United News of Bangladesh

Textiles and Jute Minister Khandakar Abdul Muktadir on Tuesday said the government aims to transform Bangladesh’s jute sector into a strong $5–7 billion industry from the current export earnings of around $1 billion through proper planning, modern technology, research, improved seed production and expansion of diversified jute products. “Although the country’s total export earnings have risen to around $50–55 billion, the contribution of the jute sector remains limited to nearly $1 billion. In this context, the government has taken timely initiatives to unlock the sector’s vast potential,” Muktadir said while inaugurating the Multi-purpose Jute Products Fair-2026 at the Jute Diversification Promotion Centre in Farmgate. The minister said around 90 percent of Bangladesh’s export earnings in fiscal year 1972-73 came from jute and jute goods following the country’s independence. “At that time, total export earnings stood at $348 million, of which the jute sector alone contributed $313 million.” Muktadir said the first priority for sustainable development of the jute sector is to achieve self-sufficiency in producing quality jute seeds. Currently, Bangladesh depends on imports to meet an annual demand of nearly 6,000 tonnes of jute seeds, he said, adding that steps would be taken to ensure domestic production of quality seeds and reduce import dependency. The minister said diversification of jute products, innovation in designs and expansion into high-value markets are essential to ensure fair prices for farmers. “To this end, investment in research, innovation and technological development will be increased.” Muktadir also said the government plans to undertake joint initiatives with leading Chinese universities to enhance productivity in the jute and leather sectors, develop improved seeds, introduce new products and create internationally competitive designs. “A comprehensive roadmap is being prepared in coordination with the Jute Diversification Promotion Centre and private sector stakeholders.” “At the same time, initiatives have been taken to bring state-owned jute mills under private management to ensure modernization, increased production and profit-oriented operations,” he said. The minister said Prime Minister Tarique Rahman is keen to restore the lost glory of the country’s jute sector. Under his leadership, the government will regularly review progress at every stage of the sector under a time-bound action plan and take necessary measures accordingly. Speaking as special guest, State Minister for Textiles and Jute Md Shariful Alam said collective efforts are needed to advance the economic and social transformation of the jute industry. “Only then will jute regain its past glory, earn huge foreign currency and improve the socio-economic condition of jute farmers and all those involved in the sector across the country.” Shariful said the revival of the sector would create new employment opportunities in both rural and urban areas. After the programme, the minister and state minister visited different stalls at the fair and exchanged views with entrepreneurs on the prospects, market expansion and existing challenges of jute products. The five-day fair will remain open to visitors every day from 10am to 9pm until May 23.  

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.” Read more: Rizwana for expanding jute-based industry for environmental protection 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.” Read more: Govt working on Tk 100-crore fund to revive jute bags: Adviser Bashir 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. Read more: Govt orders probe into irregularities in Tk 518cr Jute mill project 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. Read more: Nepal keen to import raw jute from Bangladesh: Nepalese Ambassador 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. Read more: Fire damages valuables of jute sack warehouses in Gazipur 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.