Cotton consumption in Ready Made Garment (RMG) industry continues to rise on the strong performance of the sector. Bangladesh is depended on cotton import, as the country produces only one percent of the total need of cotton for making yarns and fabrics for garments. And Bangladesh imports its maximum necessary cotton from its neighbor country India. Though over the years China has been the biggest Indian cotton importer recently Bangladesh has surpassed China and has emerged as the largest Indian cotton importer, according to official data of India.
Directorate General of Commercial Intelligence and Statistics (DGCIS) shows that India’s exports of cotton and cotton products, such as yarn and fabric in 2016-17 to China, the world’s largest textile and garment exporter, dropping to $416.14 million, while those to Bangladesh touches $613.16 million in the first half of the current fiscal.
Global giants like the US and China have shifted their cotton imports away from India while Bangladesh is steadily importing more and more from India. Just few years ago, China imported cotton from India more than four times from Bangladesh.
US-based International Cotton Advisory Committee (ICAC) report said, year-ending stocks in China dropped 13% to 11.3 million tons in 2015-16 (marketing year that runs from October through September), as the government there sold over 2 million tons from its official reserves from May through September 2016. And the government is planning to begin sales from its reserves in March 2017 when the majority of the new crop will have been sold, the ICAC said.