The Indian authorities are to impose anti-dumping duty on another Bangladeshi item, hydrogen peroxide, despite rebuttal by the Bangladesh manufacturers.
Such a measure is to be taken soon, following controversies surrounding India's imposition of similar duties on jute products in recent times.
India's concerned agency, Directorate General of Anti-Dumping and Allied Duties (DGAD), has on Tuesday issued the final determination of the measure, leading to imposition of the said duties within three months.
The anti-dumping duty applicable for Bangladeshi companies exporting hydrogen peroxide to India ranges from $28 to $91 per tonne, according to the measure. This substance is used in the textile industry.
An exporter is subjected to anti-dumping only when it sells a product in another country at a rate below the cost of production.
Bangladeshi companies denied the allegation, arguing that some Indians, too, said the exporters had not dumped the item in the Indian market.
A number of Bangladeshi companies exported hydrogen peroxide worth $5.2 million to India out of total export of the item valued at $7.7 million in the 2014-15 fiscal year.
On 14 March 2015, two Indian companies -- National Peroxide and Hindustan Organic Chemical -- applied for imposing anti-dumping duties on Bangladeshi companies' sales there.
DGAD claimed that Bangladeshi hydrogen peroxide affected their industry.
TK Group's Samuda Chemical exports hydrogen peroxide at a rate of $390 per tonne to India and if anti-dumping duty is finally imposed, its sales price would stand at $437 per tonne.
"This will hamper our exports. We've developed our industry keeping an eye on the huge Indian market. If such a measure is taken, we will face a crisis," chief financial officer of Samuda Mohammad Akramuzzaman said.
Md. Monirul Islam, deputy managing director of Tansim Chemical, another exporter, termed the likely Indian measure unjust, saying that the Indians themselves admitted during the hearing that there was no dumping. "But unfortunately, we see they are going ahead to impose the duty."
The exporters have called for resolving the matter through talks between the top level officials of the two countries.
Bangladesh has never imposed such duty to protect the local industries.
India is also likely to impose similar duties on fishing nets. More than a decade ago, Indian imposed anti-dumping duty on lead acid batteries being exported from Bangladesh.
* This report, originally published in Prothom Alo Bangla print edition, has been rewritten in English by Khawaza Main Uddin.