Why is the Indian Jute Mills Association asking for a ban on jute seed exports?

IJMA wants to ban jute seed exports to ensure sufficient raw material for domestic mills and prevent Bangladesh from using Indian seeds to compete with Indian jute goods.

How have Bangladesh's restrictions on raw jute exports affected India?

Bangladesh's decision has led to an acute shortage of raw jute in India, causing prices to surge and putting Indian jute mills under financial stress.

What is the concern regarding jute goods imported from Bangladesh?

Jute goods made in Bangladesh using Indian seeds are exported back to India at lower prices, harming domestic manufacturers and the industry's stability.

Home / Business and Economy / Jute Crisis: India Faces Raw Material Shortage

Jute Crisis: India Faces Raw Material Shortage

19 Dec, 2025

•

Summary

Bangladesh restricted raw jute exports, causing scarcity in India.
Indian jute mills face financial stress due to rising raw material prices.
India is a major supplier of high-yielding jute seeds to Bangladesh.

Jute Crisis: India Faces Raw Material Shortage

The Indian Jute Mills Association (IJMA) has formally requested the central government to implement an immediate ban on jute seed exports and impose regulations on imported jute goods. This appeal follows Bangladesh's decision on September 8 to restrict its outbound shipments of raw jute.

This restriction has created a severe scarcity of raw materials for Indian jute mills, consequently driving up domestic prices significantly. The IJMA highlighted that this situation, coupled with soaring costs, places Indian jute mills under considerable financial pressure, jeopardizing the stability of the jute value chain and the employment of numerous workers.

The association further pointed out an imbalance in bilateral trade, as Bangladesh, while limiting raw jute exports, remains heavily dependent on India for high-yielding variety (HYV) jute seeds. These seeds are then used to produce jute items that are subsequently exported to India at competitive prices, impacting local manufacturers.