BD set to become world’s largest cotton importer in FY '25

Bangladesh is set to become the world's largest cotton importer in the current fiscal year (FY 2024-25), overtaking China, according to the US Department of Agriculture (USDA).

The country's heavy reliance on export-oriented readymade garment industry that employs around 5.0 million people, mostly women, is driving the surge in cotton imports.

The industry, world's second-largest garment manufacturing hub globally, is projected to import 8.0 million bales of cotton this FY, reads the USDA data released recently.

In FY 2023-24, Bangladesh ranked second in global cotton imports, trailing only China.

West Africa was Bangladesh's top cotton supplier last FY, accounting for 35 per cent of total imports, followed by India and Brazil while the United States contributed 11 per cent, according to the USDA data.

The sector insiders say Bangladesh  depends almost entirely on imported cotton due to low domestic production.

Imported cotton is spun into yarn and then used to create woven or knitted fabrics - the building blocks of the country's RMG industry.

In contrast, China produces over 6.0 million tonnes of cotton annually and focuses more on high-end, functional wear, which relies heavily on synthetic and man-made fibre.

"We produce lower-end clothing that requires natural cotton, which is why our cotton imports are steadily rising," said Anwar Alam Chowdhury Pervez, Managing Director of Evince Group, a leading garment manufacturer in Bangladesh.

Speaking about US cotton specifically, Mr. Chowdhury said that it is competitively priced compared to other sources.

While India and Pakistan remain key suppliers due to their proximity, he stressed the need for increasing imports from the US to reduce the trade gap with Bangladesh.

"We could use our bonded warehouse facilities to store larger volumes of US cotton, which would reduce lead times," said Mr. Chowdhury, who also serves as the President of the Bangladesh Chamber of Industries (BCI).

"We're planning to talk with the Arizona Cotton Growers Association in the US to explore collaborative opportunities," he said.

The Trump administration has recently reiterated its concern over trade deficits, particularly with countries like Bangladesh where exports to the US far outweigh imports.

Economists believe increasing cotton imports from the US could help ease this trade imbalance.

"The US has long been advocating for more cotton exports to Bangladesh," said M. Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh.

"This could be a practical step to narrow the roughly $5 billion trade gap."

Meanwhile, the state-run Cotton Development Board (CDB) says domestic production can be ramped up through expanded hybrid and super-hybrid cotton cultivation.

The board aims to produce 500,000 bales by 2030 and 1.9 million bales by 2050 in the country.

CDB data suggests the country's textile manufacturing market is projected to reach $20.15 billion in 2025 and $26.72 billion by 2030.

They have been calling for cotton to be officially recognised as an agricultural crop.

Dr. Md. Fahre Alam Ibne Tabib, Executive Director of the CDB, said: "We also need to strengthen biotechnology research and promote contract farming for cotton."

Currently, Bangladesh produces only around 200,000 bales of cotton annually - less than 2.0 per cent of its total consumption.

The country has 1,849 spinning mills, with current demand reaching approximately 7.3 million bales, valued at over $3.0 billion.

jasimharoon@yahoo.com