April 19, 2022
Bangladesh is projected to import more than one million bales of cotton in the 2022-23 marketing year (MY) from the US, said a recent report published by the US Department of Agriculture's Foreign Agricultural Service.
According to the report, the cotton import will be up by 43% year-on-year amid the rising domestic demands. For MY 2022-2023, the report forecasts the total domestic raw cotton consumption at 9.31 million bales, up 5.6% over the MY 2021-2022, from the current consumption of 8.5 million bales.
They assume it for the continuing high demand for yarn and fabric by the domestic garment industry. However, Bangladesh imports 11% (nearly worth $1 billion) of cotton of its total demand from the US and this is likely to go up to 14% by this year, said the textile millers of the country. Bangladesh has been receiving more work orders since the beginning of 2021 as many brands are shifting their orders from competitor countries such as Vietnam and Indonesia, said the report.
Contacts also stated that Bangladesh is expecting more orders in the coming months due to the recent Covid-19 lockdowns in China. Post estimates that in MY 2021-2022, the domestic raw cotton consumption at nine million bales, which is 2.27% higher than USDA's official estimate.
Post also forecasts that in MY 2022-2023, yarn and fabric consumption at 0.96 million MT and 6.4 billion meters, respectively. For MY 2021-2022, Post estimates yarn and fabric consumption will be at 0.95 million tons and 6.3 billion meters, respectively.
The report also said that in the calendar year 2021, Bangladesh’s ready-made garment exports reached a record high of $35.81 billion, and the country became the second-largest exporter after China. Due to the high domestic demand for yarn and fabric, Bangladesh continues to import these products in substantial amounts, the report added.
According to Bangladesh’s National Board of Revenue (NBR) data, Bangladesh has imported approximately five million bales of cotton in the first seven months of MY 2021-2022. Domestically produced cotton accounts for less than 2% of total cotton consumption and the total cotton cultivation in Bangladesh covers only 0.55% of the country’s 8.1 million hectares of arable land, said the report.
The textiles industry in Bangladesh is composed of yarn, fabric, and dyeing-printing-finishing mills.
According to the Bangladesh Textile Mills Association (BTMA), in the calendar year 2021, the number of spinning mills reached 510 with an annual spindle capacity of 15 million bales. However, Bangladesh is currently only consuming approximately 8.5 million bales of raw cotton annually.
Bangladesh’s yarn production recovered in 2021 following an extended period of market disruption due to the Covid-19 induced lockdowns and restrictions in CY 2020, said the report. Post forecasts in MY 2022-2023, the yarn production at 760 thousand tons, up 1.3% compared to MY 2021-2022.
According to the report, Indian cotton took a 29% share in 2021, followed by Brazil, Benin, and the US.
However, Mohammad Ali Khokon, president of the BTMA, said at a conference last month that although Bangladesh was willing to import more cotton from the US, it was also willing to expand its list of destinations from where the country sources the natural fibre amid intense global competition.
According to the report, Indian cotton took 29% of the global share in 2021, followed by Brazil, Benin, and the US. In the calendar year 2021, Bangladesh’s RMG exports hit a record high of $35.81 billion. Knitwear products exports were $19.6 billion and woven products were $16.21 billion, up 37.72% and 22.45%, respectively, compared to 2020. In 2021, Bangladesh became the second-largest global RMG exporter after China. (Source: www.dhakatribune.com)