Bangladesh’s jute industry is facing challenges in the global market due to high production costs, outdated machinery, and low productivity. The Chairman of the Bangladesh Jute Spinners Association, Tapash Pramanik, highlighted that jute mills in the country are finding it hard to compete with international rivals who have modernized their factories and reduced costs through better technology.
Pramanik pointed out that factors such as expensive energy, high interest rates on loans, and old machines have made jute products more costly, impacting their competitiveness against synthetic fibers and other natural alternatives. Despite jute’s historical significance as the “golden fiber” of the region, the industry has struggled to adapt to changing global market demands.
The jute sector in Bangladesh has lagged behind in research and development, product design, and the commercialization of new jute-based items. Pramanik emphasized the need to transform the industry into a modern agro-industrial value chain for sustainable growth, rather than treating it as a legacy sector requiring protection.
While acknowledging the environmental benefits of jute, Pramanik noted that structural weaknesses, policy gaps, and market challenges have hindered the industry’s revival. In contrast to the successful readymade garments (RMG) sector, which benefited from consistent policy support, modern machinery, and continuous research and development, the jute sector has struggled with outdated technology and financial constraints.
Export earnings from jute and jute goods in Bangladesh have plateaued between $900 million and $1 billion annually for over a decade, reflecting the sector’s stagnant growth amid global competition.
