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Bangladesh's Jute Industry Loses Global Edge to High Costs, Outdated Tech

Bangladesh's jute industry is losing its global market position due to high production costs, outdated technology, and low productivity. The sector remains dependent on traditional low-value exports like yarn and sacks, failing to diversify into modern, value-added jute goods. In contrast, the nation's ready-made garments sector succeeded due to consistent policy support, modern machinery, and R&D. Consequently, jute export earnings have stagnated at around $1 billion for over a decade.

Key Points: Bangladesh Jute Industry Losing Global Market Edge

  • High production costs weaken competitiveness
  • Outdated machinery and low productivity
  • Stagnant exports for over a decade
  • Lack of diversification into value-added goods
  • Contrast with successful RMG sector policy
2 min read

Bangladesh's jute industry losing global edge due to high costs, outdated technology: BJSA chairman

High costs, outdated tech, and low productivity cause Bangladesh's jute industry to lose its global competitive advantage, says BJSA chairman.

"Bangladesh has fallen behind in research and development, product design and the commercial use of new jute-based items. - Tapash Pramanik"

New Delhi, Jan 4

Bangladesh's jute industry is steadily losing its edge in the global market as high production costs, outdated machinery and low productivity continue to drag the sector down, according to Bangladesh Jute Spinners Association Chairman Tapash Pramanik.

In an interview with 'The Daily Star', Pramanik said jute mills in Bangladesh are struggling to compete with rivals from other countries that have modernised their factories and reduced costs through better technology and efficiency.

He said expensive energy, high interest rates on loans and old machines have made jute products costlier, weakening their position against synthetic fibres and other natural alternatives.

He explained that although jute was once known as the "golden fibre" of the region, its importance has faded over time as the industry failed to evolve with global market trends.

"Today, most jute exports still depend on traditional products such as yarn, hessian and sacks, even as international buyers increasingly look for diversified, value-added and eco-friendly jute goods," he stated.

"Bangladesh has fallen behind in research and development, product design and the commercial use of new jute-based items," he noted.

He noted that the sector is often treated as a legacy industry that needs protection rather than as a modern agro-industrial value chain that should be rebuilt for long-term growth.

Despite jute's environmental advantages, he said the industry has not been able to regain its former glory due to structural weaknesses, policy gaps and market-related challenges.

"Government initiatives have remained fragmented and short-term, instead of bringing meaningful transformation," he added.

Highlighting the contrast with the readymade garments (RMG) sector, Pramanik said RMG became Bangladesh's top export industry because of consistent policy support, modern machinery, better productivity, easy access to finance and continuous research and development.

These factors helped garment exporters integrate quickly into global markets and earn higher margins.

In comparison, the jute sector has remained stuck with low-value bulk exports, outdated technology, financial stress and weak institutional support.

As a result, export earnings from jute and jute goods have remained stagnant between $900 million and $1 billion for more than a decade.

- IANS

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Reader Comments

P
Priya S
Very insightful article. The comparison with the RMG sector is spot on. It shows how focused policy and modernisation can build a world-leading industry. Bangladesh should treat this as a wake-up call. Jute bags are becoming popular again globally due to the plastic ban movement. They have a ready market if they can upgrade.
R
Rohit P
High energy costs and old machines are a killer combo for any manufacturing unit. We see this in many traditional industries across South Asia. Maybe there's an opportunity for Indian tech firms to collaborate? We have experience in textile machinery modernisation.
S
Sarah B
It's sad to see a natural, biodegradable fibre losing ground. The environmental angle is huge! International buyers want eco-friendly options, but they also want quality and design. The chairman is right – they need to move beyond sacks and yarn. Think jute geotextiles, composites, fashionable accessories.
V
Vikram M
Stagnant at $1 billion for a decade tells the whole story. While their garments sector boomed, jute was neglected. This is a lesson for all our regional economies – don't take traditional strengths for granted. Need long-term vision, not short-term sops.
K
Karthik V
With all respect to the challenges, I feel the article and the chairman's views are a bit too pessimistic. The global jute market still exists, and Bangladesh is a major player. Yes, modernisation is needed, but calling it a "legacy industry" that's fading might be an overstatement. It's a core sector for many livelihoods.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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