Dhaka, Jan 10 (IANS): Bangladeshi firms have expressed deep concern over India's recent imposition of anti-dumping duty on jute and other goods exported by them.

Jute industry insiders urged India to withdraw the anti-dumping duty on jute items which hitherto enjoyed duty-free access to India under the South Asian Free Trade Area (SAFTA) agreement.

They further urged the Bangladesh government to discuss the matter with the relevant Indian ministry in the greater interest of bilateral trade. 

India on January 5 imposed anti-dumping cess ranging from $6.30 to $351.72 per tonne on imports of jute and jute products from Bangladesh and Nepal to protect domestic industry.

An official in Bangladesh's Ministry of Commerce told Xinhua on Tuesday that imposition of anti-dumping duty on jute exports to India was "unexpected and unfortunate".

The decision irked not merely businesses but also officials as it would affect the local jute industry severely, said the official requesting anonymity. 

Sector insiders said many jute spinning mills will suffer a big blow due to the high duty and will ultimately be closed, leaving hundreds of thousands of workers with an uncertain future.

They stressed the need for lobbying with the Indian government to withdraw the decision.