Southern States - Andhra Pradesh   

A.P. for curbs on illegal entry of jute from Nepal

By Our Staff Reporter

VISAKHAPATNAM JULY 28. The Andhra Pradesh Chief Minister, N. Chandrababu Naidu, acting on a memorandum submitted by the A.P. Jute Twine Mills Association, has requested the Union Minister for Textiles, Kanshiram Rana, and the Union Minister for Industries and Commerce, Murasoli Maran, to take steps to stop illegal entry of jute twine/yarn from Nepal to save the indigenous industry.

The association convener, G. Ch. Venkata Raju, said the Chief Minister had sought imposition of anti-dumping duty to discourage large-scale import of jute twine/yarn from Nepal as survival of the indigenous labour-intensive industry was at stake affecting the livelihood of lakhs of people in the State.

The Designated Authority in the Ministry of Commerce and Industry had recommended the imposition of definitive anti-dumping duty on all imports of acrylic yarn from Nepal.

Four companies from Punjab had filed a petition on behalf of the indigenous industry and in its final findings on anti-dumping investigations, the authority had recommended the imposition of a duty of $ 0.14 per kg on acrylic yarn exported by Nepal and $0.35 per kg anti-dumping duty for all other exporters/producers in Nepal.

A similar anti-dumping duty imposition is expected to be recommended for jute twine/yarn imports from Nepal in addition to stringent measures for curbing its illegal entry from the land-locked nation.

Mr. Venkata Raju said that the 18 jute twine manufacturing units in Andhra Pradesh had an installed capacity of 267 tonnes per day with major markets in Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Maharashtra, Gujarat and Rajasthan.

About 40,000 workers are both directly and indirectly dependent on this production capacity.

The industry in the State was facing the additional burden of Rs.300 per tonne recently imposed as purchase tax on raw jute from West Bengal, increase in cess by the Central Government from per tonne basis to ad valorem basis at one per cent on value resulting in an additional burden of Rs.150 per tonne; increase of import duty by 2.5 per cent on Bangladesh jute in the recent budget increasing burden by Rs.400 per tonne, and withdrawal of subsidy in the case of yarn exports placing a burden of Rs.500 per tonne.

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