Even without the UN Plastic Agreements, global reliance on single-use plastic bags declines, the potential for revitalising of the global jute industry grows stronger—and the “golden fibre” from Bengal may indeed be poised for a meaningful comeback.
As progressive policies are making a real impact. For instance, Sweden saw plastic bag usage plummet from 74 to 17 per person between 2019 and 2023, largely due to a plastic bag tax—though that tax was recently abolished, raising concerns about reversal.
Looking ahead, California has advanced a statewide ban on all single-use plastic shopping bags, starting in 2026. These kinds of shifting regulations reveal growing momentum in global markets toward eco-friendly packaging—creating a clear opening for natural alternatives like jute.
Bangladesh accounts for around 58% of global jute production so it is a global leader in the sector, so we need to ask ourselves is the revival visible and viable in their jute sector? From the outset, it does have some prominent advantages and innovations.
For example with the Sonali bag. It is developed from jute cellulose, a biodegradable bag can decompose in three months and thus a sustainable alternative to polythene.
Scientists have also developed a host of innovations from jute-based PPE to corrugated building materials (“Jutin”) thus creating new commercial uses. This with its carbon benefits as jute cultivation can absorb up to 15 tons of CO₂ per hectare annually, offering strong environmental credentials.
There are several levels of support the sector gets which should be noted. Bangladesh government enforces mandatory jute packaging for commodities like rice and fertilisers, and various jute-friendly laws and incentives are in place—e.g., Jute Wrap Act, National Jute Policy domestically, giving institutional support to the sector via policies and Acts.
Training Initiatives include program by Swisscontact and Akij Bashir Group focusing on skills development within jute mills to boost productivity and quality.
There is financial & structural support from the Bangladesh Bank is facilitating loan restructuring with grace periods to support jute producers, alongside marketing schemes targeting women entrepreneurs—thus substantial funding is being injected into this sector.
Furthermore, we have private investments in so far as 16 previously closed state-owned mills have been leased to private investors and some are restarting production. The FBCCI (Federation of Bangladesh Chambers of Commerce and Industries) is spearheading efforts to revitalise the sector through public–private collaboration via trade advocacy.
And finally there is export & branding push as Bangladesh government is pushing to diversify jute products—handicrafts, composites, fashion items—and initiate global marketing and e-commerce strategies as a result.

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Despite all this promise and behind the challenges, there are hurdles to overcome:
The outdated technology means many mills rely on old machinery, with low productivity and inconsistent quality. As a result in terms of price competition, Jute is labor-intensive and costlier than synthetic alternatives, posing a competitive challenge. The export complexity of logistics, bureaucratic delays, weak branding, and lack of global marketing reduce competitiveness. And the financial constraints mean many producers struggled with loans, particularly during closures, so bank support helps but needs scaling up
So is the revival realistic? Yes—it can be, if momentum continues to be harnessed effectively. The decline of plastic opens global market space for jute. Bangladesh has the natural resources, labor base, and innovation potential to capitalise on this. With the multiplier benefits of reviving jute lifting rural communities, creates jobs, empowers women-led businesses, and strengthens the nation’s economic fabric.
So we need policy and innovation synergy with coordinated policy support, R&D, modernisation of mills, branding, export facilitation, and digitalisation are essential—and increasingly underway. As eco & ESG alignment across sustainable supply chains gaining traction, jute fits the global demand for environmental, social, and governance-aligned materials.
.In short the jute industry has some strengths, challenges and opportunities. While it is an innovator in biodegradable jute products, its large scale and outdated machinery, does make it cost competitive. This all along whilst the shift in global regulations favours sustainable packaging increasing.
It has strong economic and environmental credentials like with carbon sequestration, yet export inefficiencies and low branding, it risks missing the rising demand for eco-products in EU, North America, and luxury markets. It has had financial difficulties with mill closures but government policies, financial support and private investment with digital marketing, e-commerce, startup ecosystem, skill development and institutional backing should do the trick with training initiatives helping with labor costs and quality control variability and export diversification, with new high-value applications (PPE, composites)
So the jute industry in Bangladesh stands at a crossroads—but all signs point to a feasible and promising revival. The global move away from plastics, combined with innovation like the Sonali bag and increasing institutional support, have set the stage. The key now is maintaining momentum across policy, technology, skills, branding, and export strategy.
Bangladesh could very well transform the “golden fibre” into a linchpin of sustainable, inclusive growth—and redefine its role in the global green economy.
