The United States is aiming to double its cotton exports in Bangladesh in the next five years, representatives of a US body have said. Bangladesh’s apparel industry is expected to grow at an average of 12 per cent in the coming years, while keeping up with that pace, the demand for cotton will annually increase at a rate of 10 per cent, said the representatives of ‘Cotton USA, the non-profit body which promotes U.S. cotton fiber and manufactured cotton products around the globe. Currently, the US exports 160,000 bales of cotton each year. However, it wants this exports to double in the next five years as the local demand for better quality cotton increases, they said during an interview. The three-member ‘Cotton USA’ delegation in Bangladesh is led by the President of Cotton Council International Keith Lucas and also includes its Executive Director Bruce Atherley. “The target is to increase our cotton export at around the same rate as the apparel industry grows; if not higher,” said Keith Lucas, President of Cotton Council International. The US delegates’ remark comes at a time when Bangladesh has just become the largest cotton importer in world, partly thanks to China’s cotton stockpiling programme. Last year, Bangladesh imported 6.10 million bales cotton, of which 2.99 million bales or 49 per cent came from India. With nine million bales of overseas shipment in the year 2015-16, the United States stands as the largest cotton exporter in the world. However, its share in the Bangladeshi market is only 3.0 per cent, which is lower than major players like India. Rapid shipment, price competitiveness and relaxed settlement of dispute are often attributed as the key factors behind the Indian dominance in the local cotton market. However, the US delegates pointed out that in the coming years, a big chunk of Indian cotton might be used to feed its own growing domestic demand, which will automatically decrease the amount of cotton India can export overseas. President of Bangladesh Textile Mills Association Tapan Chowdhury, who was also present during the interview, added that the rising price of Indian cotton in recent times means that the US and other competitors will have an opportunity to grab a larger share in the local market. “Moreover, contrary to China, where a large amount of apparels are now made of polyester– 86 per cent of Bangladesh’s apparel are produced from cotton and that figure is likely to remain more than 80 per cent in the coming years,” said Bruce Atherley, Executive Director of Cotton Council International. “So, unlike China, the demand for cotton is likely to remain stable in Bangladesh and the US would like to tap this market”, he added. The US representatives also highlighted that compared to many of its competitors, American cotton is almost contamination-free, well classified, reliable and consistent in maintaining a high level of quality. “Although, US cotton is apparently pricier than some of its competitors in India and other countries, the total production cost for the apparel manufacturer using US cotton is ultimately the same, if not lower, when you consider those efficiency and quality issues”, Keith Lucas pointed out. The delegation, during their visit in Bangladesh, met the industry leaders of Bangladesh at a seminar in the capital, where they made presentation on world cotton supply, US cotton growth, responsible cotton growth, contamination, bale and packaging. The Cotton USA representatives were highly optimistic about the future growth of the apparel industry in Bangladesh, which they attributed to Bangladesh’s abundant manpower and a debt to GDP ratio, which is relatively lower than many of its neighbours. However, the US delegation pointed out that imported US cotton has to go through a fumigation process while entering Bangladesh. Terming the probation ‘outdated’, they called for lifting this age-old requirement. Removing this probation would be beneficial both for the importers and exporters, they said. During their visit, the US delegation also introduced and celebrated Cotton Day by holding a fashion show in the city with 100 per cent US cotton and cotton made garments. The event also highlighted Bangladesh’s rich cotton heritage.
