Shipment company

Buoyant apparel shipments boost cotton consumption

Cotton consumption in Bangladesh in marketing year (MY) 2022-23 will increase by 5.6% year-on-year to 9.31 million bales.

This can be expected for an increase in demand for yarns and fabrics for corresponding work orders from international apparel retailers and brands, according to the United States Department of Agriculture (USDA).

The marketing campaign for cotton sales begins in August and ends in July.

Bangladesh is receiving more orders since the start of 2021 as many brands transfer orders from some competing countries such as Vietnam and Indonesia, the USDA said.

The contacts also said Bangladesh expects more work orders in the coming months due to recent Covid-19 lockdowns in China, the USDA said.

USDA data also puts domestic consumption of raw cotton in marketing years 2021-22 at 9 million bales, 2.27% higher than initial official USDA estimates. USDA data projects that in marketing year 2022-23, yarn and fabric consumption would reach 0.96 million tons and 6.4 billion meters respectively.

For the 2021-22 marketing year, the data estimates yarn and fabric consumption at 0.95 million tons and 6.3 billion meters respectively.

It projects that for marketing years 2022-23, cotton imports would reach 8.9 million bales, up 7.2% from the official USDA estimate for marketing years 2021-22 , assuming an increasing demand for yarns and fabrics by the garment industry.

The USDA estimates cotton imports in marketing years 2021-22 at 8.7 million bales, up 4.8% from the initial official USDA estimate. According to National Board of Revenue data, Bangladesh imported about 5 million bales of cotton in the first seven months of the 2021-22 marketing year.

“We also believe that cotton importation and consumption will increase by nearly 1 million bales in the 2022-23 marketing year,” said Monsoor Ahmed, managing director of the Bangladesh Textile Mills Association, the platform. -form of the main textile factories.

Indeed, local spinners have already increased their spindle capacity while new investment in the primary textile sector has taken place even in times of Covid-19, Ahmed told the Daily Star by phone.

Among the import destinations, India accounts for the largest market share.

In 2021, in quantity, Indian cotton accounted for 29% of imports, followed by Brazil (15%), Benin (13%) and the United States (9%). The volume of US cotton exports to Bangladesh in 2021 was approximately 816,000 bales, 58% less than in 2020.

Indian cotton is exported through the seaport of Kolkata and the land port of Benapole, with traders noting that transport and logistics are cheaper than other origins, with shorter shipping times due to geographical proximity .

The USDA projects stocks at the end of the 2022-23 marketing year to be 2.25 million bales, approximately 11% lower than the official USDA 2021-22 marketing year estimate. .

Due to problems in the global cotton supply chain and rising prices, local spinners will reduce their stock.

The USDA message said that in the 2021-22 marketing year, the remaining stock of cotton was estimated at 2.51 million bales, which is similar to the official USDA estimate.

New orders for Russian market contacts indicate garment exporters in Bangladesh are unsure of receiving payments from Russian buyers as Russian banks have been cut off from SWIFT.

They are also concerned about shipments of existing orders to Russia as shipping lines suspend container bookings to the country.

According to local reports, the Bangladesh Garment Manufacturers and Exporters Association has asked exporters not to accept new orders for the Russian market.

The textile industry in Bangladesh is made up of yarn, fabric and dye-print-finish factories.

According to the Bangladesh Textile Mills Association (BTMA), in the calendar year (CY) 2021, the number of spinning mills reached 510 with an annual spindle capacity of 15 million bales, up 18% and 7.1 % respectively compared to the previous year.

However, Bangladesh currently consumes only about 8.5 million bales of raw cotton per year.

Bangladesh’s yarn production recovered in 2021 after a long period of market disruption due to Covid-19 induced lockdowns and restrictions in 2020.

The USDA post forecasts MY 2022-23 yarn production at 760,000 tons, up 1.3% from that of MY 2021-22.

For MY 2022-23, USDA projects a cotton harvest area of ​​46,000 hectares, up 2.2% from USDA’s MY 2021-22 official estimate .

The Post’s forecast for MY 2022-23 cotton production is 155,000 bales, up 2.6% from the official USDA estimate for MY 2021-22 , assuming favorable weather conditions and continued government support.

Locally produced cotton accounts for less than 2 percent of total cotton consumption.

Total cotton cultivation in Bangladesh covers only 0.55% of the country’s 8.1 million hectares of arable land. Bandarban, Jhenaidah, Jashore and Rangamati are the main cotton producing regions of the country.