HS Code:
Jute and other textile bast fibers, raw or retted (HS Code: 5303), encompass natural fibers derived from plants like jute, kenaf, and flax, primarily used in the production of textiles, ropes, and other industrial products. Jute, often referred to as the 'golden fiber,' is one of the most affordable natural fibers and is widely used for making burlap, sacks, and eco-friendly packaging materials. These fibers are predominantly cultivated in tropical and subtropical regions, requiring specific climatic conditions for growth. The trade of raw or retted jute and bast fibers is significant in countries with strong agricultural bases and historical ties to textile industries.
Total Trade Volume
Approximately $500 million USD
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC)
$320 million USD
64% of total trade of total trade
Increasing
$100 million USD
20% of total trade of total trade
Stable
$30 million USD
6% of total trade of total trade
Increasing
$15 million USD
3% of total trade of total trade
Stable
$10 million USD
2% of total trade of total trade
Decreasing
Average Rate
5.2% ad valorem
Highest Rate
15% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like SAFTA and certain WTO provisions for LDCs)
Rising demand for sustainable materials
Increased global demand for jute as an eco-friendly alternative to synthetic fibers, boosting exports from producing countries.
2021-2023
Fluctuating raw material prices
Price volatility due to weather conditions and production challenges affects trade stability and profitability for exporters.
2020-2022
Technological advancements in processing
Improved retting and processing techniques are enhancing fiber quality, leading to higher market competitiveness.
2019-2023
The government of Bangladesh introduced a cash incentive scheme for jute exporters to boost foreign exchange earnings and support farmers.
January 2023
Expected to increase export volumes by 10-15% over the next two years, strengthening Bangladesh's dominance in the market.
The European Unionโs Green Deal policies are promoting the use of biodegradable materials, leading to higher demand for jute products.
July 2022
Positive for jute-exporting countries, with a projected rise in demand from European markets by 20% by 2025.
India revised its National Jute Policy to mandate the use of jute in packaging for certain agricultural products, supporting domestic production.
March 2022
Reduced exportable surplus from India, potentially increasing global prices and benefiting other exporters like Bangladesh.