Muhammad Ayub Ali :
Bangladesh, the world’s second-largest exporter of ready-made garments, depends heavily on imported cotton. With domestic production covering only a small fraction of its needs, the apparel sector relies almost entirely on foreign cotton, driving up costs and threatening global competitiveness.
Between 2020 and 2024, Bangladesh imported around 39.61 million bales of cotton from 36 countries, spending a staggering $20.29 billion, according to Bangladesh Agricultural Economics (BAE) analysis based on National Board of Revenue data. While yearly import volumes and costs have fluctuated, the overall trend points to increasing reliance on international cotton markets.
The country’s 1,849 spinning mills are central to the garment industry, and their cotton demand is rising as global brands shift sourcing away from China toward Bangladesh. Yet domestic production remains very low; in FY 2024-25, Bangladesh produced just 1.53 lakh bales on 45,000 hectares-a negligible portion of total demand.
Cotton Import Trends
In 2024, Bangladesh is projected to import 8.38 million bales worth $3.92 billion, up from 6.26 million bales in 2023. The highest import value came in 2022, with 8.37 million bales costing $5.04 billion. In 2021, imports peaked in volume at 10.08 million bales valued at $4.72 billion,
while 2020 saw 6.52 million bales worth $3.29 billion.
Leading Suppliers
Africa leads as the largest cotton source, supplying 16.32 million bales worth $8.16 billion-about 41percent of imports-from countries like Benin, Mali, Mozambique, and Nigeria, prized for quality and affordability.
India ranks second, exporting 9.52 million bales worth $4.83 billion (24percent), facilitated by proximity and land ports such as Benapole and Bhomra. However, a halt in yarn imports through these ports has pushed local mill prices higher, raising concerns about competitiveness, according to former BGMEA Director Mohiuddin Rubel.
The US supplied 2.84 million bales valued at $1.87 billion, mainly high-grade cotton for premium exports. Other notable suppliers include Australia (2.24 million bales | $1.16 billion), CIS countries (0.79 million bales | $375 million), and Brazil, China, and Canada combined (7.9 million bales | $3.87 billion).
Trade Policy and Outlook
Bangladesh currently faces a 20percent countervailing duty on cotton-based exports to the US, but this can be waived if 20percent or more of raw materials are US-sourced, says BGMEA President Mahmud Hasan Khan. Increasing US yarn imports from $400-500 million to $2 billion could unlock significant tariff relief.
A USDA report forecasts Bangladesh will become the world’s top cotton importer in FY 2025-26, importing 8.4 million bales-around 20percent of global cotton trade. The country already ranks fourth globally, consuming 8.55 million bales annually.
According to Bangladesh Bank, the country spent Tk 2.67 lakh crore on cotton imports over the past decade, including Tk 39,098 crore in FY 2023-24 alone.
Experts emphasize that expanding domestic cotton production is crucial to reducing this costly import bill and freeing funds for national development.
