According to the US Department of Agriculture (USDA), Bangladesh is expected to witness a reduction in its cotton import during the 2023-24 marketing year, commencing August even if this decline is primarily attributed to decreased consumption.

The USDA recently reported that cotton imports by mills are anticipated to drop to 77 lakh bales for the current marketing year, marking a nearly 4 percent reduction from the previous month’s forecast of 80 lakh bales, as outlined in their latest report on global cotton markets and trade.

The diminishing consumption of cotton in Bangladesh, the second-largest garment exporter globally following China, is expected to contribute to a decrease in global trade.

The USDA indicated that global cotton trade might decrease by approximately 600,000 bales compared to the previous month, amounting to 4.33 crore tonnes, with reduced consumption being particularly prominent in major importing countries, including Bangladesh and Vietnam.

Mohammad Ali Khokon, President of the Bangladesh Textile Mills Association (BTMA), attributed this decline to energy-related challenges, citing that factories in the Gazipur area are operating at only 60 percent of their capacity even as he also pointed out that a dollar shortage and difficulties in opening letters of credit due to the high exchange rate have hindered many from importing the required amount of cotton.