The government has unveiled a comprehensive five-year strategic plan (2026–2031) to revive Bangladesh’s struggling jute sector, aiming to double export earnings to $1.64 billion by 2031 through greater value addition, improved productivity, market diversification, and enhanced global competitiveness.
Prepared by the Department of Jute (DoJ) under the Ministry of Textiles and Jute, the Bangladesh Jute Sector Development Strategy and Action Plan (2026–2031) comes after export earnings from jute and jute products declined by nearly 29% over the past five years, falling from a record $1.16 billion in FY2020-21 to approximately $820 million in FY2024-25, despite continued growth in domestic raw jute production.
The strategy targets annual raw jute production of 11.5–12 million bales, aims to achieve 85–90% self-sufficiency in quality jute seed production, and seeks to increase the share of value-added jute products in total exports from 45% to 70% by 2031.
To strengthen Bangladesh’s position in the growing global market for sustainable natural fibres, the government plans to shift the industry’s focus from exporting raw jute to manufacturing higher-value products such as geotextiles, biodegradable packaging materials, home furnishings, technical textiles, composite materials, fashion products, and automotive components.
The action plan also proposes establishing three to four internationally accredited testing laboratories to reduce exporters’ dependence on overseas certification facilities. Currently, Bangladeshi exporters spend between $500 and $2,000 and wait 10 to 21 days for overseas product testing, compared with $60–$150 and 3 to 7 days in countries such as India and China.
In addition, the strategy emphasizes compliance with evolving international sustainability standards, including the European Union’s Digital Product Passport (DPP) requirements, while promoting digital technologies, stronger industry-research collaboration, and innovation across the jute value chain.
According to Syed Md Nurul Basir, Director General of the Department of Jute, implementing the strategy will require an estimated Tk37–47.5 billion through public investment, private sector participation, development partners, and public-private partnerships.
The roadmap is built around eight strategic pillars, including increasing farm productivity, ensuring quality seed supply, modernising jute mills, promoting research and innovation, establishing internationally accredited testing facilities, diversifying export destinations, digitalising the jute value chain, and introducing policy reforms.
The strategy also identifies key structural challenges affecting the industry, including India’s anti-dumping duties on Bangladeshi jute products, raw jute smuggling, rising production costs, weak research-industry linkages, inadequate product diversification, and limited quality assurance infrastructure. It notes that 73 of Bangladesh’s 266 jute mills are currently closed, while manpower shortages continue to affect the Department of Jute.
To reduce dependence on a limited number of export destinations, the government plans to expand jute exports beyond its three largest markets—Turkey, China, and India, which currently account for 63% of total exports—by strengthening trade promotion efforts in Africa, Southeast Asia, the Middle East, Europe, and North America through international trade fairs, buyer-seller matchmaking, and partnerships with global brands.
