Bangladesh Jute Industry Analysis
The Golden Fiber: Production, Trade, and Policy
BDPolicy Lab · 2026-05-20
Bangladesh's jute export earnings fell to $820.16 million in FY25, a 4.1% decline from $855.23 million in FY24 and a sharp contraction from the $1.13 billion peak in FY22. Raw jute exports dropped 7.94% to $148.48 million; yarn and twine fell 6.22% to $461.83 million. The secular decline reflects competition from synthetic substitutes and global demand softness, even as environmental interest in natural fibres creates a long-term opening. Under PM Tarique Rahman's BNP government, revitalising the sector through state mill privatisation, diversified jute goods, and Bangladesh Jute Mills Corporation (BJMC) restructuring remains a contested industrial policy question.
Key findings
- Jute exports fell 4.1% to $820.16 million in FY25 from $855.23 million in FY24. EPB data show a continuous four-year decline: $1.13 billion (FY22), $911.51 million (FY23), $855.23 million (FY24), $820.16 million (FY25). Raw jute: $148.48 million (-7.94%), yarn and twine: $461.83 million (-6.22%). (Source: EPB Monthly Export Performance Report FY25.)
- Raw jute farm-gate price around Tk 4,000 per maund, but export realisations are declining. Mill gate raw jute prices were approximately Tk 4,000 per maund in 2025, broadly unchanged year-on-year, while export unit values continued to soften due to competition from Indian and synthetic alternatives. The price-volume squeeze is compressing mill viability. (Source: BJMA, BJSA price bulletins 2025.)
- Diversified jute goods (bags, geotextiles, composites) are the growth pivot. Hessian, sacking, and yarn face the steepest secular demand decline. Diversified jute products such as shopping bags, geotextiles, and fibre composites attract premium pricing in EU and North American markets where single-use plastic bans are creating demand. Bangladesh currently supplies less than 30% of the global jute goods market. (Source: BJMA, FAO jute outlook.)
- BJMC state mills are a legacy fiscal drain; privatisation stalled. Bangladesh Jute Mills Corporation's remaining state mills operate below capacity and require annual subsidies. Multiple privatisation attempts have stalled due to labour opposition and land valuation disputes. The BNP government has not announced a new BJMC reform framework as of May 2026. (Source: Ministry of Textiles and Jute; BJMC annual report.)
Executive Summary
Bangladesh is the world's second-largest jute producer and the largest exporter of jute and jute goods, commanding approximately 33% of the global market. Annual production stands at 9.6 million bales from 720 thousand hectares, supporting 4.0 million farming families and 1.05 million workers across 265 mills. Export earnings reached $0.85 billion, with diversified jute products accounting for 49.1% of total jute exports.
Production and Cultivation
Jute remains one of Bangladesh's most important cash crops, cultivated primarily in the low-lying floodplains of the Ganges-Brahmaputra-Meghna delta. Current yield averages 2.41 metric tons per hectare, below the potential achievable with improved varieties and modern retting techniques. BJRI has sequenced the jute genome (Corchorus olitorius and C. capsularis), enabling marker-assisted breeding for higher fiber quality, disease resistance, and climate resilience.
Trade and Export Performance
Jute exports generated $0.85 billion, with year-on-year growth of 0.0%. The product mix is shifting toward higher-value diversified goods (geo-textiles, composites, lifestyle products), which now represent 49.1% of jute export earnings. Raw jute prices averaged BDT 2,800 per maund, reflecting fluctuations driven by harvest quality and international demand.
BJMC Reform and Mill Modernization
The Bangladesh Jute Mills Corporation (BJMC) has undergone partial privatization since 2020, with several state-owned mills transferred to private operators or closed. The remaining 265 mills (state and private combined) require significant capital investment in spinning technology, effluent treatment, and quality control systems to meet international standards.
Environmental Advantage and Policy
Jute is biodegradable, carbon-negative during growth, and requires minimal chemical inputs compared to synthetic alternatives. The Mandatory Jute Packaging Act (2010) requires certain commodities to be packaged in jute, but enforcement remains inconsistent. Expanding the plastic ban to single-use items and enforcing existing regulations would significantly boost domestic jute demand while addressing Bangladesh's plastic pollution crisis.
Diversification Opportunities
Geo-textiles represent the highest-growth segment, used in riverbank stabilization, road construction, and slope protection. Jute composites are finding applications in automotive interior panels and construction materials. Jute fashion and lifestyle products (bags, home textiles, crafts) command premium prices in European and North American markets.
Policy Recommendations
- Enforce the Mandatory Jute Packaging Act across all regulated commodities and extend to single-use plastic alternatives.
- Establish a jute MSP floor indexed to production costs, protecting farmers from price volatility.
- Invest in ribbon retting technology to improve fiber quality and reduce water pollution from traditional retting.
- Accelerate geo-textile adoption in government infrastructure projects (BWDB, LGED, RHD).
- Support BJRI genomics research for higher-yield, disease-resistant varieties.
- Modernize spinning mills through PPP investment and technology transfer.
- Develop environmental premium pricing for jute products in export markets, leveraging carbon footprint certification.
Data sources: BJRI, BJMC, BJSA, EPB, BBS, FAO, UN Comtrade.
Data and methodology
Export earnings from EPB monthly statements (July-June fiscal year). Raw jute price from BJMA and BJSA price bulletins. Global market share estimate from FAO jute production and trade database (FAOSTAT). Diversified product share from BJMA export category data. Analysis by BDPolicy Lab.