Bangladesh has long been renowned for its booming jute industry. One of the most ecofriendly and sustainable crops jute known as the golden fiber. It is a natural fiber extracted from jute plant. With growing awareness for environment friendly products, the need for jute-based products has never been greater. Bangladesh’s history and culture have been heavily reliant on jute for millennia. In the past the jute industry was one of the largest in the nation. Being one of the top producers of jute in the world, the country is home to several businesses that produce and export jute goods all over the world. George Auckland and Shyamsunder Sen, a Bengali partner founded the country’s first jute mill in 1855. The jute industry has been important in Bangladesh since the growth of the East India Company.
Jute’s Significance in Bangladesh
Jute has been an integral part of Bangladesh’s economy for decades, providing employment to millions and contributing significantly to export earnings. With rising global demand for sustainable and biodegradable products, jute is gaining renewed interest as an environmentally friendly alternative to plastic.
What is the scope of Bangladesh’s jute market?
Bangladesh is the second largest producer of jute in the world. The ‘golden fiber’ of Bangladesh is the customary term for jute. The IMARC Group projects that the jute bag market will grow at a compound annual growth rate (CAGR) of 10.4% to reach $3.84 billion in 2027. In Bangladesh the jute sector generates 3% of total export revenue and 1% of the nation’s GDP. Bangladesh has the potential to export jute stick based charcoal worth US$ 3.0 to 3.5 billion. Bangladesh exports jute products to over 135 countries, including Australia, Belgium, Brazil, Canada, China, France, Germany and the United States.
Bangladesh exports jute and jute products to over 100 countries. These exports contribute to the country’s GDP and foreign currency earnings. The jute industry employs many people in growing, processing, transporting and converting jute. Jute and jute related export revenues dropped 19% to $912 million in FY23 from $1.12 billion in FY22, according to the Export Promotion Bureau’s (EPB) most recent data. According to the Food and Agriculture Organization of the United Nations (FAO), Bangladesh is the world’s largest producer of jute in 2024, accounting for 58% of the world’s total jute production.
Environmental significance
The importance of our relationship with jute versus plastic is becoming more and more clear. Jute is a renewable, biodegradable resource that’s environmentally friendly. Jute leaves enrich the soil, and jute can be rotated with rice to restore soil fertility. Jute cloth can prevent erosion while natural vegetation becomes established. Globally, plastic materials are the cause of significant pollution. Furthermore, plastic bags are not biodegradable. In fact, according to scientific studies the decomposition of plastic can take up to 2,000 years. Compared to some cellulosic fibers like cotton, even the manufacturing of jute uses less water per hectare of land. Because jute cultivation is less likely to be pest free, it helps to reduce soil issues in the field. Jute is a crop that emits no carbon.
According to studies, throughout the 100 days of the jute growing season one hectare of jute plants can absorb almost 15 tons of CO2 from the atmosphere and release roughly 11 tons of oxygen. Compared to hemp and cotton jute has a far lower carbon footprint. In the processing, treatment, and finishing stages of manufacture, jute production utilizes fewer chemicals. Compared to cellulosic fibers like cotton, pesticide use is lower. In many cases, jute lessens deforestation because it is 100% recyclable and biodegradable.
Jute Products
- Rugs, carpets and mats are examples of home décor products made from jute.
- Furniture is made from jute.
- Shoes are made from jute.
- Packs, shopping bags and sacks are examples of packing materials made from jute.
- Geotextiles are made from jute.
- Automobile parts including door panels and dashboards are made from jute.
Leading Jute Companies in Bangladesh
originally considered as a source of raw material for packaging industries only. But it has now emerged as a versatile raw material for diverse applications, such as, textile industries, paper industries, building and automotive industries, use as soil saver, use as decorative and furnishing materials, etc. Several jute companies in Bangladesh play a crucial role in producing high-quality jute fibers, fabrics and diversified products. Some of the most prominent companies include:
1. Bangladesh Jute Mills Corporation (BJMC)
When the Bangladeshi government nationalized all of the nation’s jute mills in 1972 in an attempt to enact new socialist policies, the BJMC corporation was established. Adamjee Jute Mills is one of nine state-run jute mills in Bangladesh that the corporation is currently in charge of overseeing. The government announced intentions in 2016 to invest $340 million USD with Chinese support to improve the jute mills.
2. Akij Jute Mills Ltd.
Akij Jute Mills Ltd. being a part of the Akij Group has a rich history that dates back more than 50 years. From modest beginnings as a comparatively tiny jute merchant, Akij has developed into one of Bangladesh’s most reputable and esteemed industrial families with 24 major businesses involved in a wide range of operations and product categories. Their mill is well equipped to meet our clients’ evolving needs, producing 60,000 metric tons of jute yarn annually and 5 million pieces of standard bags including twill, sugar, flour, rice and vegetable oil treated sacking bags.
3. Janata Jute Mills Ltd.
Bangladesh-based Janata Jute Mills Ltd. is regarded as one of the biggest producers of jute goods. Since 1965, they have been operating. In addition to producing over 40,000 metric tons of woven and other jute goods, they export more than 100,000 metric tons of jute yarn annually. In addition, Janata Jute Mills Ltd. has received numerous national and international honors over the last 23 years, including an astounding 20 National Export Award. Look through their wide selection of jute products they produce everything you may possibly need.
4. Alhaj Jute Mills Ltd.
One of Bangladesh’s oldest and most reputable producers of jute products is Alhaj Jute Mills Ltd. Alhaj Jute Mills Ltd. was founded in 1967 and is based in Sharisabari, Jamalpur. It has 1600 employees, including 200 devoted, hardworking executives with extensive expertise.
Challenges and Future Prospects
Jute is a vital part of Bangladesh’s economy, culture and agriculture. It’s a major cash crop and a symbol of the country’s agrarian roots. Despite its strong legacy, the jute industry in Bangladesh faces challenges such as outdated machinery, lack of modernization and fluctuating market demands. However, with increased investment in technology, product diversification and international marketing, the sector has significant growth potential. With the global push for sustainability, Bangladesh’s jute industry stands at the threshold of a new era, ready to reclaim its position as a leading exporter of eco-friendly fiber based products. India and Bangladesh are the leading producers of jute. West Bengal, Bihar, Assam, Odisha and Meghalaya are the major jute-producing states. The leading world’s jute-producing countries are India, Bangladesh, China and Thailand.
