Jute millers threaten nationwide shutdown from Feb 1 over raw jute shortage

Bangladesh’s jute millers have warned of a countrywide shutdown from February 1 if the government fails to resolve an acute shortage of raw jute, which they say has already disrupted production and forced several mills to close.

The Bangladesh Jute Mills Association (BJMA) said its member mills are facing severe difficulties towards the end of the current 2025–26 fiscal year as they are unable to procure adequate raw jute amid a sharp and abnormal rise in prices, according to a press release.

BJMA and BJSA jointly wrote to the adviser to the Ministry of Textiles and Jute on January 26, urging government intervention to release stockpiled raw jute at reasonable prices, curb hoarding, and ensure sufficient supply to mills. Without prompt action, they said, shutdowns would be inevitable.

Raw jute is now selling at Tk 5,000 to Tk 5,500 per maund, depending on quality, putting it beyond the purchasing capacity of many mills.

During the peak harvesting season in July–August 2025, raw jute was trading between Tk 2,200 and Tk 2,400 per maund. The current price represents a more than 120 percent increase in just six months.

According to the association, prices began rising steadily from September to November 2025 due to a supply-demand mismatch, worsened by continued exports of raw jute and alleged hoarding by a section of traders and exporters.

BJMA claimed that a handful of middlemen have stockpiled raw jute in warehouses, creating an artificial crisis in the domestic market. The millers said they had earlier raised the issue with the commerce ministry.

In September 2025, the Ministry of Commerce amended the Export Policy 2024–27 to move raw jute onto the “conditional export” list, requiring prior approval for all shipments.

However, the ministry subsequently issued circulars allowing 12 firms to export nearly 3,000 tonnes of raw jute in October alone.

BJMA and the Bangladesh Jute Spinners Association (BJSA) said that these approvals, granted while local prices were already skyrocketing, depleted the domestic stock and emboldened hoarders.

Following meetings with representatives of BJMA and BJSA in August and September last year, the ministry issued a circular allowing the conditional export of raw jute. However, the measure failed to stabilise the market, the association said.

Several jute mills have already suspended operations due to the shortage, and the remaining ones may follow suit if the situation persists.