Raw jute shortage disrupts production, mills fear shutdown: BJMA
The association called for immediate government intervention to curb hoarding and ensure excess raw jute stocks are released to mills at reasonable prices
Jute mills across Bangladesh are facing serious production disruptions due to an acute shortage of raw jute at the close of the 2025–26 fiscal year, the Bangladesh Jute Mills Association (BJMA) has said.
In a press release issued today (27 January), the association said abnormal price hikes – driven by exports and an artificially created market crisis – have made it increasingly difficult for mills to procure the raw material needed for operations.
As a result, production has been severely hampered, raising fears of widespread mill closures, it said.
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The BJMA called for immediate government intervention to curb hoarding and ensure excess raw jute stocks are released to mills at reasonable prices.
The association, along with the Bangladesh Jute Spinners Association (BJSA), submitted a formal request to the adviser of the Ministry of Textiles and Jute on 26 January, urging urgent action.
"Without swift measures, jute mills will be forced to shut down," the BJMA said.
According to the association, raw jute supply remained below demand in September, October and November 2025, driving prices steadily higher. Currently, raw jute is selling at Tk5,000–5,500 per maund, depending on quality.
The BJMA alleged that some traders and middlemen have hoarded excessive stocks, exploiting the shortage to push up prices.
The issue was formally raised with the Ministry of Commerce earlier, and a meeting with BJMA and BJSA representatives was held on 25 August 2025. Although a circular was issued on 8 September 2025 to allow conditional raw jute exports, the association said the measure failed to ease the crisis.
Several mills have already halted production due to the shortage, and more closures are likely if the situation continues.
The BJMA warned that extended shutdowns could trigger rising unemployment, law and order challenges, and a negative impact on foreign exchange earnings.
The association also raised concerns about stockpiling by traders and exporters in various regions, creating an artificial shortage aimed at exporting to India.
"Releasing these stocks to local mills at fair prices would help maintain production," the BJMA said.
