jute mills

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 Despite its vast potential, Bangladesh’s jute sector continues to struggle under poor planning, outdated technology and a lack of effective policy support.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.” 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 The sector, however, soon began to crumble under financial losses, mismanagement and outdated machinery.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.

3 days ago

BTMC’s jute mills incurred loss of Tk 3,168 cr in FY 21: Jute Minister

The jute mills under the Bangladesh Textile Mills Corporation (BTMC) have incurred a loss of Tk 3,168.46 crore in the fiscal year 2020-21. Textiles and Jute Minister Golam Dastagir Gazi said this parliament responding to a question from Jatiya Party MP Moshiur Rahman Ranga on Thursday. Read: Diversified jute products fair witnesses huge footfall on closing day The jute mills earned Tk 484.48 crore and spent Tk 3652.94 crore 94 crore during the period, he said. Speaker Dr Shirin Sharmin Chowdhury presided over the question and answer session. The Minister said out of 25 jute mills under BTMC, 24 have been shut and one has been rented out. Textile villages are being set up in two of the closed 24 mills. Replying to a query from Dhaka -18 constituency MP Mohammad Habib Hasan of the ruling party, Golam Dastagir Gazi said that at present (Census 2018) there are 589 weaving factories and 1,16,117 units in the country. The weaving industry produces about 47.47crore meters of weaving cloth annually, which meets 28 percent of the country's textile demand (excluding power looms), he said. Read: 'Golden fibre' no longer holds glitter for Khulna jute farmers Replying to a question from Natore-2 MP Shafiqul Islam Shimul, the Minister said that at present the number of looms in the country is 290,282. In reply to a query from MP Begum Lutfunnesa Khan, the Minister said 5.6 lakh tonnes of raw jute have been exported in the 8 months of the current fiscal year. Besides, 5.86 lakh tonnes raw jute and 7.82 lakh tonnes of jute products have been exported in the fiscal year 2020-21, he added.

3 years ago

International tender called for reopening closed jute mills: Jute Minister

Textiles and Jute Minister Golam Dastagir Gazi has said effective steps are being taken to reopen the state-owned jute mills that were closed down last year soon. The mills would be reopened under private management on lease basis. The minister also added that international tenders have already been called in this regard. He came up with these remarks while speaking to the press after joining the monthly coordination meeting of the ministry online on Wednesday afternoon. The minister claimed that jute farmers are currently getting a fair price for raw jute as the value and demand of jute has increased across the world. The average price of raw jute in the current jute season is up to Tk 3,000, which is about 50 percent higher than last year, he added. He also said that Bangladesh earned $953.56 million by exporting jute and jute-made products in the first nine months (July-March) of the current fiscal year 2020-21, which is 22.94 percent more than the same period last year. The growth is also around 10.64 percent higher than the target, the minister said. He hoped that not only would the old workers be rehabilitated, but also new employment opportunities will be created once these privately run mills become operational. On July 1 last year, 25 jute mills under the control of Bangladesh Jute Mills Corporation (BJMC) were declared closed with the aim of creating a competitive environment in the jute sector.

4 years ago