New Delhi, Jan 4 (NationPress) Bangladesh's jute industry is gradually diminishing its competitive advantage in the global arena as elevated production costs, antiquated machinery, and poor productivity persist, according to the Chairman of the Bangladesh Jute Spinners Association (BJSA), Tapash Pramanik.

In an exclusive interview with ‘The Daily Star’, Pramanik pointed out that jute mills in Bangladesh are facing challenges in competing with companies from other nations that have modernized their facilities and achieved cost reductions through enhanced technology and operational efficiency.

He mentioned that the high costs of energy, substantial interest rates on loans, and outdated equipment have inflated the prices of jute products, undermining their competitiveness against synthetic fibers and other natural substitutes.

Despite once being labeled the “golden fiber” of the region, jute's significance has diminished as the industry has struggled to adapt to evolving global market trends.

“Currently, most jute exports still rely on traditional items such as yarn, hessian, and sacks, while international buyers are increasingly seeking diversified, value-added, and eco-friendly jute products,” he emphasized.

“Bangladesh has lagged in research and development, product innovation, and the commercial application of new jute-based goods,” he remarked.

He noted that the industry is often viewed as a legacy sector requiring protection, rather than as a modern agro-industrial value chain needing reconstruction for sustainable growth.

Despite the environmental benefits of jute, he indicated that the industry has not been able to reclaim its former prominence due to structural deficiencies, policy shortcomings, and market-related obstacles.

“Government initiatives have been sporadic and short-lived, failing to bring about significant change,” he added.

In contrast to the readymade garments (RMG) sector, Pramanik highlighted that RMG has become Bangladesh's leading export industry due to consistent policy backing, state-of-the-art machinery, improved productivity, accessible financing, and ongoing research and development.

These elements have enabled garment exporters to quickly integrate into global markets, yielding higher profit margins.

In comparison, the jute industry remains entrenched in low-value bulk exporting, outdated technologies, financial strain, and inadequate institutional support.

Consequently, export revenues from jute and jute products have stagnated between $900 million and $1 billion for over a decade.