23 jute mills in Khulna to suspend production from Sunday
According to the Jute Mill Owners Association, mills are struggling to maintain normal operations as raw jute has become scarce and prices in local markets have surged abnormally.
Production at 23 private jute mills in the Khulna region will be suspended from Sunday due to an acute shortage of raw jute, mill owners said.
The crisis stems from excessive rainfall in key jute-growing districts—Shariatpur, Madaripur and Gopalganj—which disrupted cultivation and resulted in lower-than-expected output this season.
Although the government imposed a ban on jute exports from 8 September to protect domestic mills, industry insiders said the measure has failed to stabilise supply or prices.
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According to the Jute Mill Owners Association, mills are struggling to maintain normal operations as raw jute has become scarce and prices in local markets have surged abnormally. The association has therefore decided to halt production at 23 mills in Khulna from Sunday.
Millers said heavy rainfall during May and June severely affected jute production in the southern region. Although the jute season officially began on 1 July, the expected inflow of raw jute did not reach major trading hubs in Daulatpur, Khulna and Narayanganj.
The situation worsened after India imposed a ban on jute exports to protect its farmers, leaving Khulna-based exporters in further difficulty, they said.
Taking advantage of the supply crunch, traders allegedly hoarded jute illegally in local markets. With no export outlets available, prices rose sharply in markets such as Chuknagar, Kapilmuni, Terokhada, Jhaudanga, Tala, Kalaroa and Parulia, further limiting mills' ability to procure raw materials.
Mills set to suspend production include Daulatpur Jute Mill, Khalishpur Jute Mill, Star Jute Mill, Sagar Jute, Jute Textile, Joy Jute, Habib Agro Jute, Ayan Jute, Jessore Jute, Nomani Jute, Ohab Jute, Faruk Jute, Web Jute, Super Jute, FR Jute, Quality Jute and Yasin Jute, among others.
In a letter to the government, the association said shortages of raw materials, combined with abnormal price hikes driven by middlemen, have created an artificial crisis and pushed mills toward operational disruption.
Bangladesh Jute Spinners Association (BJSA) Chairman Tapas Pramanik said hoarders are controlling the market and warned that prices could rise further due to manipulation by exporters.
Sarjit Sarkar, acting assistant director of the Jute Department in Khulna, said raw jute is currently selling at Tk4,800–Tk5,000 per maund in southern markets, although prices fell by around Tk200 per maund on Wednesday. He added that farmers typically do not retain stocks at home at this time of year.
Meanwhile, Mongla Custom House Assistant Commissioner Lopa Saha said in a letter sent to relevant departments on January 20 that no jute exports were recorded from Mongla Port in the 2025–26 fiscal year.
