Domestic jute industry is at stake since low duty on imports allows huge flow of jute from Bangladesh and Nepal, complained Indian Jute Mills Association (IJMA).
Affecting Indian manufacturers negatively, jute and jute products from the two countries are overflowing Indian markets.
Moreover, IJMA lamented for the special incentives given to Bangladesh and Nepal in terms of import duty, which has created a situation wherein Indian manufacturers feel themselves underdogs.
The import duty for jute and jute products from Bangladesh and Nepal is only six percent as compared to 15 percent from other countries.
The combined import of jute products from Nepal and Bangladesh grew rapidly by 337 percent at 32,170 tons in 2004-05 from 7,350 tons in 2002-03.
Between April and November 2005-06, the import further increased by 430.5 percent at 50,240 tons as compared to 9,470 tons during the same period of the corresponding year, they pointed out.
IJMA officials also observed that the imports not only have financial perils but also carry physical hazards since the imported jute products do not comply with the environmental norms fixed by the Government.
