New Delhi: Bangladesh’s jute industry is steadily losing its competitive edge in the global market, according to Tapash Pramanik, President of the Bangladesh Jute Spinners Association (BJSA). He pointed out that higher production costs, outdated machinery, and low productivity are major factors pulling the sector down.
In an interview with The Daily Star, Pramanik explained that jute mills in Bangladesh are struggling to compete with counterparts in other countries. While competitors have modernised their factories and improved efficiency through advanced technology, Bangladesh’s jute sector faces significant challenges.
He highlighted that expensive electricity, high loan interest rates, and obsolete machines have increased the cost of jute products. This has weakened their position against synthetic fibres and other natural alternatives in the market.
Pramanik noted that although jute was once considered the ‘golden fibre’ of the sector, its importance has diminished over time due to a lack of development aligned with global market trends.
He added that most jute exports still rely on traditional products such as yarn, hessian, and sacks, while international buyers now seek eco-friendly jute products. Bangladesh is lagging in research and development, product design, and commercial use of new jute-based products.
According to Pramanik, the industry is often viewed as a heritage sector needing protection rather than a modern agro-industrial value chain requiring reconstruction for long-term growth.
Despite the environmental benefits of jute, structural weaknesses, policy shortcomings, and market challenges have prevented the industry from regaining its former stature.
He also mentioned that government initiatives so far have been fragmented and short-term, failing to bring meaningful change.
Contrasting with the Ready-Made Garments (RMG) sector, Pramanik stated that continuous policy support, modern machinery, better productivity, easy access to finance, and ongoing research and development have made RMG Bangladesh’s top export industry.
These factors have helped garment exporters integrate quickly into global markets and earn higher profits. In comparison, the jute sector remains stuck with low-value bulk exports, outdated technology, financial crises, and weak institutional support.
As a result, export earnings from jute and jute products have remained steady between 900 million and 1 billion dollars for over a decade.
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