Raw jute shortage disrupts production, mills fear shutdown: BJMA
Staff Reporter :
Jute mills across the country are grappling with severe production disruptions due to an acute shortage of raw jute towards the end of the 2025–26 fiscal year, the Bangladesh Jute Mills Association (BJMA) has said.
In a press release issued on Tuesday, the association said abnormal price hikes, fuelled by increased exports and what it described as an artificially created market crisis, have made it increasingly difficult for mills to procure adequate raw jute for regular operations.
As a result, production in many mills has been seriously affected, raising concerns over possible widespread shutdowns if the situation persists.
The BJMA urged the government to intervene immediately to curb hoarding and ensure that excess raw jute stocks held by traders are released to mills at reasonable prices.
The association, along with the Bangladesh Jute Spinners Association (BJSA), submitted a formal appeal to the adviser of the Ministry of Textiles and Jute on 26 January, seeking urgent measures to address the crisis. “Without prompt government action, jute mills will be forced to shut down,” the association warned.
According to the BJMA, the supply of raw jute remained below demand during September, October and November 2025, pushing prices steadily upward. At present, raw jute is being sold at Tk5,000 to Tk5,500 per maund, depending on quality.
The association alleged that a section of traders and middlemen has hoarded large quantities of raw jute, taking advantage of the shortage to drive up prices.
The issue was earlier raised with the Ministry of Commerce, and a meeting involving representatives of the BJMA and BJSA was held on 25 August 2025. Although the government later issued a circular on 8 September 2025 allowing conditional exports of raw jute, the association said the move failed to ease the crisis.
Several jute mills have already suspended production due to the shortage, while more are at risk of closure if the situation continues, the BJMA said.
The association cautioned that prolonged shutdowns could lead to rising unemployment, law and order problems and a decline in foreign exchange earnings.
It also expressed concern over alleged stockpiling of raw jute by traders and exporters in different regions, creating an artificial shortage aimed at exporting to India. Releasing these stocks to local mills at fair prices would help keep production running, the BJMA added.