Continuous export decline triggers jute sector

Muhid Hasan :

Merchandise exports of jute and jute goods have declined for the fifth consecutive years as earnings from jute dropped by 4.10 percent in the just-concluded financial year of 2024-25, raising significant concerns for the promising industry, which is one of the few sectors with locally available raw materials.

Slipped from the billion-dollar club, exports from this historically significant sector amounted to only $820.16 million during the July-June period in FY25, according to the latest Export Promotion Bureau (EPB) data.
Earlier in FY24 and FY23, the country’s jute industry earned $855.23million and$911.51 million, respectively, as per EPB data.
However in FY22 and FY21 earnings from the shipments of jute and jute goods were an impressive$1.13 billion and $1.16 billion.
Experts attribute the decline in jute exports to shrinking increasing domestic production costs, poor trade diplomacy regarding jute and jute goods, aggressive pricing and marketing by rival countries, and the anti-dumping duty imposed by India.
In December 2022, India extended the Anti-Dumping Duty (ADD) on jute products imported from Bangladesh for another five years.
Bangladesh primarily exports raw jute, jute yarn and twine, sacks and bags, and other jute-made products to the global market. Bangladeshi entrepreneurs currently produce 282 types of jute products, which are exported to 135 countries worldwide.
In FY25, raw jute export was decreased by 7.94 per cent. Likewise, exports of jute yarn and twine, which constitute a significant portion of Bangladesh’s jute-related international trade, declined by 6.22 per cent. However, exports of jute sacks and bags rose by 5.18 per cent.
Alarmingly, jute yarn and twine exports in last fiscal almost became half since reaching their peak of approximately $800 million in 2020-21 fiscal year.
The Bangladesh Jute Spinners Association (BJSA) Chairman Tapas Pramanik toldThe New Nation that this sector has not received the same level of policy support as it did in the past, while the cost of production has surged due to increased raw jute prices.
Poor jute yield, jute hoarders are driving up raw jute prices, complicating the situation.
He also blamed the anti-dumping duty imposed by the Indian government for the poor export performance.
India imposed Anti-Dumping Duty (ADD) on jute goods from Bangladeshsince 2017 ranging from $6.03 to $351.72 per tonne on goods like jute yarn, twine, jute sacking bags and hessian fabric.
ADD significantly affected Bangladesh’s jute industry, reducing exports and affecting thousands of workers reliant on the sector.
Over the years, Bangladesh has repeatedly urged India to reconsider the duties, arguing that they unfairly restricted trade and undermined regional economic cooperation.
Globally, the jute and jute goods market witnessing significant transformation driven by evolving consumer preferences, and changing industrial demand.
Business trends highlight a surge in demand for biodegradable packaging, textile innovation, and natural fiber-based composites.
The global jute market is projected to expand at a Compound Annual Growth Rate (CAGR) of 5.8 percent during the forecast period of 2025 to 2032.