Bangladesh’s jute industry losing global edge due to high costs, outdated technology: BJSA chairman

New Delhi: Bangladesh’s jute industry is steadily losing its edge in the global market as high production costs, outdated machinery and low productivity continue to drag the sector down, according to Bangladesh Jute Spinners Association (BJSA) Chairman Tapash Pramanik.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In comparison, the jute sector has remained stuck with low-value bulk exports, outdated technology, financial stress and weak institutional support.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