India to extend anti-dumping duties on jute imports amid rising trade tensions with Bangladesh

The long-standing trade tension in the jute sector is expected to intensify as Indian authorities move to maintain, and potentially escalate, anti-dumping duties on jute imports from Bangladesh. Findings from a recent mid-term review by the Directorate General of Trade Remedies (DGTR) suggest, despite a cooling in import volumes, persistent dumping continue to negatively impact Indian mills. Having analyzed data from FY24-25, the investigation identified dumping margins ranging from 5 to 55 per cent among sampled Bangladeshi exporters, further undermining the competitive standing of local producers who have faced negligible capital returns due to price undercutting.

This development follows a period of rigorous scrutiny initiated in June 2025 at the behest of the Indian Jute Mills Association. Already burdened by port restrictions that limit imports solely to the Nhava Sheva seaport, the sector now faces the prospect of higher levies on products including jute yarn, twine, hessian fabric, and sacking bags. While Bangladeshi industry leaders, such as the Bangladesh Jute Spinners Association, dispute these findings arguing that their higher production costs preclude unfair pricing, the DGTR maintains, foreign suppliers have disproportionately captured market share during a period of low demand.

The jute industry is a critical agro-based sector focused on manufacturing eco-friendly natural fiber products like yarn, twine, and sacks. It supports large-scale employment and remains a vital export category for regional textile economies. Recent growth strategies emphasize modernization, though profitability is currently pressured by ongoing trade protectionism and shifting global logistics.