Bangladesh’s cotton imports have registered a 5% rise to $1 billion in the first quarter of the current fiscal year 2018-19, thanks to the rise of apparel exports.
According to Bangladesh Bank (BB) data, in July-September period of the current fiscal year, Bangladesh’s raw cotton import went up by 5% to over $1 billion, which was $983 million in the same period of the last fiscal year.
Meanwhile, cotton yarn import also saw a sharp rise by 34.65% to $690.33 million, which was $512.77 million in the same period a year ago.
In the reaction with the Textile Today, trade analysts and sector people have explained that the raw cotton import increased due to the rise in apparel work orders.
While the harvesting season also expedite the imports as the spinners moved to improve stock capacity for the future.
“It is the peak season for the cotton collection of cotton and spinners usually book for import to store for the next season. While the prices of cotton is comparatively low,” Khorshed Alam, Managing Director of Little Star Spinning Mills Ltd told the Textile Today.
As a result, the import of raw cotton has gone up, said Alam, also director of Bangladesh Textile Mills Association (BTMA).
On the other hand, apparel makers and trade analysts opined that due to the rise of RMG export orders there are more demands of fabrics.
It is the peak season for the cotton collection of cotton and spinners usually book for import to store for the next season. While the prices of cotton is comparatively low.
In meeting the demands, the spinners imported more raw cotton, which help to post a better growth in import of raw cotton, they said.
“In the last couple of month, apparel export saw nearly 20% growth. This is mostly because of the US-China trade war. Since the trade war continues, spinners moved for increasing their stock to meet the demands of fabrics,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Senior Vice President Faruque Hassan told the Textile Today.
As a result, the export of raw cotton and cotton yarn have risen sharply, he added.
“It is a good sign for Bangladesh apparel sector as it means the RMG makers are getting more work orders, which pushed the demands of fabrics, pushing the demands up,” Former Caretaker Government Advisor AB Mirza Azizul Islam.
He also suggested the government to start negotiating with the cotton producing countries so that the importers can get benefits of the bilateral trade agreement.