Brind.
Part of Trade market pressures between the two countries have been observed since August 1st.

How does Bangladesh's raw jute export ban affect West Bengal?

The ban is causing a shift in production focus for local jute manufacturers in West Bengal toward the domestic market. The abrupt ban on raw jute exports by Bangladesh in September 2025 created a significant raw material price gap of about 15 to 20 per cent between the two countries. This international market pressure is forcing Kolkata-based Cheviot Company Ltd, which operates in West Bengal, to increase its focus on the domestic market to protect its margins. This shift is supported by strong domestic demand, largely driven by government procurement of jute bags for wheat and rice.

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How it reaches West Bengal

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The facts so far

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  • Raw jute prices are currently hovering around ₹13,000 a quintal, compared with a five-year average of around ₹6,000 a quintalthehindubusinessline.com
  • The raw material price gap between India and Bangladesh is about 15 to 20 per centthehindubusinessline.com
  • Cheviot Company Ltd estimates losing 30 to 40 per cent of its export market since the border closed about a year agothehindubusinessline.com
  • The company has two plants, located in Budge Budge and Falta Special Economic Zone, in West Bengal’s South 24-Parganas districtthehindubusinessline.com

Why it matters

The shift by Cheviot Company Ltd, a major manufacturer operating in West Bengal, indicates that local production is adapting to severe international trade disruptions caused by the ban. The company is actively developing new and value-added products, such as erosion control products and technical textiles, to maintain viability and protect margins.

The ban highlights the structural dependence of the Indian jute industry on cross-border trade with Bangladesh. The closure of the land border and the subsequent ban have led to significant export market losses for the industry, forcing manufacturers to rely more heavily on domestic demand, which is currently strong due to government procurement.

What we don't know yet

  • How will the sustained strong domestic demand for jute bags affect the overall financial health of the West Bengal jute industry?
  • Will the development of new value-added products by companies like Cheviot Company Ltd be sufficient to offset the losses from the international market?

What would change this answer

The government increases subsidies or provides incentives for jute production in West BengalThe domestic market stability could be further reinforced, potentially increasing the positive impact of the production shift.
The land border with Bangladesh reopensThe raw material price gap and the pressure on Indian exports would likely diminish, potentially reversing the production shift.

Reporting

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The full eventBangladesh Export Ban Drives Up Jute Prices, Shifts Production in Kolkata Everything aboutWest Bengal

Brind's analysis is written by AI from the reporting linked above and can be wrong. It explains possible effects; it is not investment advice.