This paper has examined the case for Bangladesh being a party to an international buffer stocking arrangement for raw jute. The need for international buffer stock is established on the basis of two results. First, it has been found that magnitude of price and export value fluctuations are quite severe. And second, further examination has shown that supply fluctuations mainly have caused price and value fluctuation. It has also been pointed out that although buffer stock has important implications for long term viability of raw jute as a source of foreign exchange earning, it is basically a short term measure. Implementation of additional measures, involving both domestic policies and cooperation from importing countries in respect of removal of trade barriers, has to be ensured for keeping raw jute alive as a source of foreign exchange earnings for quite sometimes to come.