Cotton importers look for alternative markets

Bangladesh scopes out alternative cotton markets as India, one of its major sources, has imposed a ban on export of the item, which is hurting the domestic spinning sub-sector, businesspeople said.
As part of the search programme, a delegation comprising government high-ups, business leaders and cotton importers will go to Uzbekistan early next month, said Monoj Kumar Roy, additional secretary (export) to the commerce ministry.
Commerce Minister GM Quader will lead the team, Roy said, adding that the date is not finalised yet.
“But we hope the delegation will leave for Uzbekistan in the first week next month,” he said.
Roy also said the delegation will discuss with the Uzbek officials whether Bangladesh can directly purchase cotton from their government. At present, Bangladeshi importers purchase cotton from Uzbekistan through European buyers.
Bangladesh purchases 40 percent cotton of its total demand from the Commonwealth Independent Countries (CIS), especially from Uzbekistan, said Jahangir Alamin, president of Bangladesh Textile Mills Association.
Bangladesh should see whether it is possible to purchase cotton directly from Uzbekistan to ensure a guaranteed supply of the item, he said.
Being able to purchase directly from the Uzbek government will reduce cost and time, he added.
India, the second largest cotton producing country, supplies 35 percent of Bangladesh's total demand.
Bangladesh imports around 40 lakh bales of cotton annually, of which 15 lakh bales come from India, he said.
Bangladesh's major importers are the USA, the CIS countries, African countries, Australia and India, Alamin said.
But, India imposed a ban on cotton export on March 5 mainly to increase the stock for its domestic market, although the restriction was later relaxed partially in the face of protests from growers and traders.

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