Sayed Abdullah
January 27, 2025
Bangladesh textile spinning millers and international cotton association delegates urge the Bangladesh govt. to support in establishment of cotton warehousing facilities.
Md. Showkat Aziz Russell, President, Bangladesh Textile Mills Association (BTMA) shared his positive talks with several concerned government bodies regarding cotton warehouse facilities for up to three months, which can help address challenges related to longer lead times and price fluctuations.
In a recent meeting with the Chattogram port Chairman, Showkat Aziz Russell proposed that idle seaport facilities be utilized for warehousing purposes. This collaborative approach would contribute to supply chain optimization and cost reduction.
“By working closely with BTMA and BGMEA, we are striving to improve port infrastructure and streamline processes. This will help to mitigate price fluctuations, reduce lead times (currently exceeding 90 days), and ultimately enhance the competitiveness of Bangladeshi textile mills,” Russell added at the recently held ‘5th Global Cotton Summit Bangladesh 2025’ event, organized by Bangladesh Cotton Association, in collaboration with the BTMA.
Regarding the import of illegal and rampant yarn import from India, the BTMA President also expressed concern over the increasing reliance on imported yarn from India, which was 40% last year alone. He believes this contributes to job losses in the domestic market. He addressed the Chief Guest, Touhid Hossain, honorable foreign advisor, Ministry of Foreign Affairs, Govt. of Bangladesh, to take stringent measures to stop this.
In his address, the Chief Guest, Touhid Hossain, honorable foreign advisor, Ministry of Foreign Affairs, Govt. of Bangladesh said, "I fully agree with the BTMA President regarding lengthy cotton import lead times of 3-4 months. By establishing dedicated warehouse facilities, we can significantly reduce costs by 10-20% and enhance supply chain efficiency.
I am committed to expediting the implementation of these storage solutions. This will not only mitigate the challenges of price fluctuations and unpredictability but also benefit all stakeholders and enhance the overall viability of the industry. The availability of readily accessible cotton within Bangladesh will be crucial for the industry's sustainable growth."
The Gold Sponsor of the event was COTTON USA™. COTTON USA™ Country Representative, Ali Arsalan said, “Great event by the BCA to bring together international cotton merchants, buyers and agents together for necessary discussions to build strategies for Bangladesh 2.0.
The comments of the Advisor Touhid Ahmed were very positive and encouraging and CCI is very interested in the developments mentioned by BTMA President Showkat Aziz Russell, regarding the development and implementation of local warehousing for international cotton merchants.”
(Source: www.textiletoday.com.bd)