Bangladesh to recognize cotton as agricultural product, boosting domestic production

Bangladesh government is set to recognize domestically produced cotton as an agricultural product, aiming to meet the growing demand for cotton in the textile industry. This long-awaited recognition is expected to unlock essential financial support for cotton farmers and encourage wider cultivation across underutilized lands. Cotton Development Board (CDB) executive director Md Fakhre Alam ibn Tabib highlighted the current dependence on imports to meet domestic demand, which puts pressure on foreign exchange reserves and exposes the textile industry to geopolitical risks.

To address this, the government plans to increase cotton cultivation to 200,000 hectares by 2050, up from just over 45,000 hectares in FY 2023-24. This expansion could cover 20 per cent of the country's total cotton demand, which stands at approximately 8.5 million bales annually.

The new policy will enable farmers to access subsidized loans at 4 per cent interest, similar to other import-substituting crops. It also aims to bring underutilized lands, such as riverine islands and drought-prone areas, into cotton cultivation. Experts believe this move will boost the rural economy, agriculture, and the textile sector, a key pillar of Bangladesh's economy.