Indian anti-dumping duties put Nepal’s jute industry under pressure

India is the biggest market for jute products manufactured in Nepal. But Nepali manufacturers now face higher charges to sell their products in the very market on which they depend most. India’s decision to increase anti-dumping duties on Nepali jute products has added to the pressure on the industry, particularly in eastern Nepal, where most of the country’s jute mills are based.

Anti-dumping duties are additional tariffs imposed to protect a country’s domestic industries from imports sold at prices below their normal market value or production costs. Such duties can be levied when a foreign company is found to be selling goods at artificially low prices to gain an unfair advantage in another country’s market. This practice is known as dumping.

India has increased the duties on Nepali jute products under this provision. According to a notification issued by India's Ministry of Finance on September 24, 2026, anti-dumping duties on hessian fabric, jute bags and jute yarn and twine have been set at different rates depending on the product and manufacturer.