Cotton consumption to soar on rising garment exports
The country's cotton consumption will continue to rise given the optimistic forecast for apparel exports, Tapan Chowdhury, president of Bangladesh Textile Mills Association, said.
The garment exporters are looking to hit the $50 billion-mark by the end of 2021, meaning more raw materials will be needed, Chowdhury told The Daily Star yesterday on the sidelines of the Global Cotton Summit.
At present, Bangladesh is the second largest cotton importer after China, sourcing in the vital raw material from the US, India, Uzbekistan and a host of African countries.
In fiscal 2004-05, the country imported three million bales of cotton [480 pounds make a bale], but within a span of ten years the country's consumption doubled, according to BTMA.
Cotton import registered 8 percent growth to 5.6 million bales in fiscal 2013-14 and 6 percent the previous year.
Currently, the local spinners and weavers have the capacity to consume 10 million bales of cotton, but they are unable to go into full production due to inadequate supply of gas and power to industrial units.
Yet, the 400 local spinners can supply 90 percent of the demand for raw materials for the knitwear sub-sector of the apparel industry and 40 percent for the woven sub-sector.
“If we get adequate supply of gas and power we will go for a massive expansion as the demand is here,” said Abdullah Al Mahmud, managing director of Mahin Group.
He has plans to set up a big spinning mill but it largely depends on the availability of gas connection.
The price of cotton has reached its five-year low of 60-65 cents.
“If the current prices of the cotton continue for a long time, Bangladesh will be immensely benefited from cotton trade,” Mahmud said, adding that it will spur a major expansion of the spinning sub-sector.
The first ever global cotton summit in Bangladesh came to an end yesterday. BTMA and Bangladesh Cotton Association jointly organised the two-day event, where over 250 delegates from Bangladesh, India, Poland, US, Russia, Pakistan, China, UK, Turkey, Egypt, Switzerland, Singapore, Hong Kong and France participated.
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