Increasing foreign cotton prices have affected Bangladesh’s local yarn during the pandemic of Coronavirus that is ongoing, with a rippling impact affecting clothes, especially knitwear shipments. The well-established 30 carded yarn is now available at 3,60 to 3,75 dollars per lb. According to the knitwears and suppliers it amounted to 2.60 to 2,80 dollars just two months earlier.
Local spinners, merchants, millers and consumers import cotton from the future markets, which can only supply 2,50 percent of the annual 75 lakh bales with bookings in advance as the domestic farmers. Transportation charges contribute to the expense of the local importers, which also affects yarn prices. A major cause for inflation is the growth in imports from China, which is the world’s largest market. Furthermore, considering the fact that China and Pakistan are major producers, the import targets have risen as a result of high prices in China and lower demand in Pakistan.
A report by the U.S. Ministry of Agriculture (USDA) also states that in the cotton marketing year (August–July) from 2020 to 21 Bangladesh will slash imports of 5 lakh bales. Mostly because garment firms are not yet completely recovering. Covid 19 has had a profound effect on almost every aspect of the global economy. As the effect of Covid-19 becomes clearer, the global utilization outlook for 2020-21 has been shrunk. However, in recent months the usage has risen as components of the global economy have stabilized and is just 3% below the February stage now.
With the worldwide downward projection and production relatively unimpeded, the projected end of the inventory by 2020-21 is 97.5 million bales higher than in February, 19 percent (15.4 million bales).