Cotton consumption in Bangladesh may rise 8.75 percent to 870,000 tonnes in fiscal 2014-15 with higher demand for garments, according to a report by Economist Intelligence Unit (EIU).
At the end of the current fiscal year, cotton consumption will reach 800,000 tonnes, the same quantity that Bangladesh consumed in fiscal 2012-13, the report added.
Cotton consumption started picking up after fiscal 2011-12 when consumption had declined to 700,000 tonnes for volatility in the global cotton market. In fiscal 2010-11, Bangladesh consumed 840,000 tonnes of cotton.
For the sudden rise in cotton demand by China in 2011 to build stocks, prices reached a height of $2.5 a kilogram from 60-90 cents previously.
Since Bangladesh is not a cotton producing country, it needs to import its entire cotton needs.
“The EIU forecasts are not abnormal and matches our cotton consumption trends,” said Jahangir Alamin, president of Bangladesh Textile Mills Association.
With a rebound of the economy in the west, demand for Bangladeshi garment items is increasing, he added. As a result, demand for yarn and fabrics is also increasing in Bangladesh, he said.
Currently, Bangladesh can supply 80 percent of raw materials to the knitwear sub-sector and 40 percent fabrics to the woven sub-sector with vibrant backward linkage industries.