counterparts. India, meanwhile, enjoys a substantial trade surplus with Bangladesh.

Bangladesh cannot afford to be passive in the face of these measures. A strategic, multi-layered approach is required, one that combines diplomacy, domestic policy, and market transformation.

Firstly, Bangladesh must vigorously contest the DGTR findings through all available channels, bilateral negotiations, WTO dispute settlement mechanisms, and coordinated action with Nepal, which faces similar duties. The Bangladesh Trade and Tariff Commission must be empowered with the technical expertise and resources to mount robust defences against such investigations. Currently, Bangladesh’s trade defence system remains reactive compared to India’s proactive approach. The government should also leverage every diplomatic opportunity from SAARC platforms to bilateral summits to press for the removal of these protectionist barriers.

Bangladesh has a powerful tool at its disposal: the Mandatory Jute Packaging Act 2010. The government has already expanded its scope from six to nineteen commodities and is considering including cement. This must be fully enforced, not merely on paper. Domestic consumption of jute bags for food grains, sugar and other essential commodities can absorb a significant portion of production, reducing export vulnerability. The proposed Tk10,000 crore special fund for jute industry expansion, like the Export Development Fund, should be tracked. Additionally, the Tk100 crore funds through the Jute Diversification Promotion Centre to revive jute bag usage is a welcome step that must be implemented with urgency. 

Bangladesh currently exports 282 types of jute goods to 118 countries. The government has rightly set an ambitious target of transforming the jute industry into a $5 billion to $7 billion export sector through modernisation and diversification. To achieve this, several initiatives are essential, such as Geographic diversification. As India is issuing anti-dumping duties aggressively, Bangladesh must aggressively pursue opportunities in Africa, the Middle East, Europe and North America, where demand for sustainable alternatives to plastic is growing exponentially. 

The revival of Bangladesh’s golden fibre ultimately depends on the ingenuity and ambition of its entrepreneurs. The jute sector has long been dominated by traditional mill owners and state-owned enterprises. It is time for a new generation of entrepreneurs to reclaim the brand. The country has the raw material, the expertise and the heritage. What it needs now is the vision to position “Made in Bangladesh” jute products as premium, sustainable and desirable. Young entrepreneurs must be encouraged to enter the sector through startups, e-commerce platforms, and innovative design-led ventures. The government should facilitate access to finance, technology and global markets.