Jute goods exports have started to recover after four years of consistent decline, as demand for the once golden fibre in major markets has increased, raising hopes among millers of a sustained rebound.

Bangladesh recorded 1.36 percent year-on-year growth, reaching $346 million in exports during the July-November period of the fiscal year (FY) 2025-26, according to Export Promotion Bureau.

Exporters said the recovery in demand in Turkey, the key market for jute yarn, along with the prospect of interest rate cuts by major economies, easing tensions in the Middle East, and ongoing talks to end the Russia-Ukraine war, has created optimism about economic prospects.

Recovery began in July, following an overall export decline of 4 percent in FY2024-25, after a consistent drop in shipments from a historic high of $1.16 billion in FY2020-21.

"We see increased orders from Turkey and some other countries. This has created hopes of revival," said Tapash Pramanik, chairman of the Bangladesh Jute Spinners Association (BJSA), the trade body of yarn producers.

Millers said the sector suffered from sluggishness due to the continued decline in exports.

"There had been frustration among millers in the sector. It was difficult to sell jute goods," Pramanik said. "Now we see improvement in sales of hessian, sacking and yarn."

Between FY2021 and FY2025, the jute industry, built on locally produced natural fibre, lost 29 percent of exports, as many buyers switched to synthetic and regenerated cotton yarn due to high domestic prices of the fibre.

Industry stakeholders said demand for jute yarn began to decline after the Covid-19 pandemic in 2021, when prices of locally grown raw jute shot up to Tk 5,500-Tk 6,000 per maund (around 37 kilogrammes).

This year, jute prices are Tk 4,200-Tk 4,300 per maund and have remained stable after the government in September restricted raw jute exports to contain prices that had risen owing to a fall in production.

"Because of the export restriction, we have been able to export jute goods at almost stable prices. On the other hand, as prices are high in India, exports from there have reduced," said Helal Ahmed, deputy managing director of AkijBashir Group, one of the leading jute exporters.

He added that the imposition of a 50 percent reciprocal tariff on India's exports by the United States created scope for local jute goods manufacturers to expand in the American market.

"Shipment of various types of fabric has increased in the US," he said.

With Turkey being the major buyer of carpet yarn and rope twine, the Netherlands, Italy, China, India, Uzbekistan, Indonesia, Tanzania, Sudan and countries in the Middle East have also been major buyers.

"There is demand for potato bags, hessian bags, linoleum cloth, nursery cloth and diversified yarn/twine in mini spools and balls for decorative and gardening purposes in the European Union and the United Kingdom," he said.

"We expect the current trend to continue," Ahmed added. BJSA Chairman Pramanik said monthly average exports were 40,000 tonnes last year, and the volume of shipments is expected to rise this year.

Abdul Barik Khan, secretary general of the Bangladesh Jute Mills Association (BJMA), said exports are growing in some new markets and called for government policy support to facilitate further growth.

"Low-cost loans and incentives to explore new markets will be helpful," he said.

Pramanik added that the interest rate on loans is very high up to 15.5 percent.

"It is difficult to conduct business while paying such high interest on loans," he said.

"The government should engage with us and provide policy support so that we can increase exports."