- Trade relations in Bangladesh are being affected by government policy.
- Trade market pressures between the two countries have been observed since August 1st.
Bangladesh Export Ban Drives Up Jute Prices, Shifts Production in Kolkata
What happened
Bangladesh abruptly announced a ban on the export of raw jute in September 2025. This action caused domestic raw jute prices to escalate abnormally. Jute products maker Cheviot Company Ltd is now shifting its focus to the domestic market and developing new products to protect margins amid high raw jute prices, which currently hover around ₹13,000 a quintal compared to a five-year average of ₹6,000 a quintal.
Why it matters
The export ban and subsequent price escalation are creating significant market pressures in the jute industry. The high cost of raw jute, coupled with low inventory levels at mills, is forcing companies to re-evaluate their supply chains and market strategies.
Trade market pressures between Bangladesh and India have been observed since August 1st, and trade relations in Bangladesh are being affected by government policy.
Who's involved
- BangladeshCountry that abruptly announced the raw jute export ban
- KolkataLocation of the jute products maker facing market pressures
- West BengalIndian state where the affected company operates
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- West BengalSpeculative
The shift in production might stabilize local demand in West Bengal.
- KolkataSpeculative
The company's market pressures might affect its operational costs or revenue.
How this reaches others
Each traced step by step, with the reporting behind itKeep exploring
The entities involved
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Bangladesh
country in South Asia
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Kolkata
capital city of West Bengal, India