The Hindu Business Line : Brazil pares dumping duty on Indian jute imports

THE jute industry has finally succeeded in reducing the anti-dumping duty imposed by Brazil on import of jute goods from India after a legal battle lasting for seven years.

This was announced by Mr A.K. Bal, Secretary of Jute Manufacturers' Development Council (JMDC), at a press conference here on Monday. The anti-dumping duty had been reduced to 27.8 per cent from 38.9 per cent, he said.

Brazil is an attractive market for Indian jute exporters. There is a huge potential for exporting food-grade jute bags for cocoa and coffee producers. The market is as big as 25,000 tonnes. Global cocoa and coffee producers have already prescribed compulsory usage of these jute bags.

JMDC, which operates under the Union Textile Ministry, is the official export promotion council of the Indian jute industry. Earlier, it succeeded in winning a patent case against an UK-based company, GEOHESS, which patented jute hessian cloth for covering dumping grounds.

JMDC won this case in 2002. When GEOHESS appealed against the decision, its plea was turned down on the ground that the company merely combined the knowledge flowing in from known documents.

In another significant development, JMDC has signed MoUs with the National Rural Roads Development Agency (NRRDA) and Central Road Research Institute (CRRI) for the use of jute geo-textiles in rural road development on an experimental basis.

Mr Bal said a huge market would open up for the jute industry if the use of jute geo-textiles in rural roads was approved.

"An investment of Rs 60,000 crore is being made for the development of rural roads. If only 10 per cent of this demand can be clinched by jute geo-textiles, there would be a demand for 2,00,000 tonnes. In financial terms, the amount would be more than Rs 500 crore," he said. Regarding exports, Mr Bal said the value had crossed Rs 1,000 crore during 2003-04.