Bangladeshi textile millers are going to put forward at least seven points at a meeting with the International Cotton Association on Thursday, according to sources, seeking changes in the cotton rulebook for ensuring equal treatment for both the cotton buyer and seller.
The points include mandating written confirmation for a cotton contract, mediation before arbitration, mandating oral hearing for arbitration, payment of appeal deposit in local currencies, and setting up a laboratory in Bangladesh.
Local textile millers said rules of the International Cotton Association – the apex body for cotton buyers and sellers – are currently more favorable for cotton sellers.
“If the points are addressed, the rulebook will be balanced,” Mohammad Ali, president of the Bangladesh Textile Mills Association (BTMA), told The Business Standard on Wednesday.
After China, Bangladesh is the second largest cotton importer of the world. The country’s textile sector accounts for around 65% of the annual export earnings. The country imports cotton from Africa, India, Eastern Europe and Asia, USA, Australia and Pakistan.
International Cotton Association President Alex Shih-Kang Hsu and Managing Director Bill Kingdon have a scheduled meeting with the BTMA board in Dhaka Thursday.
According to textile sources, for mandating written confirmation for any cotton contract, the signature of the buyer must be verified by the buyer himself. In this regard, the BTMA is positive in providing the cotton association with its member details and signatures.
In case of any dispute between the buyer and the seller, the BTMA advocates for an initial investigation before arbitration and recognizes the BTMA investigation as key evidence in the arbitration.
In an arbitration, textile millers say oral hearing currently is an option. But it should be “mandatory for the sake of justice”.
The millers also demand a testing laboratory in Bangladesh so that quality claims can be settled jointly by the International Cotton Association and the Bangladesh Standards and Testing Institution.
Engr Razeeb Haider, a director at the BTMA, told The Business Standard that currently, they have to send cotton samples abroad at the association nominated labs if any dispute arises over the quality of imported cotton.
“But as a key importer, we want a laboratory in Bangladesh,” he added.
BTMA President Mohammad Ali Khokon said despite being the major cotton buyer of the world, Bangladeshi millers often do not get enough space in the International Cotton Association.
According to sources, BTMA will seek at least five Bangladeshi members in the cotton association board.
