Bangladesh: Expand farming, invest in R&D to meet 30% national cotton demand

Market News

Bangladesh: Expand farming, invest in R&D to meet 30% national cotton demand

Bangladesh has the potential to produce 30% of its cotton demand by expanding cultivation and investing in research and development, according to industry experts, at the Global Cotton Summit jointly organised by Bangladesh Textiles Mills Association (BTMA) and Bangladesh Cotton Association (BCA), in Dhaka, recently. Dr Md Farid Uddin, executive director of Bangladesh Cotton Development Board (CDB), said that it is possible to grow 30% of the demand - or 1.4-1.5 million bales of cotton worth Tk 100 billion, if 0.2-0.25 million hectares of land could be brought under cotton farming.

While presenting a paper on cotton production and its challenges in Bangladesh, he said the country’s cotton production has been gradually increasing, even as Bangladesh imports nearly 4.2 million bales of cotton worth Tk 210 billion annually and imports too have been increasing every year. He said area under cotton is now at 52,000 hectares with an output target of 0.205 million bales. Bangladesh’s cotton production was 0.144 million bales from 0.041 million hectares in FY'14, up from 0.129 million bales from 0.039 million hectares in FY'13.

Richard Pollard, chairman (rules committee) of International Cotton Association (ICA) presented a paper on the rules of ICA. The majority of the world's cotton is traded internationally under ICA Bylaws and Rules. The ICA's aim is to create a safe trading environment and to protect the legitimate interests of all those who trade cotton, he said. He discussed issues like fluctuation in the market which creates difficulties for both buyers and sellers in fulfilling or complying with contractual obligations, export barriers and unperformed import contracts. BTMA president Tapan Chowdhury, former president Jahangir Alamin, and vice president Showkat Aziz Russel, BCA president Muhammad Ayub, and its secretary Mehdi Ali and managing director of Reed Consulting (BD) Ltd Rodney J. Reed, among others, spoke at the summit.

Bangladesh is the second largest cotton importer after China and also the second largest garment exporter after China. With Bangladesh being an important destination for cotton traders, nations exporting cotton are focusing on the country. More than 250 cotton traders, growers, spinners and millers participated in the summit to discuss the market for cotton. Delegates from Bangladesh, India, Poland, US, Russia, Pakistan, China, the UK, Turkey, Egypt, Switzerland, Singapore, Hong Kong and France were present.

"The summit was aimed at sharing ideas, exchanging views and understanding the dynamics of growing cotton. There are some disputes between buyers and sellers. We hope these disputes will be resolved through face to face conversation at the summit,” Tapan said.