Bangladesh cotton imports drop due to gas shortages and slow demand

Bangladesh's textile industry, a cornerstone of the nation's economy, witnessed a significant decline in cotton, yarn, and fabric imports in 2023, highlighting the sector's struggle amidst inadequate gas supply and global market challenges. Data compiled by the Bangladesh Textile Mills Association (BTMA) from Bangladesh Bank reveal a stark drop in cotton imports by 24.85 per cent, falling from 1.80 million tons in 2022 to 1.35 million tons in 2023.

Mohammad Ali Khokon, President of BTMA, attributes this decline to a crippling gas shortage that forced spinning mills to operate at half capacity. This, coupled with the ongoing dollar crisis, further hampered cotton imports for some spinners. The impact extended beyond cotton, with yarn imports dipping by 19.11 per cent and woven and knit fabrics experiencing declines of 14.29 per cent and 10.34 per cent, respectively.

Despite these challenges, the Bangladeshi apparel sector, known as RMG (Ready-Made Garments), managed to register 3.67 per cent export growth in 2023. Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), points to improved local value addition, higher unit prices, and strategic sourcing as key factors behind this resilience. Increased procurement from local sources, utilizing raw materials imported in 2022, and a shift towards imports of artificial fibers also contributed to the positive export performance.