Bangladesh’s cotton consumption to rise to 78 lakh bales in marketing year 2025: USDA

Bangladesh's cotton consumption is expected to rise slightly to 78 lakh bales in the 2024-25 marketing year, starting in August, says a new USDA report. Of the projected consumption, 77 lakh bales will be imported. The USDA initially forecasted 80 lakh bales for MY25, but later revised the figure to 78 lakh. Bangladesh, the world's second-largest readymade garment (RMG) exporter, remains the top cotton importer.

West African nations, India, Brazil, and the US are the key suppliers of raw cotton to Bangladesh. The country recently allowed US cotton imports without fumigation, easing trade barriers.

Bangladesh's apparel exporters seek duty-free access to the US market for RMG products made from American cotton, a request yet to be fulfilled. In 2023, Bangladesh imported over $339 million worth of US cotton, making it the fifth-largest market for American cotton exports.

Despite global cotton prices falling 15 per cent in 2024, local yarn production is projected to grow, driven by improved access to letters of credit (LCs) for imports. However, the domestic cotton cultivation remains minimal, covering just 0.55 per cent of arable land and accounting for less than 2 per cent of the nation’s consumption.