Bangladesh imports more than eight million bales of cotton a year and the consumption of cotton by the mills has increasing more than by 10 per cent year-on-year. Bangladesh is the only country in the world, which is mainly dependent on cotton fiber. Other major textile- and garment-producing countries have diversified their production to manmade fiber like viscose. Consumption of cotton will continue to grow in Bangladesh in the near future because of the high export of garments. Africa has become a huge source of cotton for Bangladesh. Last year, Bangladesh met 37.06 per cent of its cotton requirement from Africa. CIS (Commonwealth of Independent States) countries supplied 11.35 per cent of the cotton, 11.14 per cent from the US, 4.65 per cent from Australia and 9.65 per cent from the rest of the world.
Cotton prices are declining worldwide. This is good news for Bangladesh. Now Bangladesh cotton importers can either book a lot of cotton in the futures markets or import cotton. If spinners can purchase cotton at lower prices, they can supply the yarn and fabrics at lower prices to garment makers.