Bangladesh has halted all jute exports to Pakistan. This has put Pakistan’s mills in trouble. Any delay in supply would mean an end to production of jute products especially jute sacks and leave thousands of its labor force jobless. Pakistan is one of the biggest importers of Bangladesh jute. If jute sacks are not available, the storage of crops, especially of wheat, rice, grains, and potatoes, is likely to go waste throughout Pakistan.

Raw jute was waiting to be shipped at Bangladesh’s ports, but the government issued a notification by hich exports of raw jute were suspended until further notice. The jute sector in Pakistan is already facing stiff competition from woven polypropylene and other packaging materials. Small farmers are likely to be the worst hit by the ban since they would not be able to sell their crops without the required jute bags.

Bangladesh is the largest exporter of raw jute in the world. It imposed the ban on jute exports to increase supply of the fiber for local jute bag and sack-makers. Jute prices have shot up in Bangladesh due to heavy rains and floods which caused yield loss. Mills in Pakistan, Nepal and some in India depend on Bangladeshi jute.