Reviving jute requires vision, not diversion

The government’s decision to lease an additional 14.80 acres of land at the Bangladesh Jute Mills Corporation’s (BJMC) Narsingdi unit to Jute Alliance Limited for establishing a soybean seed crushing plant raises important questions about the country’s commitment to reviving its once-proud jute industry. While attracting private investment to idle state-owned assets is a pragmatic objective, allocating land within a jute mill for a non-jute industrial project appears inconsistent with the government’s stated policy of revitalising closed jute mills.

There is no denying that the proposed Tk 1,000 crore investment promises significant economic benefits. The project is expected to generate annual output worth Tk 3,000 crore, create around 3,000 jobs and strengthen domestic edible oil production, thereby contributing to food security. Such investments are undoubtedly valuable for an economy seeking industrial diversification and employment generation.

However, the broader concern lies in the message this decision sends. Bangladesh’s jute industry continues to struggle with ageing machinery, low productivity, high energy costs and declining competitiveness, while competitors have modernised their production processes. The sector has also suffered from India’s anti-dumping duties on Bangladeshi jute goods, further weakening export prospects. These structural challenges require focused investment, technological modernisation and coherent policy support rather than a gradual shift of industrial assets towards unrelated sectors.

The government has repeatedly pledged to revive closed state-owned jute mills through long-term leases, public-private partnerships and fresh private investment. If land within these mills is increasingly repurposed for non-jute industries, the objective of restoring the sector risks being diluted. Reviving a jute mill should primarily mean reviving jute production, expanding value-added products and strengthening Bangladesh’s position in the global natural fibre market.

Private investment should certainly be encouraged, but policy consistency is equally essential. If a site has long-term strategic value for the jute industry, every effort should first be made to utilise it for modern jute manufacturing, research or downstream processing before considering alternative industrial uses.

Bangladesh’s jute industry remains a vital source of employment, export earnings and environmentally sustainable products. Reviving it demands more than reopening factory gates; it requires a clear national strategy that aligns investment decisions with long-term industrial priorities. Without such consistency, the promise of rejuvenating the country’s golden fibre may gradually give way to a different industrial future.