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[🇧🇩] Jute Industry in Bangladesh

[🇧🇩] Jute Industry in Bangladesh
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G Bangladesh Defense
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.

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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.​
 
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Govt reinstates jute export fees

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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.​
 
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Jute: Turning crisis into opportunity

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

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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.​
 
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Rajshahi beams with hope for bumper jute harvest

OUR CORRESPONDENT
Published :
Jul 22, 2025 09:10
Updated :
Jul 22, 2025 09:10

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Farmers are engaged in jute retting work in Paba upazila of Rajshahi distric Photo : FE Photo

Hopes are arising in farmers as timely monsoon rains have accelerated jute cultivation in Rajshahi district this season, beckoning prospect for a bumper harvest and better returns.

After a dry spell during sowing and initial growth of plants, recent rains have filled local waterbodies, easing concern over the critical retting process and significantly improving the fibre quality of jute.

According to the Department of Agricultural Extension (DAE), Rajshahi, the district has surpassed its jute cultivation target this year, with 17,305 hectares of land brought under the farming-exceeding the planned 17,185 hectares and marking a record for the past several years.1000062356

Recently visiting Paba, Mohanpur, and Durgapur upazilas, this correspondent found vibrant fields of mature jute here and there.

Farmers are now immersed in labour-intensive harvesting activities-cutting jute, bundling, soaking, and extracting the golden fibre.

The harvesting began in mid-Asharh (early July) and is expected to continue through the month of Srabon (August).

"This year started with uncertainty," said Shahidul Islam, a farmer from Paikpara in Paba. "Due to the lack of rain, irrigation costs doubled. But now, with full ponds and canals, we are retting the jute properly. The quality of the fibre-soft, long, and golden-will fetch us a higher price."

Traditionally, jute is sown between late Falgun and the month of Baishakh. Farmers this year sowed on schedule but faced challenges with irrigation and fears of fibre quality deterioration due to inadequate waterbodies for retting. Poor retting conditions typically cause fibre to darken and toughen, lowering its market value by up to 50 per cent.

The recent rainfall, however, has transformed the outlook. With ample water available, retting is being done under ideal conditions, resulting in higher-grade fibre.

Production costs, however, have risen. Selim Reza, a farmer from Darshanpara Union, noted that cultivation cost per bigha has surged to Tk17,000-18,000, primarily due to higher prices of seeds, fertilisers, pesticides, and labour. Labour costs alone have increased to Tk500-600 per worker per day, with 10-12 workers needed for post-harvest processing.

"Despite the higher input costs, we expect yields of 10-12 maunds per bigha," Reza said. "Given the quality of fibre, if market prices hold or rise, we should be able to recover our investment and still make a decent profit."

Current wholesale market prices for jute in Rajshahi range between Tk 3,000 and Tk 3,800 per maund depending on quality, according to Sumonto, a field inspector with the Department of Agricultural Marketing. "These are early-season rates," he added. "With more premium white jute entering the market soon, prices are likely to go up."

Umm-e-Salma, deputy director of the DAE, Rajshahi, shared her optimism about this season's yield. "The area under cultivation has exceeded targets, and the crop quality is significantly better than in recent years. With retting no longer a bottleneck, we expect farmers to receive favourable prices."​
 
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Water crisis hampers jute harvest in Rangpur
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Thousands of farmers across the Rangpur region are unable to harvest their mature jute crops due to a severe water crisis, as a prolonged dry spell and scant rainfall have left local water bodies nearly dry.

With no water available for retting, fully grown jute plants are lying idle in the fields, raising serious concerns among growers and jeopardising the timely transplantation of aman paddy during the peak season.

Jute is one of the major crops in five districts of the region -- Lalmonirhat, Kurigram, Rangpur, Gaibandha, and Nilphamari. Traditionally, by early July, rivers, canals, ponds, and other water bodies fill up, providing suitable conditions for retting. But this year's scenario is starkly different.

According to the Department of Agricultural Extension (DAE), jute has been cultivated on 48,457 hectares in the Rangpur region this year -- about 7,000 hectares less than last year. The production target is set at 1,09,000 tonnes of jute fibre.

Subal Chandra Roy, in-charge of the Rajarhat Agricultural Weather Observatory, said rainfall in June this year was only 354 millimetres, compared to 750 millimetres during the same month last year. From July 1 to July 20, the recorded rainfall was just 65 millimetres -- a sharp drop from 825 millimetres during the same period last year.

"It costs around Tk 2,000 to Tk 2,500 to produce one maund of jute fibre. Any profit comes mainly from the jute sticks. Earlier, we used to ret jute in local ponds and ditches. But this year, there's no water anywhere, so I haven't even started cutting the jute," said Ranjit Chandra Das, 65, a farmer from Phulbari upazila of Kurigram.

Mansur Ali, 60, a farmer from Rajibpur upazila, cultivated jute on 12 bighas of land but has only been able to harvest from two bighas so far. "If I can't ret the jute within this July, Aman transplantation will be significantly delayed, leading to huge losses," he said.

Agricultural officials say farmers are reluctant to adopt modern retting methods.

"Although the ribbon retting method can be used with less water, most farmers are not interested in it. They rely heavily on the traditional method. Due to insufficient rainfall, water bodies have not filled up this year, and that's why farmers are struggling to ret jute," said Abdullah Al Mamun, deputy director of DAE in Kurigram.

He said, "Because of changing climate and market instability, farmers are gradually losing interest in jute cultivation."​
 
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