‘Direct cotton sourcing from US farmers could boost apparel exports’

Direct cotton sourcing from US farmers could boost apparel exports to the United States amid rising trade tensions and tariff uncertainties, said Aswar Rahman, CEO of AmeriBangla Corporation — a platform connecting US farmers and Bangladeshi mills through fair pricing and a transparent supply chain — on Thursday.

Speaking at a trade meeting at the Westin Hotel in Dhaka, Rahman noted that American cotton farmers wield political influence through their Congressional representatives and senators from cotton-growing states.

Currently, the cotton sourcing process involves nine intermediaries from farmers to millers. The new initiative aims to enable direct cotton imports from American farmers, bypassing the merchant syndicates that dominate the global cotton trade, by connecting farmers, ginners, and millers through AmeriBangla.

“It could be a strategic alliance between American cotton farmers and Bangladesh’s ready-made garment (RMG) sector — one that could potentially reshape the sourcing model and trade dynamics between the two nations,” said Aswar Rahman, a Bangladesh-born American entrepreneur.

“Bangladesh’s future in the US market may hinge on this direct sourcing model,” he added. “If our spinners and millers adopt American cotton at scale, we can align ourselves with powerful agricultural constituencies in the US who have real influence in Congress.”

What makes this partnership unique is the role of American cotton farmers — a politically powerful constituency often overlooked in international trade discussions. “If we can bring American farmers to the negotiating table, it will be a game-changer,” Rahman said. “No one in Washington wants to antagonise their farmers.”

Under the proposed framework, American farmers may lobby in Congress — and even directly to President Trump — for tariff relief on Bangladeshi apparel, in exchange for guaranteed demand from Bangladesh’s RMG sector.

He also mentioned that this strategic partnership includes five core elements: a streamlined ordering system for Bangladeshi mills to buy directly from US farmers; permission to establish a bonded warehouse in Bangladesh for duty-free cotton storage; commitment to source the majority of cotton from American producers; tariff advocacy by US cotton farmers on behalf of Bangladeshi exporters; and joint demand-generation campaigns in the US market to promote garments made from American cotton.

Starting from this August’s harvest, selected Bangladeshi spinners and composite factories are expected to place their first direct orders. Rahman confirmed that six Bangladeshi companies are already in the process of finalising agreements.

Mohammad Rashed, vice president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said: “If they offer country-specific facilities, it may help promote American cotton, as its price is higher compared to others. However, the industry will need at least 18 months to fully prepare for direct buying at scale.”

Warehouse, display center, and consumer demand

AmeriBangla has also sought government approval to set up a bonded warehouse in Bangladesh with the capacity to store up to one million bales of American cotton — a facility that would require land equivalent to 13 cricket fields. This would ensure year-round supply stability and faster access for local spinners.

To build brand value around garments made from American cotton, AmeriBangla plans to open a dedicated showroom in Manhattan, showcasing products labeled “Made with American Cotton, Sewn in Bangladesh.” Rahman cited a recent study showing that US consumers are willing to pay up to 17 per cent more for garments made with American cotton.

As early as December, major US retailers are expected to receive regulatory incentives to source only American cotton-made apparel.

“We believe there’s over an 80 per cent chance that the use of US-grown cotton will be encouraged — if not mandated — by year-end,” Rahman warned. “Bangladeshi exporters must adapt now to retain their competitiveness in the US market.”

Currently, Bangladesh exports over $10.6 billion worth of goods to the US annually, growing at an 8 per cent compound annual growth rate (CAGR). Meanwhile, US cotton sales to Bangladesh stand at over $2 billion annually. The new sourcing model is expected to significantly increase this figure while helping Bangladeshi exporters maintain preferential access to their top market.

AmeriBangla also urged the Bangladesh government to revise import and warehouse regulations to allow cotton farmers and networking platforms to establish bonded warehouses — a key enabler for the smooth execution of the direct buying model.

“In this chaos, there are opportunities,” Rahman concluded. “Opportunities multiply as they are seized upon — and this partnership could be the one that secures our industry’s future in the US.”

BKMEA Director Minhajul Haque, Ha-Meem Group Director Sajid Azad, CEO Muhammad Amin, Jamuna Group’s Hoorain Fabrics Ltd CMO Abdul Hakim, True Group Marketing Director Tareq Mamun Chawdhury, Divine Group Head of Business Development Khurshid Alam, Marubeni Group DGM Md Arifuzzaman, and AmeriBangla Senior Advisor Retired Brigadier General Ali Ahmed Khan were also present at the event.

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