Manufacturing industries of Brazil have for a long time been on a crusade against the jute exporting countries. This is largely because of the fact that Brazil which is already self sufficient in the production of natural fibres is facing excessive inflow of jute made goods from countries like India and Bangladesh.
To deal with these worrying circumstances, the Government of Brazil has recently decided to take legal action against Indian exporters on account of dumping of jute yarn. Bangladesh has also been targeted on similar grounds.
Anti-dumping duty on import of jute goods from India was imposed even in 1992 for a period of five years and even before the period got over, Brazilian Government was ready with yet another anti-dumping charge.
The Jute Manufacturers Development Council (JMDC) fought against the case to successfully save the five Indian exporting companies in 2004 on grounds that export prices were higher than their domestic prices in Brazil and there was no reason for them to dump goods in Brazil. However, presently, the situation seems quite grim and Indian exporters can only hope to prevent getting unnecessarily dragged into a legal war.
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