Bangladesh’s exports of jute and jute goods decreased dramatically in the current fiscal 2013-14 due to a depreciation of Indian rupee and sluggish demand in the world market. Export earnings have declined by more than 30 per cent. 

India which used to buy about 60 per cent of the total raw jute from Bangladesh cut the level of its imports in the last few months. Iran has also slashed buying jute due to economic sanctions imposed by the western countries. In addition, the prevailing sour relations with Pakistan and the instability in Syria and Egypt, which are traditionally jute and jute goods importers, caused a decline in exports. 

China, Vietnam and European countries - the other regular importers of local jute and jute goods- have opted for reduced imports. Besides political unrest in Bangladesh has also created shipment problems in exporting the finished jute goods, causing heavy financial losses to the jute sector. 

Millers and exporters have urged the government to explore new markets for jute exports immediately. Jute producers, processors and exporters also want the government to increase local consumption of jute by implementing the Jute Packaging Act. Bangladesh enacted the Jute Packaging Act in 2010, but the law is yet to be implemented.