Bangladesh Expands Jute Product Reach to 138 Countries Amid Raw Jute Export Shifts

Bangladesh continues to solidify its position as a global leader in the jute industry, diversifying its market reach and navigating complex domestic supply challenges. Recent data reveals a significant disparity between the export of raw jute and finished jute goods, reflecting a strategic shift toward value-added products to boost economic returns.

Global Market Penetration: Goods vs. Raw Fiber

Textiles and Jute Minister Khandaker Abdul Muktadir recently detailed the sector’s expansive footprint. According to the minister, Bangladesh’s ability to export jute goods to 138 different nations demonstrates the global demand for finished jute products. Major destinations for these goods include the USA, UK, China, Iran, Spain, Belgium, Italy, Japan, Germany and Canada, among others ([UNB]).

In contrast, the export of raw jute is more concentrated, serving 30 countries. Key markets for the raw fiber include China, Iran, Spain, Belgium, the US, the UK, Italy, Turkey, and Russia ([UNB]).

Export Volume Analysis

The volume of exports highlights the industry’s focus on manufactured goods over raw materials:

• Jute Products: In the 2024-25 financial year, export volume hit 751,739 metric tons. For the 2025-26 fiscal year (July to February), the volume stood at 409,366 metric tons ([UNB]).
• Raw Jute: Exports totaled 42,039 metric tons in 2024-25, with 22,850 metric tons recorded between July and February of the 2025-26 fiscal year ([UNB]).

Domestic Pressures and Export Restrictions

Despite the global reach, the domestic market has faced volatility. On September 8, 2025, the commerce ministry restricted raw jute exports, making shipments conditional upon prior approval ([The Daily Star]). This move aimed to increase the domestic supply of natural fiber and curb rising prices.

These restrictions were triggered by several critical factors:

• Production Decline: Production fell by 6.5% year-on-year to 89.5 lakh bales ([The Daily Star]).
• Price Surges: Medium-quality jute prices rose to Tk 3,600-3,700 per maund, up from Tk 2,800-3,200 the previous year ([The Daily Star]).

Industry Conflict: The Debate Over Raw Exports

The government’s approach to raw jute has sparked a debate between exporters and millers. The Bangladesh Jute Services Association (BJSA) and the Bangladesh Jute Mills Association (BJMA) have jointly called for a complete ban on raw jute exports. They argue that stopping the export of raw fiber would revive the domestic jute sector, boost production capacity, and help the industry regain lost ground ([Bangladesh Textile Journal]).

However, the government continues to manage exports on a case-by-case basis. For example, the Ministry of Commerce recently authorized 12 local firms to export a total of 2,984 tons of raw jute ([Trade World News]).

Future Outlook

Bangladesh is currently balancing two competing priorities: maximizing foreign exchange earnings through global exports and ensuring the survival of its domestic milling industry. While the reach of finished jute goods to 138 countries signals strong international competitiveness, the internal struggle over raw fiber availability suggests that the industry’s long-term health depends on stabilizing domestic production and shifting further toward high-value manufactured exports.