Govt reinstates jute export fees

The government has refrained from hiking fees on the export of raw jute and jute products and instead reinstated previous rates, according to a notification issued by the Ministry of Textiles and Jute.

Under a gazette notification issued on July 12, exporters will continue to pay Tk 2 per bale (around 180 kilogrammes) of raw jute and 10 paisa on every Tk 100 gained from the export of jute products.

A previous order issued on April 7, 2025 sought to raise the export fees.

The ministry had proposed raising the fee on raw jute to Tk 7 per bale from Tk 2 per bale, which was fixed in 1995.

It had also planned to increase the fee on jute products to Tk 0.50 per Tk 100 of export value from Tk 0.10, which was set three decades ago. The April 7 order was cancelled through a notification dated June 26, 2025.

Welcoming the move, Md Farhad Ahmed Akanda, chairman of Bangladesh Jute Association (BJA), a platform of jute exporters, said the government's decision to retain the existing rates has brought "slight relief" to exporters.

Meanwhile, Tapash Pramanik, chairman of Bangladesh Jute Spinners Association, cautioned that there were other taxes and fees which were threatening the country's jute exports by raising costs and eroding competitiveness.

"Exporters are already burdened with charges like source tax and a 1 percent advance income tax on exports," he said.

Bangladesh's jute sector faces stiff competition from synthetic alternatives such as polypropylene, he said.

Pramanik said Indian restrictions on nine jute items have also jeopardised around $160 million worth of exports.

He urged the government to consider tax waivers and incentives, warning that the sector—which supports some 4.5 million people—risks losing ground without urgent government support and negotiations with key markets.