Jute
From backbone to decline; Bangladesh’s jute exports plunge
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Despite its vast potential, Bangladesh’s jute sector continues to struggle under poor planning, outdated technology and a lack of effective policy support.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 The sector, however, soon began to crumble under financial losses, mismanagement and outdated machinery.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.”
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.
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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.
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.
3 days ago
FAO keen to help Bangladesh boost jute market, says official
Director of the South-South and Triangular Cooperation Division at the UN Food and Agriculture Organization (FAO) headquarters, Anping Ye, on Wednesday held a meeting with Commerce Adviser Sheikh Bashiruddin at his office in the Secretariat.
During the meeting, they discussed FAO’s ongoing operations in Bangladesh, along with strategies for enhancing seed production, diversifying markets for jute products, and building capacity in the sector.
The commerce adviser said Bangladesh has a deep cultural, historical, and economic connection with jute and jute goods.
Jute, the golden fibre, was once the backbone of our economy, and even today it holds significant importance, Bangladesh aims to reclaim the golden past of jute and position itself as a global hub for eco-friendly products, he added.
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The adviser also said to achieve this, coordinated efforts in research, investment, and marketing from both public and private sectors are essential. FAO’s support can play a vital role in accelerating this process.
In response, FAO Director Anping Ye said Bangladesh is a key country for jute products, and FAO is interested in helping expand the global market for Bangladeshi jute.
He noted that FAO has already set up an office in the country to support agricultural development, employing over 200 personnel — most of them local. He assured FAO’s cooperation in enhancing capacity for jute production and market expansion.
Textiles and Jute Secretary Md Abdur Rouf and FAO Representative in Bangladesh Xiaojun Shi were also present at the meeting.
5 months ago
Govt to formulate action plan to double jute export in next 2-3 yrs
Textiles and Jute Minister Jahangir Kabir Nanak has said the government will formulate and implement an action plan to double the export income from jute goods in the next 2-3 years.
“Bangladesh is exporting jute products worth an average of US$ one billion every year. We want to increase the export income of jute goods to US$ 2 billion in the next 2-3 years. I will formulate and implement the action plan with that goal,” he said.
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The minister made this remark at a press conference at the EPB (Export Promotion Bureau) booth set up in Frankfurt, Germany on Saturday, said a PID handout here on Sunday.
Nanak said Bangladesh is the world's second largest garment exporter. Garment is the main export product of Bangladesh, he said.
He said a huge demand has been created worldwide for Bangladeshi garments. Germany is the second destination of export products as Bangladesh exports different goods worth some 7 billion US dollars every year.
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Some 90 percent of the goods are garment products, he added.
The minister said initiatives will be taken to increase the export of diversified jute products to reduce dependency only on garment products as export products.
He said Bangladesh is the 2nd largest jute producing country in the world and quality jute is produced in The county.
“Bangladeshi entrepreneurs are producing 282 types of jute products, which are exported to 135 countries of the world,” said the minister.
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Bangladesh Ambassador to Germany Mosharraf Hossain Bhuiyan, Executive Director of Jute Diversification Promotion Center Gopal Chandra Das were present at the press conference.
1 year ago
Despite being environment-friendly, jute not getting the attention RMG industry draws: PM
Bangladesh's Prime Minister Sheikh Hasina today (February 14, 2023) said that despite being an environment-friendly agricultural product, jute did not get the expected attention and incentives like the RMG (readymade garments) industry of the country.
“The way we give incentives to garment industries… being an agricultural product, jute is not getting that opportunity. Jute urgently needs that scope. I have already given my directives in that regard,” she said.
The Prime Minister said this while addressing a programme marking National Textiles Day and inaugurated six new textile engineering colleges.
The programme was held at Bangabandhu International Conference Center (BICC), while the PM joined virtually from her official residence Ganabhaban.
Read More: Govt giving Tk 8 crore incentives to 4 lakh jute farmers to boost production
The theme of National Textiles Day is ‘Let’s use local textile products, build golden Bangla’.
Sheikh Hasina said that once upon a time, jute brought foreign currencies for the country and now that scope has emerged again as climate change has made people acutely conscious about the environment.
“Jute is an environment-friendly product. It is possible to produce numerous products from jute,” she said.
She also said that researchers of the country are working hard on this and have been able to invent various types of products.
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“We should put more importance on jute” she said.
The Prime Minister said that along with traditional items, new creative ideas are needed for better outcome.
She called on RMG entrepreneurs to look for and identify new markets around the world, alongside producing new variations of products.
“We do not want to remain import-dependent, we want to export more,” she said.
Read More: Export of jute products a boon for Satkhira women
In this connection, she said that ICT is playing a big role.
She put emphasis on value-addition to the export items of the country, so that those can bring in more foreign curreny for the country.
Sheikh Hasina said that this is the "digital era" and Bangladesh has become digital.
"If we look at industrial revolutions around the world, we will see one after another concept coming out. Now, the fourth industrial revolution is underway where digital devices will be used the most," she added.
Read More: Jute sticks: A new source of income for Faridpur farmers
For that, she said the government has taken steps to develop human resources in Bangladesh as worthy manpower ready for that industrial revolution.
In this regard, she said that the government has undertaken steps to provide technical training in every upazila.
“Creating skilled manpower is our main goal; in Bangladesh the youths are quite bright,” she said.
Textiles and Jute Minister Golam Dastagir Gazi, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) acting president Md. Shahidullah Azim, and Textiles and Jute Secretary Md. Abdur Rauf also spoke at the event.
Read More: All closed jute mills under BJMC to be reopened within this year: Minister
A documentary was also screened at the programme.
Textiles and Jute Minister Golam Dastagir Gazi, on behalf of the Prime Minister, handed over honorary commemorative to ten institutions and organisations for their contribution in development of the textile sector.
Textiles and Jute Ministry established six new textile engineering colleges in different districts across the country.
The colleges are: Sheikh Rehana Textile Engineering College in Gopalganj, Shaheed Abdur Rob Serniabat Textile Institute at Gournadi of Barishal, Shaheed Kamaruzzaman Textile Institute in Naogaon, Begum Amina Mansoor Textile Engineering Institute in Sirajganj, Bhola Textile Institute in Bhola, and Sheikh Russel Textile Institute in Jamalpur.
Read More: Jute growers paying for drought that resulted in discoloured fibre
Currently, there are six government textile engineering colleges located in Chattogram, Pabna, Noakhali, Jhenaidah, Barishal, and Rangpur. These are affiliated with the Bangladesh Textile University and managed by the Directorate of Textiles under the Ministry of Textiles and Jute.
2 years ago
Export of jute products a boon for Satkhira women
Farida Parvin, a housewife in Sultanpur village under Sadar upazila of Satkhira district, now has her own source of income — making jute products for a private organisation involved in exporting those.
Like Farida, a number of women in the village are now earning money after receiving training from ‘Rishilpi International Handicrafts Organisation’.
Farida has two sons and a daughter and her husband Abdur Razzaque used to run a tea stall to cover the expenses of the five-member family.
In 2016, Farida joined Rishilpi International Handicrafts Organisation after hearing about it from another woman and received training there. Now her monthly income is Tk 5000-5500.
Also read: Diversified jute products fair witnesses huge footfall on closing day
The raw materials are provided by the organisation and as per their demands, she makes jute bags, wall and floor mats.
Tereja Mandal, another housewife of the village, said she is now able to bear the entire expenses of her family and the medical treatment of her husband, who is paralysed, by making jute products.
“The organisation provides Tk 300-350 per jute bag to me and Tk 2500-3000 for each wall and floor mat,” she said.
Around 7,000 women are now involved in making handicrafts for the organisation which has proved to be a boon for them.
Read More: Jute growers paying for drought that resulted in discoloured fibre
European countries are the main buyers of the jute products, and every year, jute products worth Tk 9-10 crore are exported from Satkhira. The jute products are being exported to Italy, Germany, France, Spain, Finland and Switzerland in Europe and to Australia as well.
Sanjay Sarkar, product manager of Rishilpi International Handicrafts, said the organisation has been exporting jute products after giving training to 7,000 women of the district.
Also read: Turkish businesses keen to invest in Bangladesh’s jute sector: Ambassador Turan
“The demand for jute rope and jute cotton is huge in European countries,” he said.
A woman worker can earn Tk 5000-6000 each month by making products for the organisation, he added.
During the pandemic, the demand for jute products was poor but now the demand has gone up again, he said.
Asish Kumar, jute inspector of Satkhira district, said, “People in both Bangladesh and abroad are interested in using jute products as it is environmentally friendly. The demand for jute bags is also high as the government imposed a ban on use of polythene bags.”
Read More: Jute sticks: A new source of income for Faridpur farmers.
Humayun Kabir, deputy commissioner of Satkhira district, said the jute products made by the women of Satkhira can fetch fame for the country as well as play an important role in the national economy.
3 years ago
Jute growers paying for drought that resulted in discoloured fibre
Although local markets in Faridpur district, better known as hub of jute production, have been buzzing with the presence of buyers and sellers, the smile on the faces of jute growers is fading due to low price their yield is fetching.
People involved with jute purchase say that the reason for not paying higher is the discoloured fibre they are getting, as the jute plants were not decomposed properly.
Jute growers have started appearing with their fibres at different local markets in several upazilas including Saltha, Nagarkanda and Boalmari of the district for the last few days. But they are in a sombre mood due to the low price they are getting, that is often short of their production cost during what is the peak season of jute.
The jute growers claimed that they had to count an extra cost for the process of retting that they must put the jute plants through this year, using underground water lifted by shallow machines that run on diesel.
3 years ago
Fire breaks out at jute warehouse in N’ganj
A fire broke out in a jute warehouse adjacent to Narayanganj Metro Cinema Hall on Saturday.
Fortunately, no casualties were reported.
The fire broke out in the warehouse around 11.15 am, said Shahjahan Shikder, deputy assistant director (media cell) of Fire Service and Civil Defense headquarters.
Read: Child killed, 3 hurt in city fire
On information, four fire tenders were pressed into the service and it took them nearly one hour to bring the blaze under control around 12.10pm.
3 years ago
Diversified jute products fair witnesses huge footfall on closing day
The diversified jute products fair witnessed a huge footfall on the closing day, organisers said Wednesday.
The Jute Diversification Product Centre (JDPC), a concern of the Ministry of Textile and Jute, organised the three-day fair on its office premises in Dhaka's Monipuri para.
Read: Diversified jute products fair ends on Tuesday
Entrepreneurs of diversified jute products displayed as many as 282 products across 33 stalls at the fair. And three of the 33 entrepreneurs got the best display awards.
Md Kamrul Hossain, CEO of Holi Craft & Fashion, won the first prize, while Md Zakirul Islam Okul of Suansh Fashion and Ibrahim Khalil of ‘Craft Vision’ bagged the second and third prizes, respectively.
Mohammad Abul Kalam, executive director of JDPC and additional secretary, Ministry of Textile and Jute, handed over the prizes to the winners at the closing ceremony of the fair on Tuesday.
“This is just the beginning. More such fairs will be organised in different cities to encourage people to use jute diversified products,” he said at the event.
Kalam also urged entrepreneurs to improve the quality of products to attract foreign buyers as well.
The JDPC also organised an art competition on Tuesday evening, where artists painted different themes of development celebrating the golden jubilee of Bangladesh.
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Artist Rashidul Islam won the first prize, Monirul Alam the second and SM Mizanur Rahman the third prize.
Moriam Nargis, proprietor of ‘Twinkle CraftCraft Moriam Nargis, told the UNB that there's a growing demand for diversified jute products in Europe. She urged young entrepreneurs to start manufacturing diversified jute products.
3 years ago
Diversified jute products fair ends on Tuesday
The 3-day diversified jute products fair will end on Tuesday at the Jute Diversification Product Centre (JDPC) premises at Monipuri Para.
The JDPC, a concern of the ministry of textile & jute, organized the fair only for JDPC registered entrepreneurs who are producing 282 types of diversified products from jute. A total of 33 stalls of jute-made products participated in the event after a long interval due to Covid-19 pandemic.
The entrepreneurs are happy to get the opportunity of participating in the fair, where products exhibition and sale have happened, said Md. Humayun Kabir Talukder, manager of classical handmade products BD Ltd.
READ: 5-day long diversified Jute Goods Fair 2020 concludes on Tuesday
“We are happy with the huge response of local buyers in the jute diversified products fair, and it needs to be organized in three-month interval for creating awareness about environment-friendly golden fiber,” he added.
People are choosing different types of bags, show-pieces and handicraft items, said Hasina Akter, owner of Fashion & Style, manufacturer of diversified products.
Mohammad Abul Kalam, executive director of JDPC and additional secretary, Ministry of Textile and Jute, told UNB that jute products fair is aimed promoting green items.
He said entrepreneurs are responding well to the ministry's efforts.
Kalam said, both the demand and popularity of jute made diversified products’ are increasing in the global markets as the products are sustainable and have zero pollution level.
The JDPC will organize entrepreneurs and buyers' conferences at the division level to make up the time lost for the pandemic,he said.
3 years ago
Environment-friendly ‘Sonali Bag’ headed to dustbin of history
Environment-friendly Sonali Bag, made of jute, has not been commercially viable even after five years of its pilot production due to fund shortage and continuing promotion of harmful polythene bags. Project insiders and innovators of the product are frustrated after failing to attain commercial viability even as an environmentally friendly alternative to polythene. The project is waiting to die now due to lack of allocation to run the factory, project insiders said. A pilot project was taken up in 2018 to market bags made from jute. However, the bag could not be brought to the market commercially in his fifth year. Inventor Mubarak Ahmed says another Tk 350-400 crore would be needed to market the golden bag.
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Only limited production of bags has been possible The officials of Bangladesh Jute Mills Corporation could not say when the project of commercial production of golden bag, an alternative of polybag will be implemented. In the absence of reliable alternatives, the market has floated banned polythene. The use of polythene is increasing in vegetable markets, grocery stores, shopping malls, and chain shops. Occasional raids have been carried out to control these environmentally harmful products, but the use of polythene has not reduced due to lack of alternatives. Polythene was banned in Bangladesh in 2002. Environmentalists say the failure to enforce the law is not the reason for the release of polythene. Not only Bangladesh, but the whole world is also worried about polythene. Millions of tons of polybags are being used every day, polluting the environment.
Read: Saudi willing to invest in closed jute mills Mubarak Ahmed Khan, Scientific Adviser of Bangladesh Jute Mills Corporation (BJMC), was the inventor of eco-friendly bags from jute named Sonali Bag in 2016.
It is a cellulose-based biodegradable bioplastic, an alternative to plastic bags. This bag is made by collecting cellulose from jute. It looks like ordinary polythene, but it is perishable. Before coming to the market commercially, ‘Sonali Bag’ had received a positive response at home and abroad. A pilot project was taken up in 2016 to market the bag. However, the bag could not be brought to the market commercially in six years.
Read Production in BJMC’s 2 leased out jute mills begins State owned Latif Bawani Jute Mill on the west bank of Shitalakshya River in Demra, Dhaka houses a factory for making Sonali Bags. On April 7, 2019, Tk 10 crore was allocated from Bangladesh Climate Trust Fund for the production of this bag. Necessary equipment and chemicals were purchased with that money. The bag is sold from the BJMC office at Motijheel only. In this context Bangladesh observed Jute Day-2022 on Sunday (March 6) with the theme of ‘Golden country of golden fire, environment friendly Bangladesh’.
Read BTMC’s jute mills incurred loss of Tk 3,168 cr in FY 21: Jute Minister
3 years ago