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However, Bhuiyan, also a former senior official of the Bangladesh Jute Association (BJA), said, “This is a wrong assumption. Rice millers are unlikely to use jute bags.”

He said the volume of raw jute shipments was insignificant and the measure will only hit farmers and benefit traders and millers.

“It is a suicidal decision. There is still jute in farmers’ fields, and they will be deprived of fair prices amid export restriction,” he said.

Raw jute exports dipped 36 percent year-on-year to 8.62 lakh bales in the fiscal year 2024-25, the lowest in three years, according to data by the Department of Jute.

Bhuiyan said exports were restricted in the past and claimed that the measure did not yield desired results.

“If millers in India can buy raw jute for $800-900 per tonne Free on Board (FOB) from us and take the shipment through sea and sell it in the domestic and international market, why can’t our millers do the same,” he said, adding that the price of raw jute would be over $700 a tonne in the domestic market.

However, Tapas Pramanik, chairman of the Bangladesh Jute Spinners Association, said, “This is the right decision for the national interest.”

“It is a luxury to export when you have a shortage in the domestic market,” he said, adding that the country requires 75 lakh bales, including 55 lakh bales for use in mills and other usage.

The BJSA chairman also said raw jute shipment accounts for below 10 per cent of total production. “So it is not right that jute prices will slump if exports are restricted. Hoarders are taking advantage of the shortage and exports,”

Jute and jute goods exports have been falling after shipments hit $1.16 billion, the highest on record in the fiscal year 2020-21. Exports started falling in the subsequent years and the overall shipment value dropped to $820 million, the lowest in six years, according to data from the Export Promotion Bureau.

However, exports have shown signs of picking up in the current fiscal year 2025-26, marking a 7 percent year-on-year increase to $118 million in July-August. The shipment value of raw jute accounted for 15 percent of the total.