Written by The Banking Post
Jute mill owners have threatened to shut down mills across the country from February 1 unless the government takes urgent action to curb raw-jute hoarding and ensure a steady supply of the key raw material.
The Bangladesh Jute Mills Association (BJMA) and the Bangladesh Jute Spinners Association (BJSA) issued the warning in a joint letter to the adviser of the Ministry of Textiles and Jute, citing severe production disruptions caused by an acute shortage of raw jute since the end of FY25.
The associations said raw-jute prices have surged due to heavy exports and market manipulation, making it increasingly difficult for mills to procure sufficient supplies. As a result, factories are struggling to meet export orders, raising the risk of losing overseas buyers.
They also alleged that some traders and middlemen are hoarding raw jute by creating an artificial supply crisis, with market availability remaining far below demand.
“If mills are forced to shut, unemployment will rise, law and order may deteriorate, and foreign exchange earnings will suffer, hurting the overall economy,” the millers warned.
Following a meeting with the textiles and jute ministry secretary on January 13, a list of alleged hoarders was submitted to the Department of Jute. Later, at a joint meeting on January 21 involving BJMA, BJSA, and the Bangladesh Jute Association (BJA), it was decided that raw jute stockpiled for export to India would be diverted to local mills and sold on a cash basis.
However, BJMA Chairman Md Abul Hossain said the steps taken so far have been largely ineffective. “Hoarders continue to ignore directives and refuse to release jute into the market. More than 180 mills now face closure and are being forced to buy jute at inflated prices, while selling finished goods at a loss,” he said.
BJSA Chairman Tapas Pramanik echoed the concern, calling for strict enforcement and immediate instructions to ensure that jute stored in traders’ warehouses is supplied to mills at reasonable prices. “Without decisive action, all jute mills will shut from February 1,” he warned.
The crisis comes as the jute sector’s export performance continues to weaken. Export earnings fell steadily from $1.16 billion in FY21 to $1.13 billion in FY22, $911.51 million in FY23, $855.23 million in FY24, and $820.16 million in FY25, according to Export Promotion Bureau data.
Industry leaders say unless raw-jute supplies stabilise and prices ease, the sector’s decline will deepen, further threatening jobs and export income.
