Ban jute sliver exports to curb misuse of incentives

The Bangladesh Jute Association (BJA) has sought a ban on exports of jute sliver, alleging that some mill owners are using the product to dodge restrictions on raw jute exports and pocket a 10 percent government cash incentive.

Raw jute exports have been effectively restricted since late 2025. Despite this, mill owners have been exporting jute sliver in large volumes, claiming an incentive meant for other products, the association’s Chairman Khandaker Alamgir Kabir said in a letter to the commerce secretary on July 15.

Tap Here to Add The Daily Star As A Trusted Source

The BJA stated that jute sliver is a basic industrial input, processed abroad into yarn and other finished jute goods, and is not a high-value product. The 10 percent cash incentive applies to exports of jute diversified products containing at least 50 percent jute.

It noted that jute sliver has no separate HS code and does not qualify as a “Jute Diversified Product” under the incentive rules, yet its exports continue to receive the incentive.

The Bangladesh Jute Mills Association and the Bangladesh Jute Spinners Association had jointly sought a similar ban in a letter to the then adviser for commerce, textiles and jute on October 28, 2025, according to the letter.

It added that the practice has allowed mill owners to control the jute market, depriving farmers of fair prices while draining government funds and harming the wider jute sector.

The commerce ministry amended the Export Policy 2024–27 in September 2025 to move raw jute onto the “conditional export” list, requiring prior approval for all shipments, in a bid to protect supplies for domestic mills and control rising prices.

At the time, mill owners backed the move to restrict exports, saying it served the national interest. Traders disagreed, warning it would hurt farmers by denying them fair prices without fixing the supply problem.

However, amid the opposing demands from the two sides, the ministry, in October 2025, allowed 12 firms to export nearly 3,000 tonnes of raw jute.