Bangladesh’s jute sector is facing a serious crisis as outdated machinery and declining productivity continue to erode the industry’s competitiveness, putting the future of the sector and the livelihoods of thousands of workers at risk. Sector leaders and members of the Jute Industry Protection Committee raised these concerns at a recent press conference in Dhaka, supported by ActionAid Bangladesh.
According to industry representatives, productivity at many jute mills has dropped to just 66 percent due to antiquated technology. So far, the country has already witnessed the closure of 51 jute mills, a trend that continues to alarm stakeholders.
Rising Wages, Mill Closures, and Calls for Policy Action
Committee Executive President Abdul Khalek warned that the Bangladesh Jute Mills Corporation (BJMC) will face serious financial constraints in operating its remaining five state-run jute mills, especially as workers’ wages are set to increase from the beginning of next year.
He cautioned that if these state-owned mills are forced to shut down, around 35,000 workers could lose their jobs, further deepening the social and economic impact of the industry’s decline.
Khalek emphasized that Bangladesh urgently needs to:
- Increase productivity through technological modernization
- Develop stronger domestic and international marketing networks
- Find buyers for growing stocks of unsold jute products
Without these steps, he warned, the jute industry will continue to lose ground in both local and global markets.
Meanwhile, ActionAid Program Director Asger Ali Sabri stressed the importance of enforcing the country’s Packaging Act more effectively. He argued that stronger implementation would encourage the wider use of jute-based bags and packaging in the domestic economy, creating fresh demand and supporting the struggling sector.
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Once known as the “golden fiber” of Bangladesh, jute remains a symbol of national heritage and a key sustainable resource. However, without immediate modernization, marketing reform, and supportive policy enforcement, industry leaders fear that one of the country’s most traditional sectors may continue its rapid decline.
