Bangladesh will discourage exports of raw jute and expand incentives for value-added jute products to strengthen the domestic industry and increase export earnings, Textiles and Jute State Minister Shariful Alam said on Thursday.
He said the government plans to offer tax relief and cash incentives for processed and finished jute goods to encourage investment in higher value products and reduce dependence on raw jute exports.
The announcement came at a press briefing in Dhaka ahead of National Jute Day 2026, which will be observed on Thursday under the theme “Build the jute industry, create employment”.
Shariful Alam said Bangladesh produced around 13.80 lakh tonnes of jute in the 2024-25 fiscal year and earned about $820.08 million from jute and jute products exports.
Of the total export earnings, raw jute accounted for $148.48 million while jute goods generated around $671.60 million, highlighting the higher value potential of processed products.
He said excessive raw jute exports often create shortages of raw materials for domestic mills, while countries such as India use Bangladeshi jute to produce higher-value products and earn more foreign currency.
The government is therefore focusing on expanding production of diversified jute goods to increase export earnings and employment, he said.
Jute and jute products generated $418.69 million in export earnings between July and December of the current fiscal year, higher than the same period a year earlier, according to Export Promotion Bureau data cited at the briefing.
Shariful Alam said the government is also working to revive the jute industry by reopening closed mills and leasing state-owned mills under Bangladesh Jute Mills Corporation to private operators.
Nine leased mills are currently operating with around 7,200 workers, contributing to production and employment, he said.
The government has also taken short and medium-term measures to modernise the sector, including digitising 15 types of licences under the Department of Jute, revising the Jute Act and introducing incentives for the industry.
Long-term plans include creating jute industrial clusters, strengthening collaboration between industry and academia, and promoting the global brand “Golden Fibre of Bangladesh”.
Shariful Alam said enforcing the Mandatory Jute Packaging Act 2010 has already created domestic demand for about 150 crore jute sacks annually, generating a market worth around Tk8,000-9,000 crore.
The government is also implementing projects to support jute farmers by distributing seeds, fertiliser and farming equipment to about 6.25 lakh growers each year.
As part of the National Jute Day celebrations, a nine-day jute and diversified jute products fair will be held at Bangladesh Shilpakala Academy from March 6 to March 14, the minister said.
