Bangladesh eyes stable cotton supply as trade tensions rise

Bangladesh is set to become the world’s largest cotton importer in FY2024-25, overtaking China, according to the USDA. The country is expected to import 7.8 million bales this fiscal year, up from 7.5 million bales in FY2023-24. Industry insiders credit Bangladesh’s strategic location and shifting global trade dynamics but warn that geopolitical instability could disrupt supply chains.

To reduce trade imbalance and ensure supply stability, Bangladesh is considering increasing cotton imports from the US. Foreign Affairs Adviser Md Touhid Hossain said this move would support US farmers and shield Bangladesh from future tariff risks under a potential Trump administration.

While China is projected to import 8 million bales, Bangladesh follows closely, ahead of Vietnam and Pakistan. However, local textile mills face challenges, with many running below capacity due to gas shortages. The government has reduced incentives and halted Indian yarn imports via land ports to boost local production.

Currently, Bangladesh imports 50 per cent of its cotton from Africa, but ongoing conflicts raise supply concerns. Industry leaders urge diversification and domestic cultivation, which stands at 228,000 bales this year far below the 8.5 million bale annual demand for the country’s $22 billion textile sector.