Bangladesh Jute Farmers Struggle as Prices Tumble Amid Export Restrictions

Dhaka, August 24, 2026 — Adverse weather has reduced jute yields this year, while export restrictions have weakened demand and pushed down prices, raising fears of losses among Bangladesh's jute farmers. Prices of good-quality raw jute have fallen by around Tk 1,200 per maund over the past one-and-a-half months, with farmers unable to recover production costs at current market rates.

📊 The Numbers

• 🌿 Jute cultivation target: 708,282 hectares (2026-27 season)
• 💰 Production target: 85.21 lakh bales
• 📉 FY2025-26 cultivation: 2.31% lower than FY2024-25
• 📉 Production decline: 1.89% year-on-year
• 💰 Current price (good quality): Tk 4,000/maund (max)
• 💰 Last year price: Tk 4,500/maund
• 💰 Price drop: ~Tk 1,200/maund in 1.5 months
• 💰 Production cost increase: Tk 4,000-5,000/bigha vs last year

🌧 Weather Impact on Yields

Several farmers in Faridpur, Rajbari, and Magura reported that yields per bigha had declined this season. Excessive rainfall forced many to harvest jute 15 to 20 days earlier than usual, resulting in yields falling by two to four maunds per bigha. Farmers had expanded jute acreage after receiving good prices last year, but the weather disrupted their plans.

Sukontho Pal, a jute farmer from Boalmari upazila of Faridpur, said: "Good-quality jute is now selling for a maximum of Tk 4,000 per maund, whereas I received around Tk 4,500 last year. Production costs per bigha have increased by Tk 4,000 to Tk 5,000 from last year. At the current market price, we cannot even recover our production costs."

Md Siam Mallik, a farmer in Baliakandi upazila of Rajbari, blamed excessive rainfall for lower yields. "Most farmers were forced to harvest jute 15 to 20 days earlier than usual due to excessive rainfall. As a result, yields fell by two to four maunds per bigha," he said.

🚧 Export Suspension to India

Traditionally, lower supply supports higher prices, but farmers and traders said the suspension of raw jute exports to India had reduced demand in the local market. With export channels closed, the domestic market is oversupplied relative to demand, pushing prices down even as yields decline. This double blow — lower production and lower prices — is creating a severe financial squeeze for jute farming households that depend on the crop for their annual income.

💰 Traders Under Pressure

Md Mahmudur Nabi, a jute trader in Pabna Sadar upazila, said farmers and traders were both suffering due to low prices. "It costs us more than Tk 4,200 to buy a maund of jute from the market and transport it to a jute mill. But mill owners are unwilling to buy jute at this price and want to purchase it at even lower rates," he said.

Md Aktaruzzaman Chan, a trader at one of Faridpur's largest jute markets, said prices had become unpredictable. "We cannot understand the market trend this year. Jute that was selling for Tk 5,200 per maund suddenly fell to Tk 3,500. It has recovered somewhat to Tk 3,800, but we do not know whether prices will rise further," he said.

👥 Farmer Economics

Naba Kumar Kundu from Magura Sadar upazila said farmers earned Tk 12,000 to Tk 15,000 per bigha last year when jute prices were high. "The situation is completely different this year. It is difficult for farmers to make a profit unless jute prices remain above Tk 4,500 per maund," he said. The current price of Tk 4,000 represents a significant loss for farmers who invested in expanded cultivation based on last year's favourable prices.

🌐 Strategic Context for Bangladesh's Export Economy

The jute sector's struggles highlight a recurring challenge for Bangladesh's agricultural export economy. Jute — once called the "golden fibre" of Bangladesh — has seen its export significance decline over decades, even as global demand for sustainable, biodegradable fibre products has grown. The current price crisis, driven by export restrictions and weather-related yield declines, further weakens the sector's contribution to the country's export portfolio.

For the BNP government's export diversification agenda, the jute sector represents both an opportunity and a warning. The opportunity: global demand for eco-friendly jute products (bags, packaging, textiles) is growing as sustainability regulations tighten in EU and US markets. The warning: without resolving trade barriers with India, investing in yield improvement, and supporting farmers through price volatility, Bangladesh risks losing its jute cultivation base — a loss that would be difficult to reverse once farmers shift to more profitable crops. The government's broader agricultural reform agenda, including the Farmer Card distribution and solar irrigation pump programme, should be extended to include jute-specific support measures that stabilise farmer incomes and maintain the production base for this strategically important export commodity.

The Commerce Minister's recent discussions with India about reopening border haats and lifting trade restrictions could provide a pathway to resuming jute exports — but until that happens, jute farmers will continue to face the double burden of declining yields and falling prices, with limited options for alternative income. The BNP government's ability to address this crisis will be an early test of its commitment to agricultural sector reform and export diversification beyond the RMG-dominated export portfolio that has defined Bangladesh's trade profile for decades.