Jute Bags from India, Bangladesh or Myanmar? A 2026 Sourcing Comparison
· 9 min read
The short version
India and Bangladesh grow almost all of the world's jute: FAO data for 2023 puts Bangladesh at about 50% of world output and India at about 48%. Myanmar's crop is too small to build a bag programme on.
Bangladesh exports more jute by value — US$820 million in 2024–25 — but most of that is yarn and raw fibre. Its bag and sack exports were US$126 million; India's jute exports were US$231 million in 2025–26.
Duty is the real difference. Into the EU, Bangladesh-origin goods stay duty free until its post-graduation transition ends in November 2029, while Indian goods pay the ordinary rate until the EU–India agreement takes effect, expected in late 2026 or 2027. Into the UK, both are duty free today.
Decide on the programme rather than the country. A multi-year contract will outlive today's duty gap, and where the fabric is woven decides which preference you can claim at all.
Search for a jute bag supplier and three countries come up: India, Bangladesh and, less often, Myanmar. They share a region and, in the first two cases, a river delta, so it is tempting to treat them as interchangeable. For a bag buyer they are not. They differ in how much fibre they grow, what they export, what duty your bags pay on arrival and how much checking a supplier needs before you sign.
We make bags in Kolkata, so we have an interest in the answer. That is why every figure below names its source and its date, and why the section on when Bangladesh is the better choice is as specific as the one on India.
Where the world's jute is grown
Jute needs heat, humidity and a great deal of water, and the delta where the Ganges and Brahmaputra meet is the largest place on earth that reliably provides all three. That delta is split between West Bengal in India and Bangladesh, which is why those two countries dominate the crop.
Country
Share of world output
Bangladesh
50.4%
India
48.4%
China
0.5%
Uzbekistan
0.4%
Nepal
0.3%
Share of world jute production in 2023, from FAO data.
The two leaders are close enough that which one is larger changes with the season and with the data source. What does not change is that between them they grow almost 99% of the world's jute, so on fibre supply alone the choice is a narrow one.
What each country does with its fibre is different. India's mills use most of theirs at home: the Jute Packaging Materials Act of 1987 lets the government reserve food-grain packing for jute sacks, which keeps a very large domestic industry busy. Bangladesh sends a far larger share abroad as raw fibre and yarn.
Export scale: what the numbers actually say
Category
Export value
Change on 2023–24
Jute yarn and twine
US$461.83 million
−6.2%
Raw jute
US$148.48 million
−7.9%
Jute bags and sacks
US$125.96 million
+18.5%
All jute and jute goods
US$820.16 million
−4.1%
Bangladesh's jute exports in the 2024–25 financial year, from Export Promotion Bureau data. The balance of the total is other jute goods.
India's jute exports were US$231.49 million in the 2025–26 financial year, according to Department of Commerce, National Jute Board and Indian Jute Mills Association figures compiled by IBEF. The United States was the largest market at 22.7% of the total, followed by Nepal, the United Kingdom and Germany.
Read together, the figures say two things. Bangladesh is the larger jute exporter overall, but most of that is yarn and fibre sold to mills abroad rather than finished bags. And its finished-bag trade is growing quickly — up by almost a fifth in a year — so it is a serious competitor for bag programmes, not just a source of raw material.
Duty: the difference that actually moves landed cost
On a reusable bag programme, duty can be larger than the importer's whole margin, so the tariff treatment of each origin in your market often settles the question before the price does. As of September 2026 it looks like this:
Destination
Bangladesh-origin bags
India-origin bags
European Union
Duty free under Everything But Arms, continuing through a three-year transition after LDC graduation, to November 2029
Ordinary EU rate until the EU–India agreement takes effect; textile and clothing duties then fall to zero
United Kingdom
Duty free under the Developing Countries Trading Scheme, with a transition after graduation
Zero on 1,143 textile tariff lines under the India–UK CETA, in force since July 2026
United States
No preference
No preference
Tariff treatment by destination as of September 2026. Always confirm the rate for your exact tariff line before ordering.
The EU: a gap with an end date on both sides
Bangladesh is due to leave the UN's least developed country category on 24 November 2026. Everything But Arms — the EU scheme that gives least developed countries duty-free, quota-free access — does not end that day: the EU continues it for a three-year transition, to November 2029. After that, Bangladesh needs GSP+ status or a trade agreement to stay duty free.
India is moving the other way. The EU–India free trade agreement was concluded on 27 January 2026, and on 11 September 2026 the European Commission sent it to the Council for signature. It still needs the Council's decision, signature, the European Parliament's consent and ratification in India, and is widely expected to take effect in late 2026 or the first half of 2027. The Government of India said in January 2026 that EU duties of up to 12% on Indian textiles and clothing fall to zero from the day it applies.
The UK and the US
Into the UK, both origins are duty free today: Bangladesh under the Developing Countries Trading Scheme, India under the India–UK CETA since July 2026. The difference is permanence. CETA is a reciprocal agreement, while the trading scheme is a preference the UK grants and can change, and claiming CETA properly takes some paperwork.
Neither country has a trade preference in the United States, and US tariff rates on both have changed several times since 2025. Check the rate in force on the day you ship rather than relying on any article, including this one.
Whatever the destination, preference is never automatic. The goods have to meet the rules of origin for their tariff line, which for textiles usually look at where the fabric was woven as well as where the bag was stitched, and you need valid proof of origin. A bag stitched in one country from fabric woven in another may not qualify for either country's preference — worth asking about directly, because fibre, yarn and fabric are traded across the region. Classification and paperwork for an EU import covers the rest of the document set.
Myanmar: why it comes up, and why it rarely works
Myanmar appears in supplier searches because it borders both countries and does grow jute. The scale is the problem. In the Indian Jute Mills Association's world production table for 2018–19, Myanmar's crop was about 2,000 bales against roughly 16 million worldwide, and FAO's 2023 figures list China, Uzbekistan and Nepal as the next-largest producers after India and Bangladesh — each below 1%.
The larger issue is risk. Since the 2021 military coup, the EU, UK and US have imposed sanctions on Myanmar's military and on businesses linked to it, and in April 2026 the EU extended its restrictive measures to April 2027. Myanmar still has Everything But Arms access, but under the EU's enhanced engagement process, which examines a beneficiary's human-rights and labour record. Several large European retailers, including Primark and Inditex, announced in 2022 that they would stop sourcing there.
None of that makes a Myanmar order unlawful. It does mean every supplier needs its ownership screened against sanctions lists, and that your own customers may ask why you chose it. For most bag programmes the fibre and the capacity are simply not there to justify the extra work.
When Bangladesh is the better choice
Plain, price-led EU programmes delivered before late 2029. On unprinted sacking and simple hessian bags, duty-free entry can outweigh any difference in the bag itself.
Yarn and raw fibre. Bangladesh is the larger exporter of both, by a wide margin.
An existing supplier with a clean audit history. Moving origin costs sampling time and a new approval cycle. Do it for a reason, not by default.
When India is the better choice
UK programmes. Duty is zero from both origins, and CETA is a permanent agreement rather than a preference with a transition attached.
Mixed ranges. India also has one of the world's largest cotton industries, so jute, cotton, juco and canvas bags — and the t-shirts that often go with them — can come from one supplier in one container.
EU contracts that run past 2027. Once the EU–India agreement applies, the duty gap closes, and after November 2029 Bangladesh's transition ends.
Printed and laminated retail bags. Around Kolkata, spinning, weaving, laminating, printing and stitching sit within a short radius of each other, which keeps a complex finish under close control. See how printing on jute works.
Questions to ask whichever country you choose
Where is the fabric woven, and which country will the certificate of origin name? This decides which preference you can claim.
Which preference will you claim, and can you issue the proof of origin it requires? Ask to see a sample document before the first order.
What happens to the price if a preference changes mid-contract? Agree it in writing now, while nobody is under pressure.
Can you send a same-day video of the production floor? It is still the fastest way to tell a factory from a trading house — more on that here.
If your programme is plain sacking for the EU before 2029, get a Bangladeshi DDP quote alongside any Indian one — the duty gap is real. For UK programmes, mixed ranges and printed retail bags, send us your specification. We manufacture jute, cotton and juco bags in Kolkata and quote DDP, so the duty is already inside the number you compare.
Frequently asked questions
Which country produces the most jute?
India and Bangladesh, by a wide margin, and the ranking between the two changes with the season. FAO data for 2023 puts Bangladesh at about 50% of world output and India at about 48%, with no other country above 1%.
Are jute bags from Bangladesh cheaper than jute bags from India?
Into the EU, Bangladesh-origin bags currently have a duty advantage: they enter duty free under Everything But Arms, while Indian-origin bags pay the ordinary rate until the EU–India agreement applies. Into the UK both are duty free, so the comparison comes down to the bag itself. Compare DDP quotes, which include duty, rather than ex-works prices.
What happens to Bangladesh's duty-free EU access after LDC graduation?
Bangladesh is due to graduate from least developed country status on 24 November 2026. The EU keeps Everything But Arms access in place for a three-year transition, to November 2029. After that, Bangladesh needs GSP+ status or a trade agreement to stay duty free.
When will the EU–India trade agreement take effect?
It was concluded on 27 January 2026, and the European Commission sent it to the Council for signature on 11 September 2026. It still needs signature, European Parliament consent and ratification in India, and is widely expected to apply in late 2026 or the first half of 2027.
Can I source jute bags from Myanmar?
It is possible but rarely practical. Myanmar's jute crop is a tiny fraction of world output, and EU, UK and US sanctions on the military and linked businesses mean every supplier needs ownership screening. The EU extended its Myanmar restrictive measures to April 2027.
jute bags from India
jute bags from Bangladesh
jute exporters India Bangladesh
India vs Bangladesh jute sourcing
Myanmar jute
Talk to the people who make them
We weave, print and stitch jute, cotton and juco bags in Kolkata, India, and quote DDP so the price you see is the price that lands. Send a specification and we will come back with options.