A major part of Bangladesh's economy depends directly or indirectly on jute farming, trading and employment in jute manufacturing. Jute has been a vital sector for the country and remains so even today with about 45 million people depending on various aspects of the industry. Chairman of the Bangladesh Jute Mills Corporation (BJMC) had recently stated that the country's jute industry is going through a rough patch. As per reports, government-owned BJMC has lost Tk 450 crores during FY2014-15. This is larger than the losses incurred by it in the two previous years, which totalled to Tk 326 crores.

Besides, BJMC's 4,000 employees and 67,000 factory workers are yet to be paid for the last two months. Gratuities for its 5,700 retired employees and workers too, have not yet been settled. This alone totals Tk Tk 350 cores. In 2011, the government reopened five closed jute mills and allocated Tk 105 crores for this, besides recruiting 35,000 permanent workers through the BJMC. The BJMC report states that it can't purchase raw jute on time due to fund constraints and government's delay in releasing funds. Thus, it incurs losses up to Tk 700-800 million every year.

The BJMC, for the FY2015-16, planned to purchase raw jute worth Tk 1,000 crores, were provided with only Taka 1.0 billion just before Eid-ul-Fitr and was told to not expect any more funds. So, they can't clear arrears worth Tk 1.0 billion due to small raw jute traders and will have to purchase raw jute on loans once again. All this adds up to the cost and reflects in the company's balance sheet.