Jute used to be everything. Back in the 1970s, it accounted for nearly 90% of Bangladesh’s export earnings and put the country on the global trade map. Today that share has slipped below 2%. But that shift doesn’t mean jute is finished. It means the industry is due for a reset, and people who understand the current reality can build something real here. This guide covers the state of jute export in Bangladesh right now, which products actually move, who’s buying, and how you start a business in this space.

Quick answer: Jute export in Bangladesh earned $820.16 million in FY 2024-25, with Bangladesh shipping jute goods to 138 countries and raw jute to 30. Key products include jute yarn, hessian cloth, raw jute, and jute bags. Turkey, China, the EU, India, and the USA are the top destinations. To start, register a company, get an Export Registration Certificate, join a jute trade body, and find buyers via trade fairs and B2B platforms.

Bangladesh’s golden fiber, where it stands right now

Here’s the honest picture. Jute exports peaked at $1.16 billion in FY 2020-21, then fell for four straight years. By FY 2024-25, the sector earned $820.16 million, down from $855.23 million in FY 2023-24 and $911.51 million in FY 2022-23, according to Export Promotion Bureau (EPB) data.

But early FY 2025-26 numbers look better. Between July and November 2025, jute goods exports hit $346 million, a 1.36% year-on-year uptick after years of straight decline. Tapash Pramanik, chairman of the Bangladesh Jute Spinners Association (BJSA), put it plainly: “We see increased orders from Turkey and some other countries. This has created hopes of revival.”

Bangladesh still ships jute goods to 138 countries and raw jute to 30, according to Textiles and Jute Minister Khandaker Abdul Muktadir, who confirmed these figures in Parliament in April 2026. The volume of jute products exported in FY 2024-25 was 751,739 metric tons. That’s not a dying industry. That’s an industry that went off track and needs better technology, smarter product diversity, and cleaner policy execution.

Jute also features alongside garments and leather in the top industries for foreign investment in Bangladesh precisely because of Bangladesh’s raw material advantage and the global pivot toward eco-friendly packaging.

Top jute export products

What you can actually export ?

Jute isn’t just sacks and bags. The product range is much wider, and different categories respond to very different global markets.

The main export categories with approximate 2024 trade values:

  • Raw jute: $243 million. Sold mainly to China, India, Iran, Pakistan, and Turkey for local processing into yarn and cloth.
  • Jute yarn and twine: $187 million. Turkey is the single biggest buyer, using it for carpet and rug manufacturing. Monthly average export was 40,000 tonnes at peak.
  • Hessian cloth (burlap fabric): $111 million. Popular in EU and UK markets for bags, upholstery, packaging, and home décor.
  • Jute geo-textiles: $87 million. Used in road construction, erosion control, and agriculture globally.
  • Jute felt: $76 million. Used in flooring underlay and automotive sectors.
  • Jute bags and retail products: Fast-growing due to plastic bans in over 127 countries.

Beyond these, Bangladesh produces close to 300 Jute Diversified Products (JDPs): home textiles, furniture accessories, gardening items, floor covers, office stationery, paper packaging, fashion accessories, and even footwear. The JDP segment is where the real margin growth lives and it’s still underdeveloped relative to its potential.

Top markets and where demand is coming from

Bangladesh’s jute market picture is geographically spread. For raw jute, the main buyers are China, India, Iran, Spain, Belgium, USA, UK, Italy, Turkey, and Pakistan. For processed goods, major destinations include Turkey, China, Belgium, USA, UK, Netherlands, Italy, India, Egypt, and Japan.

Turkey deserves specific attention. It’s the largest buyer of Bangladesh’s jute yarn, mainly for its carpet and rug industry. When Turkish demand slumped over the past few years, it dragged Bangladesh’s entire yarn sector down. That recovery in Turkey is the primary driver behind FY 2025-26’s early positive numbers.

Europe is steadily growing as a destination for value-added jute. Potato bags, hessian retail bags, nursery cloth, and decorative yarn in mini spools are gaining ground in EU and UK markets. The EU’s Single-Use Plastics Directive is quietly pushing buyers toward natural fiber alternatives. Bangladesh, as the world’s largest jute exporter by value, sits directly in line for that demand shift.

Jute export process

How to start a jute export business in Bangladesh

Step 1, register your business and get the core licenses

You can’t legally export without a registered company. A Private Limited Company is the most common structure. If you’re navigating this as a new founder, our guides on how to get started are linked below.

Our guide on starting a business in Bangladesh as a foreigner and the full breakdown on company types and restrictions for foreigners in Bangladesh walk through name clearance, RJSC filing, and compliance.

Once incorporated, the licenses you’ll need:

1. Export Registration Certificate (ERC): Apply via CCI&E’s Online Licensing Module at olm.ccie.gov.bd, under the Ministry of Commerce. You’ll need your trade license, TIN, bank solvency certificate, NID, and a membership certificate from your relevant jute trade association.
2. Tax Identification Number (TIN): Required before any bank account or ERC application.
3. VAT registration (BIN): Needed if your turnover crosses the threshold or you’re doing processing.

Current account with an authorized dealer bank: Your bank handles export proceeds, issues Letters of Credit, and processes your EXP form. Getting a business bank account in Bangladesh sorted early saves delays later.

Step 2, join the right jute trade body

Your trade body membership is part of your ERC application, so you need this before you apply, not after. Three main bodies:

  • BJMA (Bangladesh Jute Mills Association): For sacking and hessian cloth manufacturers.
  • BJSA (Bangladesh Jute Spinners Association): For yarn and twine producers, 77 member mills.
  • BJGEA (Bangladesh Jute Goods Exporters Association): For general jute goods exporters and buying houses.

Membership also gets you listed in buyer-facing directories and access to government advocacy meetings, which matter when policy changes hit pricing.

Step 3, source your jute

Bangladesh grows Tossa and White jute, mainly in Faridpur, Sylhet, Rangpur, and Noakhali. Harvesting runs July to September. If you’re not manufacturing, you can source finished products from private mills concentrated in Narayanganj, Khulna, and Dhaka.

Watch raw jute pricing. In FY25, production fell 18% year-on-year to 75.65 lakh bales per Department of Agricultural Extension data. Middlemen hoarding during harvest seasons pushed prices sharply higher. A fixed supply agreement with a reliable mill is worth more than chasing spot prices.

Step 4, find buyers

B2B platforms like Alibaba, Global Sources, and EC21 help you get discovered. Real volume in jute usually comes from trade fairs, BJGEA-organized buyer delegations, and direct outreach to carpet manufacturers in Turkey, packaging importers in Belgium, and retailers in the UK and Germany.

One move most new exporters skip: get a DUNS number from Dun & Bradstreet for international supplier credibility. Major European and US importers run supplier verification through D&B. Without a profile there, your company doesn’t show up in their due diligence.

Step 5, documents and shipping

Your standard export document pack per shipment:

  • Commercial Invoice and Packing List
  • Bill of Lading (sea) or Air Way Bill (air)
  • Certificate of Origin from EPB or a recognized Chamber of Commerce, depending on destination and buyer requirements. 
  • EXP Form (Bangladesh Bank foreign exchange declaration)
  • Quality/Phytosanitary Certificate if required by the destination country

Most jute shipments leave through Chattogram Port. Read buyer LC terms carefully. Discrepancies on jute shipments can delay payment by 30 to 45 days and attract fees.

For working capital, especially if you’re processing raw jute before export, getting a loan from a Bangladeshi bank is realistic if your documents are solid. Specialized banks in Bangladesh like Bangladesh Krishi Bank offer sector-specific agro-industrial credit. For LC processing and trade finance, our guide to commercial banks in Bangladesh helps you compare the right partner.

Challenges you’ll actually face

Honestly, jute isn’t an easy entry right now. Here’s what actually hits new exporters:

  • Raw jute price volatility. Hoarders buying up supply during harvest season drive prices up fast. If you’ve fixed your export price and your raw material cost spikes, your margin disappears.
  • High financing costs. Interest rates on jute mill loans are running at 15.5%, which BJSA chairman Pramanik called “difficult to conduct business under.”
  • Sector underutilization. Only 24 of 77 jute yarn spinners under BJSA are currently operating at full capacity. Finding a reliable processing partner takes real due diligence.
  • India’s anti-dumping duties on Bangladeshi jute goods have cut off what was a large trading corridor. That market won’t come back quickly.
  • Mandatory Jute Packaging Act enforcement gap. The law requires 19 commodities to use jute packaging. In practice, enforcement has been inconsistent for over a decade.

If you’re entering as a buyer and re-exporter of finished goods, some of these risks reduce. But as a processor, go into this with eyes open and financing confirmed before raw material commitments are made.

Why 2026 might be the right time to enter

The global jute market was valued at $2.8 billion in 2024 and is projected to reach $4.6 billion by 2034, growing at roughly 5.7% annually. The driver is plastic regulation. Over 127 countries have some form of plastic bag restriction. The EU packaging sustainability rules are tightening. The interim government of Bangladesh began enforcing its single-use plastic ban from October 2024, the first real enforcement push in years.

If the Mandatory Jute Packaging Act gains teeth domestically, that unlocks a large new layer of local demand. BJMA has noted the domestic jute market could multiply significantly with proper enforcement.

Bangladesh has more jute export infrastructure than any other country. It already ships to 138 countries. The sector is battered but not broken, and entrants in Jute Diversified Products, especially geo-textiles, retail bags, and European home décor segments, are finding margins that basic yarn exporters can’t access.

Key Insights

  • Jute export earned $820.16 million in FY 2024-25, a 4.10% decline, but the sector showed 1.36% year-on-year growth in the first five months of FY 2025-26, driven by recovering Turkish demand.
  • Bangladesh ships jute goods to 138 countries, with Turkey the single biggest buyer of jute yarn for carpet manufacturing, followed by China, Belgium, UK, and USA.
  • Jute yarn dominates by value at $187 million, but the highest-margin opportunity is in Jute Diversified Products (JDPs) like geo-textiles, fashion bags, and home textiles, where Bangladesh is still underdeveloped.
  • Three trade bodies matter: Bangladesh Jute Association (BJA), BJMA (sacking and hessian mills), BJSA (yarn and twine spinners), and BJGEA (general goods exporters). Membership is required as part of the ERC application.
  • The global jute market is projected to grow from $2.8 billion in 2024 to $4.6 billion by 2034, driven primarily by plastic bans across 127+ countries.
  • Mandatory Jute Packaging Act (2010) covers 19 commodities including rice, wheat, sugar, and fertilizer, but has been poorly enforced. Stricter enforcement would materially boost domestic demand.
  • Real challenges: raw jute prices are volatile due to hoarding, bank loan rates sit at 15.5%, and only 24 of 77 yarn spinners currently operate at full capacity.

Frequently Asked Questions

How much does it cost to start a jute export business in Bangladesh?

Starting as a buying house or re-exporter requires roughly $15,000 to $40,000 in working capital for company setup, licenses, trade body membership, and first shipment costs. Setting up your own processing unit or mill partnership starts at $200,000 or more depending on scale. Licensing and ERC fees are relatively low; the main capital need is sourcing inventory and financing trade.

What’s the most profitable jute product to export?

Jute Diversified Products (JDPs) including geo-textiles, fashion bags, retail tote bags, and decorative home textiles carry margins 3 to 5 times higher than bulk yarn or raw jute. Jute bags for European retailers driven by plastic bag bans are the fastest-growing segment right now. Bulk yarn and hessian are high volume but thin margin.

Which country imports the most jute from Bangladesh?

Turkey is the largest buyer of Bangladesh’s jute yarn and twine, mainly for its carpet manufacturing industry. For raw jute, China and India top the list. For processed jute goods overall, major buyers include Turkey, China, Belgium, USA, UK, Netherlands, India, Egypt, and Japan. Bangladesh ships to 138 countries in total for jute goods.

Do I need a specific license to export raw jute vs processed jute?

The core license, the Export Registration Certificate (ERC), covers both. However, the trade body membership required differs. Raw jute exporters typically join BJMA or a general Chamber of Commerce. Yarn exporters join BJSA. Jute goods exporters join BJGEA. Some raw jute shipments may also require a Phytosanitary Certificate from the Department of Agricultural Extension depending on the destination country’s import rules.

How do I find international buyers for jute products?

Verified channels include Alibaba, Global Sources, and EC21 for online discovery. Trade fairs like DIFE expos and BJGEA-led buyer meetings attract real procurement teams. Direct cold outreach to carpet manufacturers in Turkey, packaging companies in Belgium, and retail importers in the UK and Germany converts at a higher rate than passive platform listings. A DUNS number from Dun & Bradstreet boosts your credibility in formal procurement checks.

What is the Mandatory Jute Packaging Act 2010 and does it help exporters?

The Mandatory Jute Packaging Act 2010 requires 19 commodities, including paddy, rice, wheat, corn, sugar, and fertilizer, to be packaged in jute sacks instead of plastic or synthetic bags. If enforced strictly, it creates massive domestic demand for jute sacking, which stabilizes raw jute pricing and mill operations. Enforcement has been inconsistent since 2014, but the interim government’s October 2024 plastic crackdown is the most serious push in years.

Can foreigners own a jute export business in Bangladesh?

Yes. Foreign nationals can own 100% of a Bangladeshi private limited company that exports jute goods. You’ll need RJSC registration, trade license, TIN, VAT registration, and BIDA notification if you’re bringing in foreign capital. BJGEA associate membership is available to foreign-owned companies meeting the documentation criteria. Most foreign founders work with a local team for raw material sourcing, mill relationships, and banking introductions.

What are the key export documents for a jute shipment?

Every jute shipment requires a Commercial Invoice, Packing List, Bill of Lading (or Air Way Bill for air shipments), Certificate of Origin from BJMA, BJGEA, or the Chamber of Commerce, and an EXP Form as Bangladesh Bank’s foreign exchange declaration. Some destination countries require a Phytosanitary Certificate or specific quality inspection certificate. Always align all documents exactly with the buyer’s Letter of Credit terms before loading.

What’s the difference between BJMA and BJSA?

BJMA (Bangladesh Jute Mills Association) represents manufacturers of sacking and hessian cloth, the traditional packaging and industrial fabric segments. BJSA (Bangladesh Jute Spinners Association) represents yarn and twine producers, with 77 member mills focused mainly on carpet yarn for Turkey and rope twine for the Middle East. If you produce or source yarn for export, BJSA is your body. If you’re in sacking or hessian, BJMA is where you belong.

Is jute export still profitable in 2026 given the recent decline?

Yes, depending on what you export. Basic yarn and hessian face thin margins and pricing pressure. But Jute Diversified Products, geo-textiles, eco-friendly retail bags, and specialty home textiles carry healthy margins in EU and North American markets. The sector is recovering after four years of decline, and the global shift away from plastic packaging is a structural tailwind. Entry in 2026 with a focus on value-added products is better timed than 2021 when commodity volumes were crowded and prices peaked.

Final Thoughts

Jute is a sector where the fundamentals are actually improving even as the headline numbers look rough. Four years of decline, yes. But a global market growing toward $4.6 billion, plastic bans creating real end-market demand, and Bangladesh holding more export infrastructure than any country on earth. That’s not a story of permanent decline. That’s a sector that lost its way on basic commodities and has a clear path back through value-added products.

If I were starting a jute business today, I’d skip the competition on bulk yarn and sacking. I’d go straight into JDPs for European buyers: geo-textiles, retail bags, and home décor items where the margins are 3 to 5 times what you get on basic products. Get one anchor buyer. Deliver on time. Build from there.

The golden fiber isn’t finished. It just needs smarter exporters in it.