Bangladeshi Mills Interested in Buying $120 Million of U.S. Cotton

Bangladeshi mills expect to buy approximately 250,000 bales of U.S. cotton valued at $120 million following Cotton Day Bangladesh and in-person COTTON USA™ seminars in Dhaka from Nov. 15-19, 2021.

Senior leadership from approximately 50 spinning mills, as well as leading Bangladeshi cotton textile associations, attended these events, funded in part by USDA’s Market Access Program (MAP). Post-event survey results show that 98% were satisfied with the two events, 95% agreed they were able to achieve their objectives for attending and 84% are likely to purchase U.S. cotton in the future.

Representatives from the American Cotton Shippers Association (ACSA), the American Cotton Cooperatives (AMCOT) and Cotton Council International (CCI) met with these mill leaders, as well as leading Bangladeshi cotton textile related associations, to provide important market updates.

Bangladesh currently ranks as the second largest global cotton importer with approximate imports of 8.75 million bales in MY20/21. Bangladeshi spinning mills have an unusually high demand for yarn, which is selling at $5.25 for 30 carded single count (plus 25 cents for contamination-free yarn), prices not seen for almost ten years.

The week of meetings resulted in encouraging news regarding the Bangladeshi textile industry making significant changes to improve the flow of cotton into the market. The Bangladeshi spinning industry is very interested in maintaining existing and establishing new relationships with the U.S. cotton exporting community to grow U.S. cotton exports to Bangladesh. Presently the U.S. has a 14% share of all cotton imports to Bangladesh. Within the next two years Bangladesh’s net cotton consumption is expected to grow by an additional 1.5 million bales, and U.S. cotton is perfectly suited to meet the need for high quality and reliable contracts and delivery.

In addition, CCI’s delegation received firsthand reports from mills expressing interest in having pure U.S. cotton production lines to meet the demands by leading international brands and retailers requesting U.S. cotton-rich products qualifying for the U.S. Cotton Trust Protocol®.  Garment manufacturers are receiving requests from well-known Trust Protocol members such as Next and PVH’s Tommy Hilfiger.