Bangladesh's jute sector faces global market risks from synthetic fibers, outdated tech

The global competitiveness of Bangladesh's jute products is being undermined by several factors, including the rising availability of cheap synthetic fibers and outdated domestic industry practices. Textile and Jute Minister Khandakar Abdul Muktadir informed parliament that these challenges, coupled with weak branding and limited testing facilities, are putting jute exports at risk.

Responding to parliamentary questions, Muktadir detailed the structural and market-related hurdles confronting the sector. He noted that while the export potential for jute is significant, the industry struggles against cheaper synthetic alternatives. Furthermore, many jute mills operate with outdated technology, and the lack of internationally standardized laboratory testing facilities hinders quality assurance. Weak branding and insufficient market exploration also contribute to the sector's difficulties.

The minister outlined government initiatives aimed at revitalizing the industry. He referenced a decision made on July 1, 2020, when the previous government shut down production at 25 mills run by the Bangladesh Jute Mills Corporation (BJMC). A plan was put in place to reopen 20 of these mills under private lease management.

To date, 14 mills have been successfully leased out, with nine of them already operational. The government is actively working to lease out six more mills. According to the government's 31-point plan, the remaining units are expected to resume operations under private management by December of this year. This strategy aims to modernize operations and improve the global standing of Bangladesh's jute products.

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Outdated mills, weak branding and limited testing facilities are also hurting the sector’s global competitiveness, he says.