Production at 23 private jute mills in Khulna region will be suspended from Sunday due to an acute shortage of raw jute.
The crisis was created after excessive rainfall disrupted jute cultivation in Shariatpur, Madaripur and Gopalganj, resulting in lower-than-expected output, jute mill owners said.
To protect domestic mills, the government imposed a ban on jute exports from September 8 but millers say the restriction has failed to stabilise supplies.
According to the Jute Mill Owners Association, mills are struggling to maintain normal operations as raw jute has become scarce and prices in local markets have surged abnormally.
The association has decided to shut down production at 23 mills in Khulna from Sunday.
Millers said excessive rainfall during May and June hampered jute production in the southern region.
Although the jute season began on July 1, the expected inflow of jute did not reach major trading hubs in Daulatpur, Khulna and Narayanganj.
The situation worsened after India imposed a ban on jute export to protect its farmers, leaving Khulna-based exporters in trouble, it said.
Taking advantage of the supply crunch, traders allegedly hoarded jute illegally in local markets. With no export opportunities, jute prices rose sharply in markets such as Chuknagar, Kapilmuni, Terokhada, Jhaudanga, Tala, Kalaroa and Parulia, further limiting mills’ ability to procure raw materials.
Mills set to halt production include Daulatpur Jute Mill, Khalishpur Jute Mill, Star Jute Mill, Sagar Jute, Jute Textile, Joy Jute, Habib Agro Jute, Ayan Jute, Jessore Jute, Nomani Jute, Ohab Jute, Faruk Jute, Web Jute, Super Jute, FR Jute, Quality Jute and Yasin Jute, among others.
In a letter to the government, the association said raw material shortages are pushing mills toward operational disruption while abnormal price hikes driven by middlemen have created an artificial crisis.
Bangladesh Jute Spinners Association (BJSA) chairman Tapas Pramanik said hoarders are controlling the market and warned that prices could rise further due to manipulation by exporters.
Sarjit Sarkar, acting assistant director of the Jute Department in Khulna, said raw jute is currently selling at Tk 4,800 to Tk 5,000 per maund in southern markets, though prices fell by about Tk 200 per maund on Wednesday.
He added that farmers typically have no stocks at home during this time of the year.
Meanwhile, Mongla Custom House Assistant Commissioner Lopa Saha said in a letter sent to relevant departments on January 20 that no jute exports were recorded from Mongla Port in the 2025–26 fiscal year.