The countryβs textile mills would be able to buy US cotton locally from November, as the first privately operated US cotton warehouse in Bangladesh is set to open at Anwara in Chattogram, reducing sourcing lead times and potentially lowering procurement costs. The AmeriBangla US Cotton Warehouse is scheduled to begin operations on November 18 at a leased facility near the government-designated Free Trade Zone, with an initial inventory of 80-100 tonnes.
AmeriBangla Corporation, led by Bangladeshi-American entrepreneur Aswar Rahman, is establishing the warehouse as part of a broader initiative to strengthen the supply chain between US cotton producers and Bangladeshβs textile and apparel industry. βWe are planning to launch operations on 18 November. Around 100 tonnes of cotton have already left a US port for Bangladesh,β Aswar, chief executive officer of AmeriBangla, said in an interview with New Age. He also said that the company planned to start with three shipments of US cotton and gradually increase inventory according to demand. The initiative is being implemented with a local partner. The warehouse would allow spinning mills to purchase cotton from locally held stocks instead of arranging individual imports and waiting for shipments to arrive. US cotton imports have already been rising. Bangladesh imported US cotton worth $346 million in financial year 2024-25, up from $278 million in FY24, accounting for about 10 percent of the countryβs total cotton imports.
Aswar Rahman said that the industry leaders believed imports of US cotton could eventually reach $2 billion a year if the country can take advantage of emerging trade opportunities with the United States. He also said that direct sourcing from US farmers and ginners would allow it to offer cotton at competitive prices. US cotton currently costs about 85 cents per pound when delivered to Chattogram through conventional import channels. He expects warehouse-based supplies to be about 10 cents per pound cheaper than prevailing rates.
An official at Envoy Textiles said the company had already tested small trial imports through AmeriBangla, and direct sourcing enabled competitive pricing. If they can supply larger volumes reliably, they could become a primary supplier, he added. The initiative has gained further importance following discussions on bilateral trade measures under which garments made with US cotton could receive tariff concessions in the US market, said Aswar. AmeriBangla plans to introduce an All American Cotton certification program at an industry event in Manhattan on October 8.
Aswar said that the program would use industrial reporting, third-party audits and isotope testing by US state universities to verify the origin and content of US cotton. He said certified garments could potentially qualify for a 10-19 percent reduction in import duties and an 18 percent transferable tax credit on the value of raw US cotton used, subject to applicable US trade measures.
The company also planned to launch the AmeriBangla Cotton Lab in New York City in October. The program would select up to 10 emerging fashion designers and support them in producing their apparel lines in Bangladesh using certified US cotton, yarn and fabric. The warehouse is part of AmeriBanglaβs longer-term plan to increase Bangladesh-US bilateral trade from about $10 billion currently to $100 billion by 2045, he added.
Aswar said Bangladesh could achieve the target through integrated efforts involving trade, manufacturing, logistics and supply-chain development. The company is also seeking support from US agencies, including the US Department of Agriculture, the State Department and the US EXIM Bank, for the development of the permanent warehouse facility. The initiative aims to create a more integrated supply chain that links US cotton producers directly to Bangladeshβs textile and apparel sector, while giving local mills faster access to raw materials.
