Nat’l Jute Day today: Rising costs, mills closures, plastic still dominate markets
Muhid Hasan :
Bangladesh celebrates National Jute Day today, but the “Golden Fiber” industry faces a worrying reality as jute exports continue to decline, raw material costs are rising, mills are struggling, and banned plastic bags still flood the market, undermining efforts to revive the sector.
What latest data says
According to the latest Export Promotion Bureau (EPB) data, merchandise exports of jute and jute goods fell for the fifth consecutive year, dropping 4.10 per cent in FY2024-25 to $820.16 million.
This marks a steep decline from $1.16 billion in FY2020-21 and $1.13 billion in FY2021-22, reflecting the sector’s retreat from the billion-dollar club.
Exports of raw jute decreased by 7.94 per cent, while jute yarn and twine , traditionally the backbone of Bangladesh’s jute trade, dropped by 6.22 per cent, nearly halving since their peak of around $800 million in FY2020-21.
Only jute sacks and bags saw modest growth, rising 5.18 per cent, largely due to increased global demand for eco-friendly packaging.
Experts attribute the continued decline to multiple challenges including rising domestic production costs driven by poor jute yields and hoarding of raw jute, anti-dumping duties imposed by India, extended in December 2022 for five more years, ranging from $6.03 to $351.72 per ton on products including jute yarn, twine, sacks, and hessian fabric, weak policy support and lack of sufficient incentives compared to past decades, aggressive competition from other jute-producing countries and changing global trade dynamics.
“Poor policy support and skyrocketing raw material prices have hit the sector hard,” said Tapas Pramanik, Chairman of the Bangladesh Jute Spinners Association (BJSA).
“Thousands of workers rely on this industry, and ongoing trade restrictions have made survival increasingly difficult.”
Mills under pressure
The challenges extend to production infrastructure. Several mills across Khulna and other jute-producing regions have shut down or suspended operations, and more are at risk if raw jute prices remain high and trade hurdles continue.
Despite government initiatives to encourage jute bag usage and reduce plastic dependency, enforcement remains weak. Millions of banned polythene bags continue to dominate daily commerce, preventing jute from replacing plastic in local markets.
Environmentalists warn that plastic pollution remains a crisis, even as jute’s potential as a sustainable alternative goes underutilized.
Looking ahead Globally, the jute market is expected to expand at a compound annual growth rate (CAGR) of 5.8 per cent between 2025 and 2032, driven by demand for biodegradable packaging and natural fiber-based products.
However, unless Bangladesh stabilizes production, improves policy support, and resolves trade barriers, the country risks losing its historical edge in the jute sector.
On National Jute Day, the contrast is stark: while policymakers celebrate a fiber once called the nation’s “Golden Fiber,” the reality is declining exports, struggling mills, and unfulfilled environmental promises.
