Exports of jute and jute goods keep falling

Bangladesh's jute and jute goods sector has become pale as year-on-year exports have slipped from the billion-dollar club even after huge government investments for sectoral development, analysts say.

Local manufacturers and jute processors exported goods worth $820.16 million in the just-concluded fiscal year of 2024-25, the Export Promotion Bureau (EPB) data shows.

The export of what was once Bangladesh's golden fibre failed to return to the billion-USD-mark after the fall from that position in FY23.

The earnings from the shipments of jute and jute goods were an impressive $1.16 billion in FY21, which then started falling, official data shows.

In FY22, export earnings slipped to $1.13 billion and maintained a steep fall to $911.51 million in FY23, $855.23 million in FY24, and $820.16 million in FY25, the EPB statistics show.

Meanwhile, the government has invested hundreds of billions of takas every year for the jute sector's development through the Ministry of Textiles and Jute.

Currently, the agencies of the ministry are implementing 21 development projects under the Annual Development Programme (ADP) at a combined cost of Tk 3317.17 billion.

Except for jute sacks and bags, the shipments of jute and all jute goods declined in FY25 compared to the previous fiscal year.

According to the EPB, Bangladeshi jute and jute goods exporters shipped $148.48 million of raw jute in FY25, 7.94 per cent lower than $161.28 million in the previous fiscal year.

The shipments of the highest export earners - jute yarn and twine - dropped by 6.22 per cent to $461.83 million in the last fiscal year from $492.45 million in FY24.

Meanwhile, the shipments of jute bags and sacks showed a better performance in FY25 as exporters sent products worth $125.96 million, 18.51 per cent higher than $492.45 million in FY24.

Economists and jute exporters said the low rate of value addition and the smuggling of jute goods affect Bangladesh's shipments.

Besides, India's anti-dumping duty on Bangladesh's jute and jute products is one of the reasons behind the low foreign exchange earnings, they said.

India imposed anti-dumping duties on Bangladeshi jute products in 2017, citing unfair pricing and market distortion.

The move significantly affected Bangladesh's jute industry, reducing exports and affecting thousands of workers who rely on the sector.

India's Directorate General of Trade Remedies (DGTR) carried out a sunset review investigation and recommended an extension of the anti-dumping duty on the import of jute products from Bangladesh and Nepal in September 2021.

The finance ministry of India extended the levy on December 30, 2022.

Local jute goods maker Rejaul Karim Pintu told The Financial Express the global economic slowdown, coupled with shrinking worldwide demand for jute products, significantly impacted exports.

"Raw jute prices increased significantly in recent years. So, the cost of production increased, impacting export competitiveness," Mr Pintu, also the senior vice chairman of the Bangladesh Jute Goods Exporters Association (BJGEA), said.

Besides, India's anti-dumping duties on jute products from Bangladesh and the smuggling of raw jute into India are affecting export earnings, Mr Pintu, the owner of Bico Jute Fibre Ltd, said.

Economist Masrur Reaz, also the chairman and chief executive officer of Policy Exchange Bangladesh, said Bangladeshi producers have mainly failed to add value to jute and basic jute goods, which is why export earnings have not grown.

India's anti-dumping duty is also a reason behind the falling trend of the export of jute and jute goods, he added.

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