Foreign adviser Md Touhid Hossain on Monday said that the government would soon implement measures to recognise cotton as an agricultural product, enabling growers to access low-interest loans and subsidies to support local cotton cultivation.

He said that positive decisions regarding the increase of cotton production and the easing of cotton import regulations would be made within the next two to three months.

However, the adviser acknowledged that achieving 100 per cent local cotton production was not possible due to land scarcity, though he noted that the production of the raw material could be increased by up to 25 per cent.

Touhid Hossain made these remarks at a workshop on ‘The importance and potential of cotton cultivation in Bangladesh to save foreign currency’ jointly organised by Economic Reporters Forum (ERF), Bangladesh Cotton Ginners Association and Bangladesh Sudan Ginning Cotton Co. Ltd (Sudan) held at ERF auditorium in the city.

The foreign adviser also called on National Board of Revenue to take immediate measures to withdraw existing 4.0 per cent advance income tax on domestically produced cotton.

He also advocated the cotton ginners demand for a ‘free zone ware house’ facility saying the facility could be offered to them to get fair prices and ensure the adequate and timely supply of cotton.

Talking over LDC graduation, the advisor further said the decision that Bangladesh would graduate in 2026 had taken long ago and businesses should have prepared by this time which they are yet to and now demands for extensions.

‘Bangladesh will continue to enjoy duty-free access to the European Union for three more years until 2029 after the graduation. I believe our businesses can prepare themselves within the three years grace period,’ he said reiterating that the government would not go for the graduation time extension.

Touhid Hossain also said that steps were being taken to import cotton from the United States as a strategic measure to prevent any further tax impositions by the Trump administration on Bangladesh’s garment exports.

He mentioned that the US government had imposed tariffs on several countries since Donald Trump took office.

Though Bangladesh has already been exporting with tariffs in place, uncertainty over additional tariffs always remains, the adviser said.

Speaking at the event, NBR Member (Customs, Export and IT) Md Moazzem Hossain said that discussions were underway to extend bonded warehouse facilities to several sectors, with the possibility of introducing these benefits for cotton imports.

He also assured that he would present a proposal to the concerned NBR officials to withdraw the Advance Income Tax (AIT) on locally produced cotton.

Bangladesh Cotton Ginners Association general secretary Golam Saber stated that cotton growers and ginners have been deprived of access to agricultural loans due to the lack of recognition of cotton as an agricultural product.

He mentioned that a quarter of the required cotton could be cultivated locally, provided the necessary policy support is given.

Saber urged the government to recognise cotton as an agricultural product.

Md Fakhre Alam Ibne Tabib, executive director of the Cotton Development Board, also echoed these sentiments, stating that with the necessary policy support, local cotton production could increase to 2.5 million tonnes annually without compromising food security.

Bangladesh Sudan Ginning Cotton Co Ltd managing director Abul Khayer said that they have already piloted three types of hybrid cotton seeds, which could enable the cultivation of higher quantities of cotton on smaller plots of land.

He said that they have proposed the development of a free zone warehouse in Bangladesh to the Chattogram Port Authority and the Bangladesh Investment Development Authority.

This initiative aims to save time and reduce yarn production costs, among other benefits.

The seminar was chaired by ERF president Doulot Akter Mala, with the forum’s general secretary Abul Kasem moderating the proceedings.