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IJMA claims that Nepal is illegally exporting jute bags

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News Tech: The Indian Jute Mills Association (IJMA) alleges that Hessian jute sacks are illegally imported into India from Nepal, affecting the domestic jute industry. The Jute Mill Owners’ Organization has sent a letter to Jogbani Consolidated Management in Bihar, which borders Nepal, highlighting the alleged situation and urging immediate action. “In order to avoid actual taxation, Nepalese merchants resort to unfair trade practices by disguising ‘jute sacks’ as ‘Hessian fabric,’” he said in a letter to border authorities.

Officials in the jute industry said importing jute sacks under the guise of burlap and dumping them from Bangladesh is endangering a 1000-crore industry. In India, over 30,000 farmers and 2.5,000 workers are directly involved in the industry.

In a July 28 letter, she urged authorities to take immediate action against the practice, which is damaging the domestic jute industry and reducing government tax revenue. In a presentation to the government in April, the IJMA claimed jute imports from Bangladesh and Nepal had increased despite anti-dumping duties and called on the government to take action. IJMA said in a presentation that total imports of jute products from Nepal and Bangladesh increased from 8.8% in 2011-12 to 18.28% of domestic demand in 2020-21.

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