For centuries, jute has been more than a commodity for Bangladesh; it has been the “golden fiber” that has sustained rural livelihoods, powered export earnings, and shaped national identity. Yet today, this heritage industry finds itself under siege. India, once Bangladesh’s largest market for jute and jute goods, is poised to continue and potentially intensify anti-dumping duties that have already choked exports and threatened the viability of an entire sector. The Directorate General of Trade Remedies (DGTR) recently released findings from its mid-term review, concluding that Bangladeshi exporters continued to dump jute products and recommending the continuation of duties ranging from $19 to $352 per tonne. For Bangladesh, the stakes could not be higher. 

India first imposed these anti-dumping duties in 2017, later expanding their scope to include jute sacking cloth. In June 2025, following appeals from the Indian Jute Mills Association and the AP Mesta Twine Mills Association, the DGTR initiated a mid-term review to examine whether duties should be enhanced. The findings are stark: Bangladesh’s jute goods exports to India fell by 18 percent year-on-year to 1.17 lakh tonnes in 2024-25, down from 1.43 lakh tonnes the previous year. Yet the DGTR argues that because Indian demand fell by 20 percent while imports from Bangladesh and Nepal declined by only 13 percent, foreign producers were gaining market share at the expense of Indian mills. This logic is as circular as it is convenient: punish the exporter for maintaining market share even as demand contracts.

The impact has been devastating. The ultimate issue influencing the debate is India’s imposition of anti-dumping duties on Bangladeshi jute products through 2027.  Exports of jute goods to India plummeted from Tk 275-300 crore annually to just Tk 50 crore. Benapole land port, which handles over 90 percent of Bangladesh’s jute exports to India, has witnessed a sharp decline in shipments. The Dhaka Chamber of Commerce and Industry has rightly termed this “iniquitous treatment” that could have “adverse multiplier impacts on Bangladesh’s local growers, producers, and exporters.” Behind these numbers are thousands of rural farmers, mill workers, and their families whose incomes depend on a sector that contributes not just to foreign exchange but to rural employment and environmental sustainability. What makes this particularly galling is the asymmetry. Bangladesh’s jute exporters receive only modest incentives: 3 percent for yarn and 5 percent for hessian, and their cost of production is higher than that of their Indian counterparts. As Tapash Pramanik, chairman of the Bangladesh Jute Spinners Association, has argued, the allegations of dumping are unfounded. India, meanwhile, enjoys a substantial trade surplus with Bangladesh. This is not a case of unfair competition; it is a case of protectionism dressed in the language of trade remedy.

A Three-Dimensional Strategic Response

Bangladesh cannot afford to be passive in the face of these measures. A strategic, multi-layered approach is required, one that combines diplomacy, domestic policy, and market transformation.

First, diplomatic and legal engagement. Bangladesh must vigorously contest the DGTR findings through all available channels, bilateral negotiations, WTO dispute settlement mechanisms, and coordinated action with Nepal, which faces similar duties. The Bangladesh Trade and Tariff Commission must be empowered with the technical expertise and resources to mount robust defenses against such investigations. Currently, Bangladesh’s trade defense system remains reactive compared to India’s proactive approach. This must change. The government should also leverage every diplomatic opportunity from SAARC platforms to bilateral summits to press for the removal of these protectionist barriers. 

Second, aggressive domestic demand creation. Bangladesh has a powerful tool at its disposal: the Mandatory Jute Packaging Act 2010. The government has already expanded its scope from six to nineteen commodities and is considering including cement. This must be fully enforced, not merely on paper. Domestic consumption of jute bags for food grains, sugar, and other essential commodities can absorb a significant portion of production, reducing export vulnerability. The proposed Tk 10,000 crore special fund for jute industry expansion, like the Export Development Fund, should be tracked. Additionally, the Tk 100 crore fund through the Jute Diversification Promotion Centre to revive jute bag usage is a welcome step that must be implemented with urgency. 
Third, and most critically, market diversification and product innovation. Bangladesh currently exports 282 types of jute goods to 118 countries. This is a foundation to build upon, not a ceiling to rest on. The government has rightly set an ambitious target of transforming the jute industry into a $5 billion to $7 billion export sector through modernization and diversification. To achieve this, several initiatives are essential, such as Geographic diversification. As India is issuing anti-dumping duties aggressively, Bangladesh must aggressively pursue opportunities in Africa, the Middle East, Europe, and North America, where demand for sustainable alternatives to plastic is growing exponentially. Product innovation might be another important strategy. From jute-based ink developed by Bangladeshi researchers, which could reduce production costs by up to ten times, to jute stick charcoal, geo-textiles, and high-end home decor, the possibilities are vast. Investment in research and development, design capabilities, and modern manufacturing technology is non-negotiable. On the other hand, value addition can play a crucial role. Bangladesh must move beyond raw jute and basic products like hessian and sacking bags. The country exported $148.48 million of raw jute in FY25, a significant portion of which could have been processed domestically to capture higher value. Every step up the value chain increases margins and reduces exposure to price competition.

A Call to Entrepreneurship

But policy alone is not enough. The revival of Bangladesh’s golden fiber ultimately depends on the ingenuity and ambition of its entrepreneurs. The jute sector has long been dominated by traditional mill owners and state-owned enterprises. It is time for a new generation of entrepreneurs to reclaim the brand. The global shift toward sustainability is not a threat to justice; it is an unprecedented opportunity. As the world turns away from single-use plastics and synthetic fibers, jute stands poised as the natural, biodegradable, and carbon-sequestering alternative. Bangladesh has the raw material, the expertise, and the heritage. What it needs now is the vision to position “Made in Bangladesh” jute products as premium, sustainable, and desirable. Young entrepreneurs must be encouraged to enter the sector through startups, e-commerce platforms, and innovative design-led ventures. The government should facilitate access to finance, technology, and global markets. Brand Bangladesh must become synonymous with quality jute products, not as a cheap substitute, but as a superior choice. 

Golden fiber has weathered many storms before. It survived the rise of synthetics, the decline of state mills, and the vagaries of global markets. It will survive India’s anti-dumping duties too, but only if we respond with strategy, not resignation; with innovation, not inertia; with unity, not fragmentation. The time to act is now. The entrepreneurs of Bangladesh must rise to reclaim the legacy of the golden fiber and weave a new chapter of sustainable prosperity.

Source: Eurasiareview