[🇧🇩] Jute Industry in Bangladesh

[Saif]

BJMC BLEEDING CONTINUES

The BJMC, which operated the mills until June 2020, incurred losses of Tk 775 crore in the fiscal year 2019-20, the highest on available records.

The corporation suffered Tk 400 crore plus in the subsequent year after shutting down the jute mills and laying off workers.

Its losses continued in the following years too, as delays in leasing out the closed mills to private players and integration of existing employees to other state agencies, and to protect its huge estate.

Since the closure of the mills, the BJMC's total losses crossed Tk 1,300 crore until FY25, according to the Bangladesh Economic Reviews of different years.

The government projects BJMC's loss at over Tk 210 crore for the current fiscal year.

The closure of the loss-making mills might have slowed the bleeding by BJMC, but it did not stop completely. To do so, either the leasing process will have to be expedited, or the government will view the actual costs of life and livelihood through a different lens.

Kudrat-E Khuda, president of Patkal Rokkay Sammilito Nagorik Porishad, wants the government to reopen the mills and give priority to the experienced workers.

"Workers have the right to live with dignity," said the civil society activist.​

 

[Saif]

Govt reinstates jute export fees

The government has refrained from hiking fees on the export of raw jute and jute products and instead reinstated previous rates, according to a notification issued by the Ministry of Textiles and Jute.

www.thedailystar.net

Govt reinstates jute export fees

Star file photo

The government has refrained from hiking fees on the export of raw jute and jute products and instead reinstated previous rates, according to a notification issued by the Ministry of Textiles and Jute.

Under a gazette notification issued on July 12, exporters will continue to pay Tk 2 per bale (around 180 kilogrammes) of raw jute and 10 paisa on every Tk 100 gained from the export of jute products.

A previous order issued on April 7, 2025 sought to raise the export fees.

The ministry had proposed raising the fee on raw jute to Tk 7 per bale from Tk 2 per bale, which was fixed in 1995.

It had also planned to increase the fee on jute products to Tk 0.50 per Tk 100 of export value from Tk 0.10, which was set three decades ago. The April 7 order was cancelled through a notification dated June 26, 2025.

Welcoming the move, Md Farhad Ahmed Akanda, chairman of Bangladesh Jute Association (BJA), a platform of jute exporters, said the government's decision to retain the existing rates has brought "slight relief" to exporters.

Meanwhile, Tapash Pramanik, chairman of Bangladesh Jute Spinners Association, cautioned that there were other taxes and fees which were threatening the country's jute exports by raising costs and eroding competitiveness.

"Exporters are already burdened with charges like source tax and a 1 percent advance income tax on exports," he said.

Bangladesh's jute sector faces stiff competition from synthetic alternatives such as polypropylene, he said.

Pramanik said Indian restrictions on nine jute items have also jeopardised around $160 million worth of exports.

He urged the government to consider tax waivers and incentives, warning that the sector—which supports some 4.5 million people—risks losing ground without urgent government support and negotiations with key markets.​

 

[Saif]

Jute: Turning crisis into opportunity

The illogical ban on export of jute and jute goods from Bangladesh to India through land ports has dealt a severe blow not only to the jute industry but also to the cultivation of this cash crop. Only one option has been left open for millers and exporters of finished products and raw jute in Bangl

thefinancialexpress.com.bd

Jute: Turning crisis into opportunity

FE
Published :
Jul 16, 2025 22:50
Updated :
Jul 16, 2025 22:50

The illogical ban on export of jute and jute goods from Bangladesh to India through land ports has dealt a severe blow not only to the jute industry but also to the cultivation of this cash crop. Only one option has been left open for millers and exporters of finished products and raw jute in Bangladesh and that alternative proves highly disincentive to jute trade. As high as $100 additional freight charge on each tonnne of jute or jute products has to be borne by exporters if the alternative sea route to Kolkata via Nhava Sheva Port in Maharashtra is used. The atrociously long detour is likely to hurt not only jute trade between the two neighbours but also make the products costlier in India.

It certainly is a political decision by the Narendra Modi government that looks for killing two birds with one stone. The central government of India and the state government of Mamata Bandopadhya are at loggerheads on several issues. Jute trade between West Bengal and Bangladesh thrived because of modernisation of jute mills near Kolkata with demand for raw and semi-processed jute from Bangladesh. This explains the trade dispute that has been deliberately initiated by the receiving country following the fall of Sheikh Hasina's regime. This particular move and the drive against Bangla-speaking nationals, targeting extradition of some, have backfired politically with Mamata's popularity now soaring and negating any possibility of BJP breakthrough in West Bengal. The economic costs will be heavy for both West Bengal and Bangladesh. There is no chance the state government can bypass the central government in striking any trade deal.

So, how can Bangladesh overcome the crisis? Jute millers and exporters are clamouring for compensation or restoration of the cash incentives at the 60 per cent rate allowed before 2024 and also waiver of export duties. Well, such concessionary measures can at best be an emergency or short-term solution in a competitive market but the country now needs to have a long view of the issue. Bangladesh cannot save its jute industry or the crop itself as an export good depending permanently on another country. In a way, it is reaping the fruits of the seeds it sowed. Or, the local industry of the once golden fibre would not have come to this moribund state. Jute industry in Kolkata also disintegrated at one point but a political decision to revive it worked wonder.

Bangladesh should also think of developing a sustainable modern industrial base for jute. The industry was systematically destroyed and wavering on the part of successive governments was responsible for a decline of the industry. At a time when the entire world is raising voice against polythene and plastic, this natural fibre stands a sure chance of making a turnaround. But knowing how to use it as a most-sought-after product around the world is of paramount importance. The biodegradable poly bag called 'sonali bag' invented by a Bangladeshi scientist Dr. Mubarak Ahmad Khan could lead the way but for the political indecision. Still time is not out. Government support in developing factories and mills fashioned on the prototype the scientist developed may provide an answer to its limited capacity as well as problems facing export of jute and jute goods. There is a need for developing mills of mass production in order to bring down the price of sonali bags. Thus the golden days of the golden fibre can stage a comeback with no need for crying hoarse over imposition of anti-dumping duty and ban on use of land port by the big neighbour.​