Once hailed as the golden fiber and the backbone of Bangladesh’s post-independence economy, jute now contributes less than 2% to the country’s total export earnings, a sharp fall from nearly 90% in the 1970s.

Despite its vast potential, Bangladesh’s jute sector continues to struggle under poor planning, outdated technology and a lack of effective policy support.

According to Export Promotion Bureau (EPB) data, export earnings from jute and jute goods have been steadily declining in recent years.

The sector earned USD 911.51 million in FY2022–23, dropping to USD 855.23 million in FY2023–24, and further down to USD 820.16 million in FY2024–25, sparking concerns over the future of what was once the country’s flagship export industry.

Years of Neglect and Policy Contradictions

Experts blame the sector’s downturn on years of neglect and inconsistent government decisions.

“The biggest problem with jute is the absence of any sustained, effective initiative,” said agronomist and University of Western Australia PhD researcher Dr Moinul Hasan Khan. “Over the decades, we’ve seen one jute mill after another shutdown. Farmers never received fair prices for raw jute, and failure to protect both mills and growers has steadily eroded our export income.”

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In 2018, the Awami League government revamped the National Jute Policy to revive the sector and enhance its global competitiveness. Yet, only two years later, the same government shut 26 state-owned jute mills down, rendering around 25,000 workers jobless overnight.

“How can a country dreaming of export growth through jute shut down all its state-owned mills? It’s one of the most self-contradictory policy decisions imaginable,” said Dr Khan.

Data from the Bangladesh Jute Mills Corporation (BJMC) show that between 1972 and 1981, the number of state-owned jute mills increased to 82. The sector, however, soon began to crumble under financial losses, mismanagement and outdated machinery.

“Working in a jute mill once meant stability and pride,” recalled Nurul Akand, former Supply Manager of the iconic Adamjee Jute Mills. “Mill workers used to earn more than employees in other factories, with better bonuses and allowances. But one by one, those benefits disappeared.”

He said although the government later leased out closed mills to private operators, production never returned to its former levels.

Habib Hossain, a former officer at Monowar Jute Mills, said most public mills relied on outdated, Pakistan-era machinery. “No training was provided to workers to produce modern jute products. Eventually, citing losses, the government decided to close the factories instead of modernizing them.”

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Currently, Bangladesh has over 200 private jute mills, which account for nearly all jute exports. However, private mill owners say they too are facing mounting challenges.

“The biggest challenge now is sourcing enough raw jute during the season,” said Tapas Pramanik, Chairman of the Bangladesh Jute Spinners Association (BJSA). “Because of hoarders, mills often can’t get adequate raw jute, which stalls production.”

Record Harvest, Farmers Under Pressure

In southern Bangladesh, particularly Faridpur district, the country’s largest jute-producing region, the area under jute cultivation reached 86,500 hectares this year, producing raw jute worth about Tk 2,000 crore, according to the Department of Agricultural Extension (DAE).

Yet farmers say they have reaped little benefit. Many had to sell their crops early at low prices, while hoarders later resold the same jute to mills at nearly double the rate.

“We borrow money for seeds, fertilizers, and labor. When loans fall due, we’re forced to sell quickly, often at minimal profit,” said Hamiduzzaman, a farmer from Salta upazila in Faridpur.

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The situation is similar in the northern districts. Farmers in Gaibandha, known for high-quality jute, said they sold raw jute at Tk 2,500–2,800 per maund during harvest season, while current market prices have soared to Tk 4,500–5,000 per maund.

“Now jute prices are high, but we have none left. Hoarders control the market and profit from our losses,” said Runu Mia, a farmer from Gaibandha.

Mill owners and traders alike point to hoarding and unregulated raw jute exports as the sector’s biggest threats.

“Hoarders are exporting raw jute abroad, depriving local mills of the raw material they need,” said Shamsul Haque Howlader, a jute trader from Nalchity upazila in Jhalakathi. “The foreign exchange earned from raw jute exports is only a fraction of what we could earn by exporting value-added jute goods.”

Business leaders warn that if hoarding and unregulated raw jute exports are not curbed soon, Bangladesh’s jute industry could face an even deeper crisis.

Both farmers and mill owners are urging the government to prioritize technological modernisation, research, and incentives for the sector. They argue that lack of proper retting (soaking) facilities and limited access to processing technology continue to hurt both productivity and quality.

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Farmers say they still rely on primitive methods, burning wood and straw to ret jute due to water shortages, while mill owners struggle with inefficient production systems.

To revive the sector’s lost glory, industry insiders have called for increased subsidies, tax relief and technological upgradation programs for both farmers and mills.

Talking about revitalising the jute industry, Jute and Textile Adviser Sk Bashir Uddin said the government wants to move forward by learning from past mistakes in the sector.

“Many unrealistic and colourful dreams were promoted about the jute industry without considering ground realities, which prevented solutions from addressing the root problems. In the past, inefficiency, incompetence, vested interests and mismanagement pushed the jute industry towards destruction,” he said.

Noting that plastic has gradually replaced jute in many areas, the adviser stressed the need for expanding the market for jute products. “To popularise jute bags, a revolving fund has been created under the climate fund involving more than 1,600 entrepreneurs.”

Regarding the closed jute mills, the Adviser said the government is in the process of gradually reviving the factories through privatisation.

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He also mentioned that the government is considering a long-term plan for the jute industry.

As Bangladesh pushes towards export diversification, analysts say reviving the jute sector, once the pride of the nation, could provide a sustainable and eco-friendly path to industrial growth, but only if the government takes consistent, forward-looking action.