Bangladesh’s jute sector has reported a notable increase in export earnings, but industry leaders warn that the rise in value has not translated into higher export volumes. The imbalance, they say, is due to ongoing political unrest in key markets across the Middle East and North Africa—regions that collectively import the majority of Bangladesh’s jute and jute goods.
According to data from the Export Promotion Bureau (EPB), export earnings from jute and jute goods grew by 42.20% during the first ten months of the 2020–21 fiscal year, totaling $924.78 million between July and April, compared to $650.35 million in the same period of the previous fiscal year.
Industry insiders attribute this growth primarily to a steep rise in raw jute prices—nearly 200% per maund over the past two years—rather than increased demand or volume.
Political Instability Dampens Demand
Shahedul Karim, Secretary of the Bangladesh Jute Spinners Association, said export volume has dropped significantly in recent months, with jute yarn exports falling from 28,000 tonnes in March to 19,000 tonnes in April 2025.
He explained that countries such as Saudi Arabia, Syria, Jordan, Egypt, and Turkey, which together account for 66% of Bangladesh’s jute yarn exports for carpet manufacturing, have scaled back their purchases amid escalating political unrest.
“The demand for jute yarn has fallen sharply since the beginning of the instability. If this trend continues, both the export value and volume could decline further in the remaining months of this fiscal year,” said Karim. He also warned that the surging raw jute prices could further impact export competitiveness unless stabilized.
Call for Price Regulation
Karim urged the Bangladesh Jute Mills Corporation (BJMC) to intervene and help maintain more realistic pricing for raw jute and jute goods to safeguard export potential.
Segment-Wise Export Breakdown
- Jute yarn and twine exports reached $422.53 million, up from $313.26 million last year.
- Raw jute exports surged by 69.20%, totaling $289.82 million against a target of $205.12 million, compared to $171.29 million during the same period in 2009–10.
- Jute sacks and bags earned $171.54 million, exceeding the target of $142.96 million and showing a 45.66% increase year-on-year.
Key Markets
Bangladesh’s main export destinations for jute sacks and bags include Belgium, the USA, the UK, Spain, Japan, China, India, Thailand, and Sudan, while India, Pakistan, Brazil, and Belgium are top buyers of raw jute.
Despite challenges, Bangladesh continues to hold a strong position in the global jute market. However, sector leaders stress the need for stabilized pricing, proactive policy support, and diversified market access to sustain long-term growth and protect the livelihoods of thousands dependent on the jute industry.
